Benchmark reiterates Buy rating on AppLovin stock ahead of Q2 results

Investing.com - Benchmark has reiterated its Buy rating and $525.00 price target on AppLovin Corp (NASDAQ:APP) ahead of the company’s second-quarter earnings report. The target represents significant upside potential from the current price of $346.44, though InvestingPro data indicates the stock may be trading above its Fair Value. With a market capitalization of $120.7 billion and impressive gross profit margins of 77.7%, APP has demonstrated strong financial performance.

The research firm expects AppLovin to exceed expectations in its Q2 2025 results, which will be released on August 6, followed by a conference call at 5:00 PM ET. The company has shown robust revenue growth of 41.6% over the last twelve months. For deeper insights into APP’s earnings potential and 16 additional exclusive ProTips, check out the comprehensive research available on InvestingPro.

Benchmark attributes its positive outlook to continued momentum in AppLovin’s high-margin Advertising segment and strong performance in the emerging web category.

The firm acknowledges that AppLovin may face increased scrutiny regarding its third-quarter guidance, particularly as Unity’s recently launched AI-powered ad platform, Vector, gains attention and raises questions about competitive dynamics.

Despite these potential challenges, Benchmark maintains confidence in AppLovin’s competitive advantages, execution capabilities, and growth opportunities in areas like web advertising, which it believes will drive significant growth in the second half of 2025 and beyond.

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In analyst updates, Citi has reiterated its Buy rating on AppLovin Corp with a $600.00 price target ahead of the company’s second-quarter earnings report. Additionally, Scotiabank (TSX:BNS) initiated coverage on AppLovin with a Sector Outperform rating and a $430.00 price target, highlighting the company’s strong performance metrics. These recent developments reflect important changes and expectations for investors to consider.

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