Citi reiterates Buy rating on AppLovin stock ahead of Q2 earnings

Investing.com - Citi has reiterated its Buy rating and $600.00 price target on AppLovin Corp (NASDAQ:APP) ahead of the company’s second-quarter earnings report. The mobile technology company has demonstrated impressive performance with a 294.89% return over the past year and maintains strong gross profit margins of 77.72%.

The mobile technology company is scheduled to release its Q2 2025 financial results after market close on Wednesday, August 6th.

Citi expects AppLovin’s Q2 2025 results to land at the high end of the company’s revenue and adjusted EBITDA guidance range.

The firm believes investors will focus on several key areas including AppLovin’s eCommerce advertising initiative, the launch timing of self-serve tools (expected in Q4 2025), implications of app store fee changes on mobile ad spending, capital allocation, and competitive landscape updates following Unity Vector launch.

AppLovin remains Citi’s top pick in the sector, with the firm maintaining its approximately $600 target price on the stock.

In other recent news, AppLovin Corporation has completed the sale of its mobile gaming subsidiaries to Tripledot Group Holdings Limited for $400 million in cash and an equity stake in Tripledot. This transaction is part of AppLovin’s strategy to enhance its focus on its core advertising business. Additionally, Piper Sandler raised its price target for AppLovin to $470, citing continued strength in the company’s total supply growth despite some mixed trends. Morgan Stanley (NYSE:MS) also increased its price target to $460, attributing the rise to AppLovin’s decision to sell its apps segment, which is expected to enhance shareholder value.

Meanwhile, Scotiabank (TSX:BNS) initiated coverage on AppLovin with a Sector Outperform rating, highlighting the company’s strong performance metrics and competitive advantages. The bank noted AppLovin’s AXON engine as a significant competitive moat and its resilience to regulatory changes. In other developments, Datadog Inc (NASDAQ:DDOG). has been added to the S&P 500 index, replacing Juniper Networks (NYSE:JNPR) following its acquisition by Hewlett Packard Enterprise (NYSE:HPE). Datadog’s inclusion marks a significant milestone, reflecting its growth since going public in 2019. These updates reflect recent strategic moves and analyst insights impacting AppLovin and Datadog.

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