AppLovin shares have fallen 52.7% year to date, trading near a 52-week low of $318.12, yet Wall Street's consensus price target of $559 implies more than 75% upside. The selloff accelerated after second-quarter revenue of $1.923 billion missed consensus by 0.94% and adjusted EBITDA landed just below guidance, which CEO Adam Foroughi attributed to a timing issue in model improvements. Despite the miss, revenue grew 52.8% year-over-year, adjusted EBITDA margins held at 84%, and free cash flow reached $863 million. The company guided for third-quarter revenue between $2.055 billion and $2.085 billion with EBITDA margins around 83%, and it repurchased $551 million in stock during the quarter with roughly $1.8 billion in remaining authorization. Analysts remain bullish, citing AXON's expansion beyond gaming, the launch of a self-serve ad manager for mid-market advertisers, and the resolution of an SEC overhang.
