AppLovin Shares Plunge 18% After Q4 Beat; Price Targets Lifted to $640 and $775
AppLovin posted Q4 revenue of $1.658B (up 66% YoY) and EBITDA of $1.399B with EPS of $3.24, yet the shares plunged over 18% on the day. Wedbush lifted its price target to $640 (from $465) and Scotiabank raised its to $775, both keeping outperform ratings despite the sell-off.
1. Q4 Earnings Beat And Strong Margins
AppLovin reported fourth-quarter revenue of $1.658 billion, up 66% year-over-year, and delivered adjusted EBITDA of $1.399 billion alongside EPS of $3.24, surpassing estimates across all key metrics.
2. Stock Plunge And Market Cap Loss
Despite the strong quarter, shares tumbled over 18% in a single session, wiping out roughly $28 billion in market value as broader tech sector weakness and margin concerns in hardware weighed on sentiment.
3. Analyst Upgrades And Outlook
Wedbush raised its price target to $640 from $465 and reiterated an outperform rating, while Scotiabank increased its target to $775 with an outperform stance, citing robust margins and sustainable growth drivers in AppLovin’s AI-powered ad platform.