Shares of AppLovin (APP.O) dropped 15.7% to $352.73 premarket.
The marketing platform's Q2 revenue of $1.924 billion missed analysts' average estimate of $1.935 billion, according to LSEG-compiled data.
Q3 revenue forecast was largely in line with estimates.
Brokerages cut price targets as stock underperforms
At least four brokerages cut price targets on the stock, with Piper Sandler downgrading its rating to "neutral" from "overweight".
The stock recently traded at 21 times expected earnings, versus an average forward P/E of 45 over the past five years, per LSEG-compiled data, suggesting it may be undervalued.
The median analyst price target on APP is $640 and the average rating of 32 analysts is "buy".
Year to date, the stock has plunged about 38%, compared with the Nasdaq's 13.4% rise.
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