AppLovin Targets Slashed to $705 and $650 After Q4 Beat, Gaming Strength
BofA reduced AppLovin’s price target to $705 from $780 but kept a Buy rating, citing sector de-rating, cooling e-commerce trends and valuation support from its gaming segment. Piper Sandler cut its target to $650 from $800 after Q4 EBITDA beat estimates by mid-single digits and Q1 revenue growth of 5-7%.
1. Price Target Reductions
BofA lowered its AppLovin price target from $780 to $705 while maintaining a Buy rating, attributing the cut to a broader sector de-rating and cooling e-commerce momentum. On the same day, Piper Sandler trimmed its target from $800 to $650 and reiterated an Overweight stance.
2. Q4 Financial Performance
AppLovin reported a ‘clean beat & raise’ for Q4, with adjusted EBITDA exceeding consensus by mid-single-digit percentages. The results reflected robust demand across both its Advertising and Apps segments, underpinned by its dominant gaming business.
3. Q1 Revenue Outlook
Management issued guidance for Q1 revenue growth of 5–7% quarter-over-quarter, driven by continued expansion in its gaming operations and ongoing investments in e-commerce monetization tools.