Why is AppLovin stock sliding today?

AppLovin (APP) shares dropped 3.5% after Edgewater Research analyst Joe Wittine warned of stalled market share growth. Wittine forecasts Q4 revenue growth of 8-9% QoQ, citing competition and supply constraints. AppLovin's Q3 guidance was 7-8.6% QoQ growth. Wittine also noted Unity (U) as a competitive threat, potentially impacting AppLovin's margins and valuation.

AppLovin (APP) rose 6.2% over the last five days while the S&P 500 fell 1.1%. The stock is 55% below its 52-week high. Over the past year, it captured 184% of the S&P 500's gains and 306% of its losses. The company's revenue of $1.92 billion in Q2 2026 was below guidance, causing an 18% premarket drop. The stock has averaged 35.9% annual returns over five years, but has underperformed in the past year.

Morgan Stanley reduced its price target for AppLovin (NASDAQ: APP) to $450 from $650, citing valuation concerns. The stock is down 52% YTD and 44% over the past year. The firm maintains an Overweight rating, noting strong revenue growth and gross margins, but expects deceleration in gaming ad business. Other analysts have also lowered price targets due to revised estimates and growth concerns.

Morgan Stanley reduced its price target for AppLovin from $650 to $450, maintaining an overweight rating. The company's stock closed at $323.96, up 3.01%.

AppLovin (APP) reported higher revenue growth than The Trade Desk (TTD) over the last eight quarters, with a 78% operating margin for Q2 2026. The Trade Desk, with a 14% operating margin, announced restructuring. AppLovin projects Q3 2026 revenue of $2.1B, while The Trade Desk expects $650M, down from $739M in Q3 2025.

AppLovin (APP) shares rose 2.5% after Citi initiated a short-term upside view, setting a $600 price target and predicting a 91% gain over 90 days, according to analyst Aarushi Gupta.