AppLovin Shares Drop 20% After Missing Revenue Estimates

AppLovin Corporation saw its share price drop nearly 20% on August 6, 2026, after reporting second-quarter revenue of $1.92 billion. While this represented a 53% increase year-over-year, the figure missed the Wall Street consensus estimate of $1.94 billion. The company reported GAAP earnings of $1.266 billion, or $3.76 per share, and a 58% increase in adjusted EBITDA to $1.61 billion.

CEO Adam Foroughi attributed the revenue miss to the timing of improvements in the company's artificial intelligence-powered advertising models and underperformance in the core gaming segment. Foroughi noted that the pace of model improvement was lighter than normal during the quarter and that a performance increase occurred shortly after the period ended.

Investor disappointment continued with the company's third-quarter revenue guidance of $2.055 billion to $2.085 billion, which fell below the $2.08 billion consensus. In response, Piper Sandler downgraded the stock to neutral and reduced its price target from $665 to $385. Despite the short-term miss, the company maintains a long-term annual growth goal of 30%.