Needham Remains Sidelined on AppLovin Corp (APP): 'Management set a higher than normal target for sequential growth'

Needham analyst Bernie McTernan reiterated a Hold rating and {REMOVEPT} price target on AppLovin Corp (NASDAQ: APP).

The analyst comments "APP reported another beat and raise quarter driven by a model improvement helping core mobile gaming advertising to accelerate. Management set a higher than normal target for sequential growth, 13% at the midpoint of guidance benefiting from model enhancements, positive gaming seasonality and positive ecommerce seasonality. The fear from investors was management would guide to a sequential growth number closer to their typical MSD. We are taking up our '26E estimates by +12% on revenue, now assuming ecommerce reaches $1B of revenue, which would represent over 100% growth over '25E, we estimate, but still likely below bull's expectations."

For an analyst ratings summary and ratings history on AppLovin Corp click here. For more ratings news on AppLovin Corp click here.

Shares of AppLovin Corp closed at $617.05 yesterday.

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