Key Takeaways:
- AppLovin's (APP, Financial) Q1 earnings report surpasses expectations, driving a 14% after-hours stock surge.
- Wall Street analysts forecast significant upside potential with an average target price of $468.80.
- Consensus recommendation rates AppLovin as "Outperform," though GF Value suggests caution.
AppLovin's (APP) shares soared by about 14% during after-hours trading, spurred by its robust first-quarter earnings and an encouraging outlook for its Q2 advertising revenue. The company has projected its Q2 advertising revenue to land between $1.195 billion and $1.125 billion, while its adjusted EBITDA is anticipated to be in the vicinity of $970 million to $990 million. Notably, AppLovin's Q1 GAAP diluted EPS saw a notable increase to $1.67, up from $0.67 in the same quarter last year, with cash reserves totaling $551 million.
Wall Street Analysts Forecast
According to price targets set by 21 analysts for the next year, AppLovin Corp (APP, Financial) is expected to have an average target price of $468.80,with projections ranging from a high of $650.00 to a low of $200.00. This average target hints at an upside of 54.48% from its current trading price of $303.46. For more in-depth forecasts, visit the AppLovin Corp (APP) Forecast page.
The consensus recommendation from 27 brokerage firms gives AppLovin Corp (APP, Financial) an average brokerage recommendation score of 1.9, which indicates an "Outperform" status on the rating scale. This scale spans from 1, indicating a Strong Buy, to 5, which suggests a Sell.
However, when viewed through the lens of GuruFocus estimates, the estimated GF Value for AppLovin Corp (APP, Financial) over the next year is $89.93. This prediction implies a potential downside of 70.37% from its present price of $303.46. It's essential to note that GF Value is GuruFocus' estimate of the fair trading value, calculated using the stock's historical trading multiples, the business's past growth, and future performance projections. For further details, explore the AppLovin Corp (APP) Summary page.
