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."
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Shares of AppLovin Corp closed at $617.05 yesterday.