"Sheridan said AppLovin delivered another strong quarter, driven by robust advertising revenue growth across both gaming and non-gaming segments, powered by its AXON 2.0 platform. The analyst commented that management highlighted three core themes, namely, continued advertising strength, promising early results from the new self-serve eCommerce portal, and sustained high incremental margins despite selective investments in cloud hosting and customer acquisition."
"AppLovin Corp (NASDAQ: APP) delivered yet another strong quarter, fueled by the success of its artificial intelligence-driven AXON 2.0 platform and the early momentum of its new self-serve eCommerce portal. The company is generating industry-leading profitability with roughly 85% incremental adjusted EBITDA margins, while expanding its reach beyond gaming and deepening its push into eCommerce and AI-powered ad optimization. Goldman Sachs analyst Eric Sheridan maintained a Neutral rating on AppLovin and raised the price forecast from $630 to $720."
"Sheridan emphasized the company's ability to maintain ~85% incremental adjusted EBITDA margins even as it reinvests in platform expansion. The analyst said that investor focus in the near term will likely center on how quickly the eCommerce business scales, but over the long term, AppLovin remains well-positioned to deliver above-average growth and strong margins within the broader digital advertising and mobile gaming landscape."
AppLovin reported strong financial performance driven by its AI-driven AXON 2.0 platform and early momentum from a self-serve eCommerce portal. Advertising revenue grew across gaming and non-gaming segments while the company expanded beyond gaming into eCommerce and AI-powered ad optimization. Management highlighted continued advertising strength, promising eCommerce early results, and sustained high incremental margins despite targeted investments in cloud hosting and customer acquisition. Goldman Sachs maintained a Neutral rating while raising its price target from $630 to $720. Near-term investor focus centers on eCommerce scaling, with long-term prospects pointing to above-average growth and strong margins.
Read at Benzinga
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