On August 11, AppLovin Corporation declined 3.95% in regular trading, trading at $324.58 per share with turnover of $234 million, as the stock continued to face downward pressure following a major Wall Street downgrade.

Bank of America Securities downgraded AppLovin from Buy to Neutral, cutting its price target from $430 to $400, becoming the latest major institution to lower its rating on the stock. This follows a similar move by Piper Sandler, which earlier downgraded AppLovin from Overweight to Neutral with a sharp target reduction from $665 to $385.

The downgrades come in the wake of AppLovin's Q2 results, which showed revenue of $1.92 billion, up 53% year-over-year but falling short of the $1.94 billion analyst consensus. Q3 revenue guidance of $2.06 billion to $2.09 billion also came in slightly below expectations. The underperformance was attributed to delays in deploying a planned major AI model upgrade. Morgan Stanley characterized the miss as a short-term execution issue rather than structural weakness, noting the company reaffirmed its long-term growth target of over 30%.

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