Citi Reaffirms Buy on AppLovin Ahead of Q2 Earnings

Citi reiterated its Buy rating and $600 price target on AppLovin (NASDAQ:APP), naming the stock its top pick as the company approaches its second-quarter earnings report, scheduled for August 6th.

The firm expects AppLovin’s Q2 results to come in at the higher end of guidance for both revenue and adjusted EBITDA, reflecting continued strength in the business. Key areas of investor focus include the company’s growing eCommerce advertising initiative, the anticipated launch of self-serve tools—likely in the fourth quarter—and potential shifts in mobile ad spending tied to changes in app store fee structures.

Citi is also watching how AppLovin navigates an evolving competitive landscape, particularly in light of Unity’s recent Vector launch. Additionally, capital allocation decisions remain an important topic, with investors looking for updates on how the company plans to deploy cash in the current environment.

With robust growth catalysts in place and operational momentum building, Citi maintains a bullish stance on AppLovin, viewing it as well-positioned for long-term outperformance in the mobile advertising sector.