LSEG

Applovin Shares Fall After Q2 Revenue Miss

Applovin reported second-quarter results that missed Wall Street revenue expectations, driving its stock down about 17%. The company reported earnings per share of $3.76 (matching estimates) and revenue of $1.92 billion versus $1.94 billion expected, a 53% year-over-year revenue increase. CEO Adam Foroughi attributed the shortfall to the timing of improvements in the company’s AI-powered advertising models as it expands into e-commerce, saying the next step up in model performance occurred after the quarter ended. Piper Sandler analyst James Callahan downgraded the stock to neutral and cut the price target from $665 to $385 following the results.

Piper Sandler Downgrades AppLovin After Mixed Q2

Piper Sandler analyst James Callahan downgraded AppLovin to neutral from overweight after the company reported mixed second-quarter results and issued third-quarter profit guidance that missed expectations. Callahan cut his price target to $385 from $665 and cited timing and magnitude of model improvements, higher compute costs in Q2, and investments in new model architectures as concerns. AppLovin shares fell more than 16% in premarket trading. The article notes AppLovin's strong prior returns in 2024 and 2025 and that most analysts still rate the stock a buy or strong buy according to LSEG.

SoftBank boosted by $8.2B Intel gain

SoftBank reported fiscal first-quarter profit driven largely by a 1.3 trillion yen (about $8.2 billion) gain on its stake in Intel and a rise in the value of its stake in ByteDance. The company posted net profit of 347.3 billion yen for the June quarter, beating analyst expectations, while its Vision Funds saw a $1.7 billion gain led by a $2.2 billion increase in ByteDance's valuation. SoftBank recorded no investment gain or loss tied to OpenAI. Its AI computing segment posted a larger loss year-on-year, with higher R&D costs at owned chip companies such as Arm, Graphcore and Ampere cited as a reason.