Citi Reaffirms Buy on AppLovin Ahead of Q2 Earnings
Summary
Citi has reaffirmed its 'Buy' rating and $600 price target for AppLovin (APP), naming it a top pick ahead of its Q2 earnings report on August 6th. The firm anticipates Q2 results at the high end of guidance, driven by strong business performance. Key investor focuses include AppLovin's growing eCommerce advertising, upcoming self-serve tools, and adaptation to mobile ad spending shifts. Citi also notes the importance of navigating the competitive landscape and strategic capital allocation, maintaining a bullish outlook for AppLovin's long-term outperformance.
Citi Reaffirms 'Buy' on AppLovin (APP) Ahead of Q2 Earnings, Names it Top Pick
NEW YORK, NY – July 14, 2025 – Citi has reiterated its 'Buy' rating and a robust $600 price target on AppLovin (NASDAQ: APP), designating the mobile advertising technology company as its top pick. This strong endorsement comes as AppLovin prepares for its second-quarter earnings report, slated for release on August 6th.
Anticipated Strong Q2 Performance
Citi analysts project that AppLovin's Q2 results will land at the higher end of its previously issued guidance for both revenue and adjusted EBITDA. This optimistic outlook is underpinned by the firm's assessment of AppLovin's sustained operational strength and momentum within the mobile advertising sector.
Key Areas of Investor Focus
Investors are keenly watching several strategic initiatives and market dynamics that could significantly impact AppLovin's performance:
- Growing eCommerce Advertising Initiative: AppLovin's expansion into the eCommerce advertising space is a significant growth driver. Citi highlights the continued progress and potential of this segment to contribute substantially to future revenues.
- Anticipated Launch of Self-Serve Tools: The expected introduction of self-serve tools, likely in the fourth quarter, is a critical development. These tools are anticipated to broaden AppLovin's client base and enhance operational efficiency by empowering advertisers with more direct control over their campaigns.
- Mobile Ad Spending Shifts: The evolving landscape of mobile ad spending, particularly in response to changes in app store fee structures, remains a key area of observation. AppLovin's ability to adapt and capitalize on these shifts will be crucial for sustained growth.
Navigating the Competitive Landscape and Capital Allocation
Citi is also closely monitoring how AppLovin addresses the intensifying competitive environment. The recent launch of Unity's Vector platform, for instance, introduces new dynamics that AppLovin must navigate effectively to maintain its market position.
Furthermore, capital allocation decisions are a prominent topic among investors. Shareholders are seeking clarity and updates on how AppLovin plans to strategically deploy its cash reserves in the current economic climate, whether through investments in growth, share buybacks, or other initiatives that enhance shareholder value.
Bullish Stance on Long-Term Outperformance
Despite the competitive pressures and evolving market, Citi maintains a decidedly bullish stance on AppLovin. The firm believes that the company possesses robust growth catalysts and is building significant operational momentum. This combination positions AppLovin favorably for long-term outperformance within the dynamic and expanding mobile advertising industry. The reiteration of a 'Buy' rating and a high price target underscores Citi's confidence in AppLovin's strategic direction and execution capabilities.