AppLovin (APP) Has Set The Bar High. Can It Deliver Good Earnings Again?

AppLovin Corporation (NASDAQ:APP) is one of the 10 Best AI Stocks to Watch in July. Based on a report released on July 1, Clark Lampen, an analyst at BTIG, reaffirmed a Buy rating on AppLovin Corporation (NASDAQ:APP) along with a price target of $640. The firm’s assigned price target reflects a further 17% upside from current levels. This upside is close to the median Wall Street analysts’ upside estimate of 22%, based on 37 analysts covering the stock.

AppLovin Corporation (NASDAQ:APP) is one of the 10 Best AI Stocks to Watch in July.

The next important catalyst for AppLovin Corporation (NASDAQ:APP) is its second-quarter fiscal year 2026 earnings, scheduled to be reported on August 5 after the U.S. market closes. As per the company’s previously provided outlook, revenue for the quarter is expected to range from $1.815 billion to $1.945 billion. Adjusted EBITDA is forecasted to be between $1.615 billion and $1.645 billion. This represents an adjusted EBITDA margin of 84%-85%. In addition, the company expects a temporary increase in sales and marketing expenses as it supports the launch of the self-serve platform. Given that the stock responded well to the previous earnings and the expanded adoption of AXON 2.0, investors will expect similar performance this time as well, making the stock worth buying as an AI pick for the month of July.

AppLovin Corporation (NASDAQ:APP) is a technology company that provides AI-powered software solutions designed to help businesses, primarily mobile app developers, grow by acquiring users and monetizing their apps.

While we acknowledge the risk and potential of APP as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than APP and that has 10,000% upside potential, check out our report about the cheapest AI stock.

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