Noting the firm tracks monthly IAP revenues of 500-plus mobile games across five video game stocks on Sensor Tower for intra-quarter reads, BofA analyst Omar Dessouky says that after two consecutive years of year-over-year declines, the U.S. mobile gaming market has returned to growth. For AppLovin (APP), the firm says 3P estimates suggest -4% quarter-over-quarter in Q4 Apps revenue, below the Street at +2% quarter-over-quarter. The sequential decline is likely a surprise to investors, BofA adds, as Q4 typically marks peak season in mobile gaming. While the gaming portfolio’s weakness by itself is hardly a concern at all, it nevertheless introduces a nuance to Q4 setup, as it is unclear if management had assumed normal seasonality in its consolidated Q4 guidance, the firm argues. BofA has a Buy rating on the shares with a price target of $375.
Stay Ahead of the Market:
- Discover outperforming stocks and invest smarter with Top Smart Score Stocks
- Filter, analyze, and streamline your search for investment opportunities using Tipranks' Stock Screener
Published first on TheFly – the ultimate source for real-time, market-moving breaking financial news. Try Now>>
See today’s best-performing stocks on TipRanks >>
Read More on APP:
- QQQ ETF News, 1/1/2025
- QQQ ETF Update, 12/26/2024
- QQQ ETF Update, 12/23/2024
- AppLovin Stock (APP) May Struggle for More Momentum after 687% Rally
- AppLovin price target raised to $450 from $385 at Loop Capital
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
