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Benzinga
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AppLovin's Valuation Reflects High Expectations For Monetization Expansion: Analyst

1. Needham analyst reiterated Hold rating on AppLovin Corp. APP. 2. Axon 2 showed a 3% growth in websites using the ad optimizer. 3. Seven websites churned, but two businesses shut down. 4. AppLovin projected Q2 revenue of $1.21 billion and EPS of $1.86. 5. Analyst noted AppLovin's valuation is now among the highest covered.

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FAQ

Why Neutral?

While Axon 2 shows modest growth, the churned websites and expensive valuation temper expectations.

How important is it?

Given the Hold rating and churn issues, market response may vary but signals caution.

Why Short Term?

Recent churn and slowing growth metrics could influence short-term investor sentiment.

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