AppLovin Q2 Earnings Fallout and Non-Gaming Pivot

AppLovin reported Q2 2026 revenue $1.924B (+53% YoY), EPS $3.76 beat, but slight miss on revenue estimate. Stock dropped 28% after hours, 38% YTD. SEC probe closed. Multiple analyst downgrades including BofA to Neutral with 23% growth forecast. Non-gaming pivot narrative gaining traction. E-commerce ad share rising to 11.1%. First guidance miss since IPO ($16M shortfall) but strong Q3 guidance. CEO attributes miss to timing; ML model upgrade live.