APP Vs CELH Vs BROS Vs AXON: Retail Traders Are Most Interested In Buying Post-Earnings Dips Of These 2 Stocks

• Retail traders are treating recent post-earnings declines as buying opportunities, favoring companies with strong long-term growth potential. 
• A Stocktwits poll ranked AppLovin first (33%) and Dutch Bros second (32%), followed by Celsius (21%) and Axon Enterprise (14%).
• Scotiabank and Wedbush maintained bullish ratings on AppLovin despite lowering their price targets. 

Growth stocks including AppLovin (APP), Dutch Bros (BROS), Celsius Holdings (CELH) and Axon Enterprise (AXON) took a hit after second-quarter (Q2) earnings, but retail investors are hunting for opportunities. AppLovin and Dutch Bros emerged as the top dip-buying targets, with traders betting on AI-powered advertising growth and aggressive store expansion despite concerns over margins and valuations. 

Dip Buyers Focus On AI And Coffee Growth

Retail traders see the recent stock drops as buying opportunities, looking past short-term cost and margin pressures to focus on long-term growth in AI and consumer businesses.

A Stocktwits poll showed that retail investors were most leaned toward buying AppLovin and Dutch Bros after their post-earnings declines. AppLovin received 33% of the votes, while Dutch Bros followed closely with 32%, making them the top two choices among the stocks polled. 

Celsius finished third in the poll as investors weighed its strong Q2 revenue of $817.9 million against lower profits due to higher promotional and operating costs. Axon Enterprise received 14% of the votes, the lowest among the four companies, as higher component costs hurt margins despite reporting $904.3 million in revenue. 

Wall Street Cuts AppLovin Price Targets But Remains Bullish On AI Growth 

AppLovin stock sank 19% on Thursday as weak Q2 revenue and outlook weighed on the stock. CEO Adam Foroughi linked the softness to AI model upgrade timing, not demand weakness, while citing record advertiser spending and a strong Q3 start. 

Scotiabank and Wedbush analysts trimmed their price targets, though both firms maintained bullish ratings and pointed to long-term growth opportunities.

Scotiabank reduced its price target on AppLovin to $515 from $775 while keeping an ‘Outperform’ rating. The firm said the quarter’s weakness appeared tied to the timing of AI model improvements rather than a broader deterioration in the business. 

Wedbush also lowered its AppLovin price target, moving it to $610 from $640, but retained an ‘Outperform’ recommendation. The firm highlighted continued expansion in AppLovin’s gaming business, growth from its consumer advertising platform and the company’s ability to maintain a competitive advantage through its AI infrastructure.

Dutch Bros Gains Support From Expansion Bulls

Dutch Bros stock dropped 18% in Thursday’s session despite both Q2 revenue and earnings coming in above Street expectations. also became a favored target among investors looking beyond near-term pressure. Higher commodity expenses and expansion-related costs weighed on the coffee-chain’s sentiment, but traders pointed to store growth plans and improving sales trends as reasons to consider the decline attractive.

The company received mixed reactions from Wall Street, with analysts lowering price targets but maintaining positive views on it’s long-term growth prospects.

DA Davidson reduced its price target for Dutch Bros to $85 from $90 while keeping a ‘Buy’ rating, saying the company’s quarterly performance showed strength in key areas despite the market’s negative response. 

The firm noted strong same-store sales, solid store productivity and better-than-expected EBITDA performance, supporting confidence that the recent pullback may be temporary.

RBC Capital analyst Logan Reich also lowered the price target to $70 from $75, while maintaining an ‘Outperform’ rating. The analyst pointed to improved margins, stronger performance from newer locations and progress in customer targeting efforts as reasons for optimism.

So far this year, APP, BROS, AXON and CELH stocks have declined between 8% and 50%.

Also See: WEN Stock Rises Overnight Ahead Of Q2 Results: Retail Bulls Eagerly Hope For ‘Short Squeeze’

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