AppLovin (NASDAQ:APP) Shares Gap Down After Analyst Downgrade

AppLovin Corporation (NASDAQ:APP) shares gapped down prior to trading on Thursday after Wells Fargo & Company lowered their price target on the stock from $735.00 to $543.00. The stock had previously closed at $456.81, but opened at $404.00. Wells Fargo & Company currently has an overweight rating on the stock. AppLovin shares last traded at $383.1830, with a volume of 5,688,573 shares changing hands.

APP has been the topic of several other reports. BTIG Research dropped their target price on AppLovin from $771.00 to $640.00 and set a “buy” rating on the stock in a research report on Thursday. Citigroup reduced their target price on shares of AppLovin from $850.00 to $820.00 and set a “buy” rating for the company in a research note on Wednesday, November 12th. Jefferies Financial Group boosted their target price on shares of AppLovin from $800.00 to $860.00 and gave the stock a “buy” rating in a research report on Thursday, December 11th. Morgan Stanley set a $800.00 price target on shares of AppLovin and gave the company an “overweight” rating in a report on Wednesday, February 4th. Finally, Scotiabank lifted their price objective on shares of AppLovin from $575.00 to $750.00 and gave the company an “outperform” rating in a research note on Thursday, November 6th. One equities research analyst has rated the stock with a Strong Buy rating, twenty have given a Buy rating, three have given a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat, AppLovin currently has a consensus rating of “Moderate Buy” and an average target price of $664.73.

Insider Buying and Selling

In related news, CTO Vasily Shikin sold 27,143 shares of the business’s stock in a transaction on Monday, November 24th. The shares were sold at an average price of $545.38, for a total transaction of $14,803,249.34. Following the transaction, the chief technology officer owned 3,323,681 shares of the company’s stock, valued at approximately $1,812,669,143.78. The trade was a 0.81% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available through this hyperlink. Also, CEO Arash Adam Foroughi sold 30,888 shares of the company’s stock in a transaction on Friday, November 21st. The shares were sold at an average price of $520.29, for a total transaction of $16,070,717.52. Following the transaction, the chief executive officer owned 2,553,161 shares of the company’s stock, valued at approximately $1,328,384,136.69. The trade was a 1.20% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. In the last 90 days, insiders sold 187,786 shares of company stock valued at $100,914,925. Insiders own 13.66% of the company’s stock.

Key AppLovin News

Here are the key news stories impacting AppLovin this week:

• Positive Sentiment: Q4 earnings beat — AppLovin reported $3.24 EPS vs. $2.89 expected and revenue of $1.66B (up 66% YoY), showing strong profitability and margin expansion. BusinessWire: Q4 Results
• Positive Sentiment: Q1 guidance tops street — AppLovin issued revenue guidance of about $1.7B–$1.8B for Q1, above the ~ $1.6B consensus, which is constructive for near-term top-line visibility. Earnings Release / Guidance
• Positive Sentiment: Analyst backing remains — Needham reaffirmed a “buy” rating with a $700 target, signaling continued analyst confidence in AppLovin’s long-term growth thesis. Benzinga: Needham Rating
• Neutral Sentiment: Mixed analyst positioning — BTIG trimmed its price target from $771 to $640 but kept a buy rating; that narrows upside expectations even as the stock remains a buy for some firms. The Fly: BTIG PT Cut
• Neutral Sentiment: Management tone — CEO downplayed AI-related risks on the call, an attempt to reassure investors about the company’s strategic positioning in AI-driven ad products. MSN: CEO Comments
• Negative Sentiment: Market reaction: sell-the-news / demand worries — Despite beats, several outlets and traders flagged softer-than-expected advertising demand, heightened competition and questions about sustainable growth; that commentary drove a post-earnings pullback. Reuters: Revenue / Competition Concerns
• Negative Sentiment: Coverage and sentiment noise — Multiple headlines (Investopedia, MarketWatch, Seeking Alpha) emphasise the stock slide and investor disappointment post-earnings, which can amplify volatility and short-term selling pressure. Investopedia: Market Headlines

Hedge Funds Weigh In On AppLovin

Several institutional investors and hedge funds have recently added to or reduced their stakes in APP. Concurrent Investment Advisors LLC grew its position in shares of AppLovin by 31.5% during the second quarter. Concurrent Investment Advisors LLC now owns 4,646 shares of the company’s stock valued at $1,627,000 after purchasing an additional 1,114 shares in the last quarter. Lazard Freres Gestion S.A.S. bought a new position in AppLovin during the third quarter valued at approximately $2,514,000. Mediolanum International Funds Ltd grew its holdings in AppLovin by 73.5% during the 3rd quarter. Mediolanum International Funds Ltd now owns 76,736 shares of the company’s stock valued at $54,664,000 after buying an additional 32,510 shares in the last quarter. Thames Capital Management LLC grew its holdings in AppLovin by 114.8% during the 3rd quarter. Thames Capital Management LLC now owns 16,702 shares of the company’s stock valued at $12,001,000 after buying an additional 8,925 shares in the last quarter. Finally, CIBC Asset Management Inc increased its stake in AppLovin by 14.8% in the 3rd quarter. CIBC Asset Management Inc now owns 117,126 shares of the company’s stock worth $84,160,000 after acquiring an additional 15,074 shares during the last quarter. 41.85% of the stock is currently owned by institutional investors.

AppLovin Stock Down 16.8%

The company has a debt-to-equity ratio of 2.38, a quick ratio of 3.25 and a current ratio of 3.25. The firm has a market capitalization of $128.51 billion, a PE ratio of 46.50, a PEG ratio of 1.56 and a beta of 2.49. The company has a fifty day moving average price of $608.86 and a 200-day moving average price of $571.60.

AppLovin (NASDAQ:APP) last announced its quarterly earnings results on Wednesday, February 11th. The company reported $3.24 earnings per share for the quarter, topping the consensus estimate of $2.89 by $0.35. The company had revenue of $1.66 billion for the quarter, compared to analysts’ expectations of $1.61 billion. AppLovin had a net margin of 51.27% and a return on equity of 258.49%. AppLovin’s quarterly revenue was up 66.0% on a year-over-year basis. During the same quarter in the previous year, the business posted $1.73 earnings per share. As a group, analysts expect that AppLovin Corporation will post 6.87 earnings per share for the current year.

AppLovin Company Profile

AppLovin Corporation is a Palo Alto–based mobile technology company that provides software and services to help app developers grow and monetize their businesses. The company operates a data-driven advertising and marketing platform that connects app publishers and advertisers, delivering tools for user acquisition, monetization, analytics and creative optimization. AppLovin’s technology is integrated into a broad set of mobile applications through software development kits (SDKs) and ad products designed to maximize revenue and engagement for developers.

Key components of AppLovin’s offering include an ad mediation and exchange platform that enables publishers to manage and monetize inventory across multiple demand sources, and a user-acquisition platform that helps advertisers target and scale campaigns.