Zacks Research Downgrades AppLovin (NASDAQ:APP) to Hold

AppLovin (NASDAQ:APP) was downgraded by investment analysts at Zacks Research from a “strong-buy” rating to a “hold” rating in a research note issued on Thursday,Zacks.com reports.

A number of other research firms have also recently issued reports on APP. The Goldman Sachs Group dropped their price target on shares of AppLovin from $710.00 to $585.00 and set a “neutral” rating on the stock in a research note on Thursday. Wedbush boosted their target price on shares of AppLovin from $465.00 to $640.00 and gave the stock an “outperform” rating in a research note on Thursday. Wells Fargo & Company decreased their price target on shares of AppLovin from $735.00 to $543.00 and set an “overweight” rating on the stock in a research note on Thursday. BTIG Research cut their price objective on AppLovin from $771.00 to $640.00 and set a “buy” rating for the company in a research note on Thursday. Finally, Jefferies Financial Group decreased their target price on AppLovin from $860.00 to $700.00 and set a “buy” rating on the stock in a research report on Thursday. Twenty research analysts have rated the stock with a Buy rating, four have given a Hold rating and one has issued a Sell rating to the company’s stock. According to data from MarketBeat, the company currently has a consensus rating of “Moderate Buy” and a consensus price target of $651.77.

AppLovin Price Performance

Shares of AppLovin stock opened at $391.55 on Thursday. The firm has a market cap of $132.32 billion, a PE ratio of 40.16, a P/E/G ratio of 1.20 and a beta of 2.49. AppLovin has a twelve month low of $200.50 and a twelve month high of $745.61. The company has a quick ratio of 3.25, a current ratio of 3.32 and a debt-to-equity ratio of 1.65. The business has a 50-day moving average price of $596.51 and a 200 day moving average price of $570.32.

AppLovin (NASDAQ:APP) last issued its quarterly earnings data on Wednesday, February 11th. The company reported $3.24 EPS for the quarter, beating the consensus estimate of $2.89 by $0.35. The company had revenue of $1.66 billion for the quarter, compared to analyst estimates of $1.61 billion. AppLovin had a return on equity of 245.64% and a net margin of 57.42%.AppLovin’s quarterly revenue was up 66.0% compared to the same quarter last year. During the same period last year, the company earned $1.73 earnings per share. Sell-side analysts predict that AppLovin will post 6.87 earnings per share for the current fiscal year.

Insider Buying and Selling at AppLovin

In related news, Director Dawson Alyssa Harvey sold 150 shares of the stock in a transaction on Monday, December 8th. The stock was sold at an average price of $693.32, for a total transaction of $103,998.00. Following the sale, the director owned 2,829 shares of the company’s stock, valued at $1,961,402.28. This trade represents a 5.04% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Also, insider Victoria Valenzuela sold 7,609 shares of AppLovin stock in a transaction dated Thursday, December 18th. The stock was sold at an average price of $657.13, for a total value of $5,000,102.17. Following the sale, the insider owned 277,110 shares of the company’s stock, valued at approximately $182,097,294.30. This represents a 2.67% decrease in their position. The SEC filing for this sale provides additional information. Insiders sold 187,786 shares of company stock worth $100,914,925 over the last ninety days. 13.66% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On AppLovin

Hedge funds and other institutional investors have recently made changes to their positions in the business. Lazard Freres Gestion S.A.S. bought a new stake in AppLovin during the third quarter worth about $2,514,000. Mediolanum International Funds Ltd grew its position in AppLovin by 73.5% during the 3rd quarter. Mediolanum International Funds Ltd now owns 76,736 shares of the company’s stock worth $54,664,000 after acquiring an additional 32,510 shares during the last quarter. Thames Capital Management LLC increased 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 purchasing an additional 8,925 shares in the last quarter. CIBC Asset Management Inc raised its position in AppLovin by 14.8% in the 3rd quarter. CIBC Asset Management Inc now owns 117,126 shares of the company’s stock valued at $84,160,000 after purchasing an additional 15,074 shares during the last quarter. Finally, Rakuten Securities Inc. boosted its stake in AppLovin by 118.0% in the third quarter. Rakuten Securities Inc. now owns 10,540 shares of the company’s stock worth $7,573,000 after purchasing an additional 5,705 shares in the last quarter. Hedge funds and other institutional investors own 41.85% of the company’s stock.

Trending Headlines about AppLovin

Here are the key news stories impacting AppLovin this week:

• Positive Sentiment: Q4 beat and raise — AppLovin reported stronger‑than‑expected Q4 revenue and EPS and issued 2026 guidance above Street estimates, giving investors a fundamentals‑driven reason to buy the stock. AppLovin (APP) Q4 Earnings and Revenues Surpass Estimates
• Positive Sentiment: Outstanding margins and cash flow — management reported ~84% adjusted EBITDA margins and very high free‑cash‑flow conversion, highlighting durable profitability that supports a premium valuation. AppLovin Rides on Margin Power: Here’s What You Should Know
• Positive Sentiment: Analyst support and buybacks — several firms reaffirmed or raised targets (and management disclosed large buybacks / cash generation commentary), which helps underwrite the rebound narrative. AppLovin price target raised by Wedbush
• Neutral Sentiment: Mixed analyst moves — although many shops kept Buy/Outperform ratings, several groups trimmed price targets after the volatility; this creates both support and room for further target revisions. Wells Fargo price target change and analyst notes
• Neutral Sentiment: Short‑interest data appears noisy/insignificant in recent reports (entries show zero/NaN), so shorting pressure doesn’t explain today’s move. (No meaningful short interest link available.)
• Negative Sentiment: Competition and AI fears — investors remain worried about potential competition (CloudX) and whether large platforms like Meta could encroach on AppLovin’s adtech niche; that fear helped trigger sharp earlier selloffs. AppLovin Plunges 18% Despite Blowout Earnings as AI Fears Rule
• Negative Sentiment: Broader software/AI rotation — the market‑wide re‑pricing of software names and headlines about a sector pullback have pressured APP despite the company’s strong quarter, prolonging volatility. Tech Stocks Down 50%: Buy the Dip or a Major Market Shift?
• Negative Sentiment: Market panic narrative — several commentators say recent selling was driven more by fear than fundamentals, meaning sentiment swings can still produce abrupt downside even after good results. AppLovin drops over competitor concerns, but analysts highlight positive growth drivers

About AppLovin

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.