AppLovin (NASDAQ:APP) Trading Up 1.9% – What’s Next?

AppLovin Corporation (NASDAQ:APP)’s stock price shot up 1.9% during trading on Thursday . The company traded as high as $415.44 and last traded at $412.00. 5,440,575 shares changed hands during mid-day trading, a decline of 21% from the average session volume of 6,895,238 shares. The stock had previously closed at $404.39.

Trending Headlines about AppLovin

Here are the key news stories impacting AppLovin this week:

• Positive Sentiment: Record results and margin strength are supporting sentiment — AppLovin reported a blowout quarter (record revenue, high margins, $3.24 EPS) that beats expectations and underpins bullish analyst commentary. AppLovin Stock Jumps. Why the Market’s Suddenly Excited About It.
• Positive Sentiment: Reports that AppLovin is pursuing its own social media/network product (after a failed TikTok bid) are being viewed as a potential growth/monetization lever, helping drive buying interest. AppLovin Stock Rallies After Rough Start To Year. Here’s Why.
• Positive Sentiment: Analysts and commentary pieces are turning bullish following the strong results, which supports a higher valuation narrative for a company that has evolved into a profitable ad platform. Analysts Bullish On AppLovin Corporation (APP) Outlook Following Impressive Results
• Neutral Sentiment: Macro/newsflow context: broader market conditions and upcoming economic releases are influencing trading; some market summaries highlight AppLovin among movers but focus is also on GDP and inflation data. 5 Things to Know Before the Stock Market Opens
• Neutral Sentiment: Short interest data reported in some feeds appears inconsistent/erroneous (zeros and NaN), so don’t treat those prints as a reliable signal for squeeze risk. (Data posted 2/18–2/19).
• Negative Sentiment: Regulatory risk: Bloomberg reports the SEC’s investigation into AppLovin remains active — this ongoing probe raises uncertainty and could pressure sentiment until resolved. SEC probe involving AppLovin still active, Bloomberg News reports
• Negative Sentiment: Despite its best quarter, the stock endured a sharp pullback recently — analysts and pieces flag competition (Meta, others) and sector weakness as reasons the market punished shares, highlighting execution and competitive risk. How Low Can AppLovin Stock Go? APP Declines 29% in a Month

Analyst Upgrades and Downgrades

Several analysts have commented on APP shares. Wells Fargo & Company reduced their price objective on AppLovin from $735.00 to $543.00 and set an “overweight” rating for the company in a research note on Thursday, February 12th. Citigroup cut their price target on AppLovin from $820.00 to $710.00 and set a “buy” rating for the company in a research note on Thursday, February 12th. Scotiabank lifted their price objective on shares of AppLovin from $750.00 to $775.00 and gave the company an “outperform” rating in a research report on Thursday, February 12th. Jefferies Financial Group dropped their price objective on shares of AppLovin from $860.00 to $700.00 and set a “buy” rating on the stock in a research note on Thursday, February 12th. Finally, JPMorgan Chase & Co. lifted their target price on shares of AppLovin from $425.00 to $650.00 and gave the company a “neutral” rating in a report on Thursday, November 6th. Twenty analysts have rated the stock with a Buy rating, four have issued a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat, the stock currently has a consensus rating of “Moderate Buy” and an average price target of $651.77.

AppLovin Trading Up 1.6%

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’s fifty day moving average is $566.47 and its 200 day moving average is $571.11. The stock has a market cap of $141.49 billion, a PE ratio of 42.94, a P/E/G ratio of 0.85 and a beta of 2.49.

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

Insider Buying and Selling at AppLovin

In related news, insider Victoria Valenzuela sold 7,609 shares of the stock in a transaction dated Thursday, December 18th. The shares were sold at an average price of $657.13, for a total value of $5,000,102.17. Following the sale, the insider directly 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 sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, Director Dawson Alyssa Harvey sold 150 shares of the firm’s stock in a transaction dated Monday, December 8th. The shares were sold at an average price of $693.32, for a total transaction of $103,998.00. Following the transaction, 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. Additional details regarding this sale are available in the official SEC disclosure. Over the last 90 days, insiders have sold 87,402 shares of company stock valued at $48,611,888. Insiders own 13.66% of the company’s stock.

Institutional Inflows and Outflows

Hedge funds have recently modified their holdings of the business. Lazard Freres Gestion S.A.S. acquired a new stake in AppLovin during the 3rd quarter worth approximately $2,514,000. Mediolanum International Funds Ltd increased its position in shares of AppLovin by 73.5% in the third 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 in the last quarter. Thames Capital Management LLC increased its position in shares of AppLovin by 114.8% in the third quarter. Thames Capital Management LLC now owns 16,702 shares of the company’s stock worth $12,001,000 after acquiring an additional 8,925 shares in the last quarter. CIBC Asset Management Inc raised its stake in shares of 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 acquiring an additional 15,074 shares during the period. Finally, Rakuten Securities Inc. lifted its holdings in shares of AppLovin by 118.0% during the 3rd quarter. Rakuten Securities Inc. now owns 10,540 shares of the company’s stock valued at $7,573,000 after acquiring an additional 5,705 shares in the last quarter. 41.85% of the stock is owned by hedge funds and other institutional investors.

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.