AppLovin (NASDAQ:APP) Posts Quarterly Earnings Results, Meets Estimates

AppLovin (NASDAQ:APP) released its quarterly earnings results on Tuesday. The company reported $3.76 earnings per share for the quarter, meeting analysts’ consensus estimates of $3.76, FiscalAI reports. The business had revenue of $1.92 billion during the quarter, compared to analyst estimates of $1.94 billion. AppLovin had a net margin of 64.29% and a return on equity of 219.37%. The business’s revenue was up 52.8% on a year-over-year basis. During the same period last year, the business earned $2.39 EPS.

AppLovin Trading Down 0.5%

Shares of AppLovin stock opened at $417.80 on Thursday. The company’s fifty day moving average price is $484.79 and its two-hundred day moving average price is $466.38. The firm has a market capitalization of $140.36 billion, a PE ratio of 35.89, a price-to-earnings-growth ratio of 0.69 and a beta of 2.54. AppLovin has a 52-week low of $359.00 and a 52-week high of $745.61. The company has a debt-to-equity ratio of 1.49, a current ratio of 3.24 and a quick ratio of 3.24.

Insiders Place Their Bets

In related news, Director Eduardo Vivas sold 163,910 shares of the firm’s stock in a transaction that occurred on Tuesday, June 16th. The stock was sold at an average price of $504.06, for a total transaction of $82,620,474.60. Following the completion of the transaction, the director owned 6,785,087 shares in the company, valued at $3,420,090,953.22. This trade represents a 2.36% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through the SEC website. Also, CTO Vasily Shikin sold 62,804 shares of the company’s stock in a transaction on Friday, May 22nd. The shares were sold at an average price of $484.42, for a total value of $30,423,513.68. Following the completion of the sale, the chief technology officer owned 3,189,739 shares in the company, valued at $1,545,173,366.38. This trade represents a 1.93% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders sold a total of 393,000 shares of company stock worth $197,297,363 in the last 90 days. 12.81% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On AppLovin

Several hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. Mcguire Capital Advisors Inc. acquired a new position in AppLovin during the 4th quarter worth approximately $27,000. Swiss RE Ltd. acquired a new position in AppLovin in the 4th quarter valued at about $40,000. Rossby Financial LCC boosted its holdings in shares of AppLovin by 6,900.0% during the fourth quarter. Rossby Financial LCC now owns 70 shares of the company’s stock worth $47,000 after acquiring an additional 69 shares during the period. Caitong International Asset Management Co. Ltd grew its position in shares of AppLovin by 347.1% in the fourth quarter. Caitong International Asset Management Co. Ltd now owns 76 shares of the company’s stock valued at $51,000 after purchasing an additional 59 shares during the last quarter. Finally, Strive Asset Management LLC acquired a new stake in AppLovin during the 3rd quarter worth approximately $61,000. Institutional investors and hedge funds own 41.85% of the company’s stock.

Key Stories Impacting AppLovin

Here are the key news stories impacting AppLovin this week:

• Positive Sentiment: AppLovin reported revenue of approximately $1.924 billion, up 52.8% year over year, and earnings of $3.76 per share, in line with consensus estimates. The company also delivered an 83.8% adjusted EBITDA margin, highlighting continued operating leverage. AppLovin Announces Second Quarter 2026 Financial Results
• Positive Sentiment: The company’s financial position remains supportive of expansion, with roughly $3 billion in cash, $3.5 billion in debt and strong interest coverage. AppLovin is also opening its AXON Ads platform to self-service customers, potentially expanding beyond gaming into areas such as fintech and connected TV. AppLovin: A Dip We Were All Waiting For
• Positive Sentiment: Needham, BTIG and Bank of America retained buy ratings, although each reduced its price target. The lower targets still imply upside from the referenced $417.80 share price.
• Neutral Sentiment: Analyst sentiment became more divided. Wells Fargo reaffirmed an Equal Weight rating and cut its target to $357, while other firms continued to recommend buying the stock with materially lower targets.
• Neutral Sentiment: AppLovin said an SEC investigation involving the company has been closed, removing one potential overhang, although the news received less attention than the earnings disappointment. APP Stock Plunges After Revenue Miss and Soft Guidance
• Negative Sentiment: Second-quarter revenue fell short of Wall Street’s roughly $1.94 billion estimate, despite exceptional year-over-year growth. For the third quarter, management guided to $2.055 billion–$2.085 billion of revenue, with the midpoint slightly below the approximately $2.08 billion consensus. AppLovin Reports Second Quarter Revenue Below Wall Street Estimates
• Negative Sentiment: The revenue miss and cautious guidance overshadowed the earnings performance, triggering a large after-hours selloff and prompting concerns that AppLovin’s very high growth expectations had become difficult to exceed. AppLovin Second-Quarter Sales Gain and Soft Third-Quarter Outlook

Wall Street Analyst Weigh In

A number of analysts have weighed in on the stock. Bank of America dropped their target price on shares of AppLovin from $705.00 to $430.00 and set a “buy” rating on the stock in a report on Thursday. BTIG Research decreased their target price on shares of AppLovin from $640.00 to $574.00 and set a “buy” rating for the company in a research report on Thursday. JPMorgan Chase & Co. boosted their price target on shares of AppLovin from $500.00 to $515.00 and gave the stock a “neutral” rating in a research report on Thursday, May 7th. KeyCorp set a $775.00 price target on AppLovin in a research note on Wednesday, June 10th. Finally, Raymond James Financial initiated coverage on shares of AppLovin in a research note on Monday, June 29th. They set a “strong-buy” rating and a $640.00 target price for the company. Two analysts have rated the stock with a Strong Buy rating, fifteen have assigned a Buy rating and seven have given a Hold rating to the company. According to MarketBeat.com, AppLovin has an average rating of “Moderate Buy” and an average target price of $612.09.

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.