AppLovin (NASDAQ:APP) Price Target Lowered to $575.00 at Royal Bank Of Canada

AppLovin (NASDAQ:APP) had its target price dropped by investment analysts at Royal Bank Of Canada from $700.00 to $575.00 in a report released on Thursday,Benzinga reports. The firm currently has an “outperform” rating on the stock. Royal Bank Of Canada’s price target would suggest a potential upside of 67.16% from the company’s previous close.

Other research analysts have also issued research reports about the stock. Wells Fargo & Company reiterated an “equal weight” rating and set a $357.00 price objective (down from $575.00) on shares of AppLovin in a research note on Thursday. Morgan Stanley restated an “overweight” rating on shares of AppLovin in a report on Wednesday, May 27th. BTIG Research dropped their price target on shares of AppLovin from $640.00 to $574.00 and set a “buy” rating on the stock in a research report on Thursday. Piper Sandler cut shares of AppLovin from an “overweight” rating to a “neutral” rating and lowered their price objective for the stock from $665.00 to $385.00 in a research note on Thursday. Finally, Benchmark reduced their target price on shares of AppLovin from $775.00 to $500.00 and set a “buy” rating for the company in a report on Thursday. Two investment analysts have rated the stock with a Strong Buy rating, fifteen have assigned a Buy rating and seven have issued a Hold rating to the company. Based on data from MarketBeat, the stock presently has an average rating of “Moderate Buy” and a consensus target price of $580.73.

AppLovin Stock Down 17.7%

Shares of AppLovin stock traded down $73.83 during trading on Thursday, reaching $343.98. The company had a trading volume of 9,825,014 shares, compared to its average volume of 5,682,482. The company has a market cap of $115.55 billion, a price-to-earnings ratio of 29.52, a price-to-earnings-growth ratio of 0.69 and a beta of 2.54. AppLovin has a fifty-two week low of $332.19 and a fifty-two week high of $745.61. The firm’s fifty day moving average is $484.79 and its 200-day moving average is $466.38. The company has a debt-to-equity ratio of 1.49, a quick ratio of 3.24 and a current ratio of 3.24.

AppLovin (NASDAQ:APP) last issued its earnings results on Tuesday, August 4th. The company reported $3.76 EPS for the quarter, meeting analysts’ consensus estimates of $3.76. AppLovin had a return on equity of 219.37% and a net margin of 64.29%.The company had revenue of $1.92 billion during the quarter, compared to the consensus estimate of $1.94 billion. During the same period in the previous year, the firm posted $2.39 earnings per share. AppLovin’s quarterly revenue was up 52.8% compared to the same quarter last year. On average, analysts anticipate that AppLovin will post 15.93 EPS for the current year.

Insiders Place Their Bets

In related news, CEO Arash Adam Foroughi sold 33,042 shares of the stock in a transaction dated Thursday, June 11th. The stock was sold at an average price of $486.95, for a total transaction of $16,089,801.90. Following the completion of the transaction, the chief executive officer directly owned 2,369,351 shares in the company, valued at approximately $1,153,755,469.45. This trade represents a 1.38% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, CFO Matthew Stumpf sold 9,052 shares of the business’s stock in a transaction that occurred on Thursday, May 28th. The stock was sold at an average price of $600.00, for a total value of $5,431,200.00. Following the transaction, the chief financial officer directly owned 177,450 shares in the company, valued at $106,470,000. This trade represents a 4.85% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold a total of 393,000 shares of company stock valued at $197,297,363 over the last three months. Company insiders own 12.81% of the company’s stock.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently bought and sold shares of APP. Belpointe Asset Management LLC raised its position in AppLovin by 24.7% in the second quarter. Belpointe Asset Management LLC now owns 4,063 shares of the company’s stock valued at $2,093,000 after purchasing an additional 805 shares during the last quarter. Fortis Capital Advisors LLC bought a new position in AppLovin during the 2nd quarter valued at $1,297,000. Soltis Investment Advisors LLC grew its holdings in shares of AppLovin by 6.4% in the second quarter. Soltis Investment Advisors LLC now owns 1,093 shares of the company’s stock valued at $563,000 after acquiring an additional 66 shares in the last quarter. Daymark Wealth Partners LLC purchased a new stake in shares of AppLovin during the 2nd quarter valued at $207,000. Finally, Mitchell Capital Management Co. raised its stake in shares of AppLovin by 2.5% during the 2nd quarter. Mitchell Capital Management Co. now owns 9,762 shares of the company’s stock worth $5,030,000 after purchasing an additional 241 shares during the period. 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 second-quarter revenue of approximately $1.924 billion, up 52.8% year over year, and earnings of $3.76 per share, in line with consensus and above the prior-year result. Adjusted EBITDA margin was reportedly 83.8%, highlighting continued operating leverage. AppLovin Announces Second Quarter 2026 Financial Results
• Positive Sentiment: Management attributed the revenue shortfall partly to the timing of model improvements and said live gains, consumer scaling and continued advertising-platform expansion could support stronger growth in the third quarter. APP Q2 Earnings Call Highlights Model Timing, Q3 Reacceleration
• Positive Sentiment: The balance sheet remains supportive of investment, with roughly $3 billion in cash and $3.5 billion in debt. AppLovin is also expanding AXON Ads through a self-serve offering aimed at new verticals such as fintech and connected TV, potentially increasing its addressable market. AppLovin: A Dip We Were All Waiting For
• Neutral Sentiment: AppLovin’s CFO said an SEC probe involving the company has been closed, removing a reported regulatory overhang, although the earnings reaction remained focused on operating results. APP Stock Plunges After Revenue Miss and Soft Guidance
• Negative Sentiment: Second-quarter revenue was below the approximately $1.94 billion analyst forecast. Because AppLovin’s valuation reflects very high growth expectations, the top-line miss overshadowed the strong profit performance. AppLovin Stock Falls on Q2 Revenue Miss
• Negative Sentiment: Third-quarter revenue guidance of roughly $2.055 billion to $2.085 billion was viewed as below Wall Street expectations at the midpoint, raising concerns that monetization growth may be temporarily slowing. AppLovin Second-Quarter Sales Gain, Gives Soft Third-Quarter Outlook
• Negative Sentiment: Several analysts reduced their price targets following the report, including Needham, BTIG, Bank of America and Wells Fargo. Although most maintained positive or neutral ratings, the cuts signal lower near-term expectations and reinforce investor caution. AppLovin Analysts Cut Their Forecasts Following Q2 Earnings

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.