AppLovin (NASDAQ:APP) Stock Price Down 2.5% – What’s Next?

AppLovin Corporation (NASDAQ:APP)’s share price was down 2.5% during trading on Tuesday . The stock traded as low as $522.00 and last traded at $526.01. Approximately 3,877,366 shares were traded during mid-day trading, a decline of 45% from the average daily volume of 7,102,985 shares. The stock had previously closed at $539.27.

Wall Street Analyst Weigh In

Several analysts have recently weighed in on the company. Morgan Stanley lifted their price objective on AppLovin from $480.00 to $750.00 and gave the stock an “overweight” rating in a report on Monday, September 29th. Royal Bank Of Canada lifted their price target on shares of AppLovin from $700.00 to $750.00 and gave the stock an “outperform” rating in a research note on Thursday, November 6th. UBS Group increased their price objective on shares of AppLovin from $810.00 to $840.00 and gave the company a “buy” rating in a research note on Thursday, November 6th. Benchmark lifted their target price on shares of AppLovin from $640.00 to $700.00 and gave the company a “buy” rating in a research report on Thursday, November 6th. Finally, Needham & Company LLC reissued a “hold” rating on shares of AppLovin in a research note on Tuesday, August 26th. Twenty-one equities research analysts have rated the stock with a Buy rating, four have issued a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat.com, the stock currently has an average rating of “Moderate Buy” and a consensus target price of $658.27.

AppLovin Stock Down 2.5%

The company has a current ratio of 3.25, a quick ratio of 3.25 and a debt-to-equity ratio of 2.38. The stock has a market capitalization of $177.77 billion, a P/E ratio of 63.84, a P/E/G ratio of 2.99 and a beta of 2.50. The firm’s fifty day moving average is $614.86 and its 200-day moving average is $466.09.

AppLovin (NASDAQ:APP) last posted its quarterly earnings data on Wednesday, November 5th. The company reported $2.45 earnings per share for the quarter, topping the consensus estimate of $2.34 by $0.11. The company had revenue of $1.41 billion during the quarter, compared to analyst estimates of $1.34 billion. AppLovin had a net margin of 51.27% and a return on equity of 258.49%. The company’s revenue was up 68.2% on a year-over-year basis. During the same quarter last year, the business posted $1.29 earnings per share. AppLovin has set its Q4 2025 guidance at EPS. As a group, equities research analysts predict that AppLovin Corporation will post 6.87 earnings per share for the current year.

Insiders Place Their Bets

In other news, CEO Arash Adam Foroughi sold 90,000 shares of the stock in a transaction on Thursday, August 21st. The stock was sold at an average price of $421.04, for a total transaction of $37,893,600.00. Following the sale, the chief executive officer owned 2,620,054 shares in the company, valued at approximately $1,103,147,536.16. This represents a 3.32% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, insider Victoria Valenzuela sold 35,000 shares of AppLovin stock in a transaction dated Thursday, September 4th. The shares were sold at an average price of $502.23, for a total value of $17,578,050.00. Following the completion of the transaction, the insider directly owned 269,955 shares of the company’s stock, valued at $135,579,499.65. This represents a 11.48% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders sold a total of 484,338 shares of company stock worth $243,010,812 in the last three months. Company insiders own 13.66% of the company’s stock.

Institutional Trading of AppLovin

Several hedge funds have recently modified their holdings of the stock. Hilltop National Bank acquired a new position in AppLovin during the 2nd quarter worth $26,000. LFA Lugano Financial Advisors SA bought a new stake in shares of AppLovin during the second quarter worth $26,000. SouthState Corp acquired a new position in shares of AppLovin during the first quarter valued at $29,000. Chilton Capital Management LLC bought a new position in AppLovin in the third quarter valued at about $29,000. Finally, Activest Wealth Management increased its position in AppLovin by 760.0% in the third quarter. Activest Wealth Management now owns 43 shares of the company’s stock worth $31,000 after purchasing an additional 38 shares during the period. 41.85% of the stock is owned by institutional investors.

About AppLovin

AppLovin Corporation engages in building a software-based platform for advertisers to enhance the marketing and monetization of their content in the United States and internationally. It operates through two segments, Software Platform and Apps. The company's software solutions include AppDiscovery, a marketing software solution, which matches advertiser demand with publisher supply through auctions; MAX, an in-app bidding software that optimizes the value of a publisher's advertising inventory by running a real-time competitive auction; Adjust, a measurement and analytics marketing platform that provides marketers with the visibility, insights, and tools needed to grow their apps from early stage to maturity; and Wurl, a connected TV platform, which distributes streaming video for content companies and provides advertising and publishing solutions through its AdPool, ContentDiscovery, and Global FAST Pass products.