Citigroup Cuts AppLovin (NASDAQ:APP) Price Target to $710.00

AppLovin (NASDAQ:APP) had its price objective lowered by investment analysts at Citigroup from $820.00 to $710.00 in a research note issued on Thursday,Benzinga reports. The brokerage currently has a “buy” rating on the stock. Citigroup’s target price would indicate a potential upside of 90.41% from the company’s current price.

Several other equities analysts have also commented on the stock. Deutsche Bank Aktiengesellschaft set a $705.00 price target on shares of AppLovin and gave the company a “buy” rating in a research note on Wednesday, October 22nd. BTIG Research reduced 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. The Goldman Sachs Group reduced their price target on shares of AppLovin from $710.00 to $585.00 and set a “neutral” rating for the company in a research report on Thursday. UBS Group set a $740.00 target price on shares of AppLovin in a report on Thursday. Finally, Weiss Ratings cut AppLovin from a “buy (b-)” rating to a “hold (c+)” rating in a research note on Thursday, January 15th. One equities research analyst has rated the stock with a Strong Buy rating, twenty have assigned a Buy rating, three have assigned a Hold rating and one has assigned a Sell rating to the company’s stock. Based on data from MarketBeat.com, the stock currently has a consensus rating of “Moderate Buy” and a consensus target price of $651.77.

AppLovin Stock Down 18.4%

Shares of NASDAQ APP traded down $83.94 during mid-day trading on Thursday, hitting $372.87. The company had a trading volume of 14,386,911 shares, compared to its average volume of 6,802,454. The company has a market capitalization of $126.01 billion, a PE ratio of 45.25, a price-to-earnings-growth ratio of 1.56 and a beta of 2.49. The business’s 50-day simple moving average is $608.86 and its 200 day simple moving average is $571.60. AppLovin has a 1-year low of $200.50 and a 1-year high of $745.61. The company has a debt-to-equity ratio of 2.38, a current ratio of 3.25 and a quick ratio of 3.25.

AppLovin (NASDAQ:APP) last announced its quarterly earnings data on Wednesday, February 11th. The company reported $3.24 earnings per share (EPS) for the quarter, beating the consensus estimate of $2.89 by $0.35. The business had revenue of $1.66 billion during the quarter, compared to analysts’ expectations of $1.61 billion. AppLovin had a return on equity of 258.49% and a net margin of 51.27%.The business’s quarterly revenue was up 66.0% compared to the same quarter last year. During the same quarter last year, the business posted $1.73 EPS. On average, analysts predict that AppLovin will post 6.87 earnings per share for the current year.

Insider Activity

In related news, CEO Arash Adam Foroughi sold 4,069 shares of the stock in a transaction dated Friday, November 21st. The stock was sold at an average price of $497.50, for a total transaction of $2,024,327.50. Following the transaction, the chief executive officer directly owned 2,998,948 shares in the company, valued at approximately $1,491,976,630. This represents a 0.14% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which can be accessed through this hyperlink. Also, Director Dawson Alyssa Harvey sold 150 shares of the firm’s stock in a transaction dated Monday, December 8th. The stock was sold at an average price of $693.32, for a total value of $103,998.00. Following the completion of the sale, the director directly owned 2,829 shares in the company, valued at approximately $1,961,402.28. The trade was a 5.04% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders sold a total of 187,786 shares of company stock valued at $100,914,925 over the last quarter. Insiders own 13.66% of the company’s stock.

Institutional Inflows and Outflows

Several hedge funds have recently added to or reduced their stakes in APP. Lazard Freres Gestion S.A.S. bought a new stake in shares of AppLovin in the 3rd quarter worth approximately $2,514,000. Mediolanum International Funds Ltd raised its stake in AppLovin by 73.5% during the 3rd quarter. Mediolanum International Funds Ltd now owns 76,736 shares of the company’s stock valued at $54,664,000 after acquiring an additional 32,510 shares in the last quarter. Thames Capital Management LLC increased its holdings in shares of AppLovin by 114.8% during the third 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 during the period. CIBC Asset Management Inc lifted its holdings in AppLovin by 14.8% in the third quarter. CIBC Asset Management Inc now owns 117,126 shares of the company’s stock worth $84,160,000 after purchasing an additional 15,074 shares during the period. Finally, Rakuten Securities Inc. increased its stake in 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 buying an additional 5,705 shares during the period. 41.85% of the stock is owned by hedge funds and other institutional investors.

Trending Headlines about AppLovin

Here are the key news stories impacting AppLovin this week:

• Positive Sentiment: Q4 results beat and management raised near-term revenue guidance — revenue $1.66B (up 66% y/y) and EPS $3.24 topped estimates; company gave Q1 revenue guidance above consensus, supporting the longer-term growth narrative. AppLovin Plunges 18% Despite Blowout Earnings as AI Fears Rule
• Positive Sentiment: Strong profitability and cash flow: reports highlight >80% adjusted EBITDA margins, very high gross margins, multi‑billion FCF generation and ~$2.6B of repurchases — fundamentals that bulls say justify buying the dip. AppLovin: This Sale Won’t Last
• Neutral Sentiment: Analyst reactions are mixed but generally constructive: several firms raised price targets (Scotiabank, Wedbush, RBC, Needham) while others trimmed targets (Wells Fargo, BTIG) — amplifying volatile trading as investors weigh near-term risks vs. long-term upside. Scotiabank Raises Price Target Wells Fargo Lowers Target
• Negative Sentiment: Sell‑off driven by AI and ad demand concerns — coverage and headlines indicate traders fear AI-driven shifts in ad spend/creative could pressure AppLovin’s ad marketplace despite the beat, triggering heavy profit‑taking. AppLovin Plunges 18% Despite Blowout Earnings as AI Fears Rule
• Negative Sentiment: Some reporting flagged softer-than-expected ad demand/competitive pressure on sales despite strong year-over-year growth, which traders interpret as a signal that near-term topline momentum could be lumpy. AppLovin misses quarterly revenue estimates amid advertising competition

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.