AppLovin (NASDAQ:APP) Shares Up 3.9% – Here’s Why

AppLovin Corporation (NASDAQ:APP) shot up 3.9% on Friday. The company traded as high as $413.88 and last traded at $409.10. Approximately 3,415,476 shares changed hands during mid-day trading, a decline of 39% from the average session volume of 5,605,706 shares. The stock had previously closed at $393.68.

Key AppLovin News

Investors following APP have been watching these news items:

• Positive Sentiment: AppLovin’s latest quarterly results beat analyst estimates for earnings and revenue, with revenue up 55.5% year over year. A report also cites fresh fourth-quarter guidance and an expanded share-repurchase plan, supporting the recent rebound in the shares. Article: AppLovin Jumps on Strong Q3 Results
• Negative Sentiment: Several law firms are publicizing a pending securities class action, with a November 16 lead-plaintiff deadline. The complaint alleges AppLovin executives made misleading statements about the readiness, integration, and adoption of its AI models and self-service ad tools. These are allegations, not findings, but the litigation could add uncertainty and reputational risk. Article: AppLovin Securities Class Action Alert
• Negative Sentiment: A Seeking Alpha article downgraded the stock, arguing valuation outweighs execution; this may temper enthusiasm after the recent rally. Article: AppLovin Valuation Trumps Execution

Analyst Ratings Changes

Several analysts have issued reports on the stock. Wells Fargo & Company increased their price objective on shares of AppLovin from $325.00 to $347.00 and gave the company an “equal weight” rating in a research report on Friday, November 6th. Deutsche Bank reduced their target price on shares of AppLovin from $660.00 to $580.00 and set a “buy” rating on the stock in a research report on Thursday, August 6th. Daiwa Securities Group reduced their target price on shares of AppLovin from $569.00 to $345.00 and set an “outperform” rating on the stock in a research report on Wednesday, August 19th. Royal Bank Of Canada upped their target price on shares of AppLovin from $500.00 to $520.00 and gave the company an “outperform” rating in a research note on Thursday, November 5th. Finally, BTIG Research raised their price target on shares of AppLovin from $396.00 to $450.00 and gave the company a “buy” rating in a report on Thursday, November 5th. Three analysts have rated the stock with a Strong Buy rating, seventeen have issued a Buy rating and eight have given a Hold rating to the company’s stock. According to MarketBeat.com, the stock has a consensus rating of “Moderate Buy” and an average target price of $497.93.

AppLovin Stock Performance

The firm has a market cap of $135.54 billion, a price-to-earnings ratio of 27.53, a PEG ratio of 0.80 and a beta of 2.51. The company has a quick ratio of 3.80, a current ratio of 3.80 and a debt-to-equity ratio of 1.07. The company has a 50 day moving average of $302.13 and a 200 day moving average of $406.68.

AppLovin (NASDAQ:APP) last issued its quarterly earnings data on Wednesday, November 4th. The company reported $4.30 earnings per share for the quarter, beating analysts’ consensus estimates of $4.03 by $0.27. AppLovin had a return on equity of 182.97% and a net margin of 65.89%. The firm had revenue of $2.18 billion during the quarter, compared to analyst estimates of $2.07 billion. During the same quarter last year, the firm earned $2.45 EPS. AppLovin’s quarterly revenue was up 55.5% on a year-over-year basis. As a group, equities research analysts expect that AppLovin Corporation will post 16.25 EPS for the current fiscal year.

Hedge Funds Weigh In On AppLovin

Several institutional investors and hedge funds have recently made changes to their positions in the business. Cassaday & Co Wealth Management LLC bought a new stake in shares of AppLovin in the first quarter worth $25,000. Rachor Investment Advisory Services LLC bought a new position in AppLovin during the 3rd quarter valued at $25,000. Pioneer Family Office LLC acquired a new position in AppLovin during the 2nd quarter worth $31,000. IMA Advisory Services Inc. grew its holdings in AppLovin by 40.0% during the 1st quarter. IMA Advisory Services Inc. now owns 84 shares of the company’s stock worth $33,000 after acquiring an additional 24 shares in the last quarter. Finally, OFI Invest Asset Management grew its holdings in AppLovin by 16.3% during the 2nd quarter. OFI Invest Asset Management now owns 68,739 shares of the company’s stock worth $35,000 after acquiring an additional 9,615 shares in the last quarter. 41.85% of the stock is currently owned by hedge funds and other institutional investors.

About AppLovin

AppLovin is a technology company that provides software to help mobile app developers and advertisers grow their businesses. Its platform connects advertisers seeking users with app publishers looking to monetize their audiences, using data and machine-learning tools to support advertising and user acquisition. The company’s products include AXON, its advertising optimization engine; AppDiscovery, which helps advertisers find and acquire users; and MAX, a platform for managing in-app advertising.