AppLovin (NASDAQ:APP) Stock Price Down 5.8% – Should You Sell?
by Mitch Edgeman · The Markets DailyAppLovin Corporation (NASDAQ:APP – Get Free Report)’s stock price dropped 5.8% on Wednesday . The company traded as low as $530.15 and last traded at $532.5710. Approximately 6,327,302 shares traded hands during mid-day trading, an increase of 19% from the average daily volume of 5,306,126 shares. The stock had previously closed at $565.52.
Trending Headlines about AppLovin
Here are the key news stories impacting AppLovin this week:
- Positive Sentiment: Wall Street support remains strong: multiple firms maintain buy/outperform ratings and high price targets for APP, providing a bullish counterbalance to the headlines. AppLovin Corporation Stock (APP) Opinions on Critical Shareholder Report
- Positive Sentiment: Institutional buying remains notable: several large funds reported added positions in recent quarters, which supports longer‑term liquidity and price support. AppLovin Corporation Stock (APP) Opinions on Critical Shareholder Report
- Neutral Sentiment: Zacks examines broker recommendations and context for buy/sell signals — analyst moves can influence short‑term price action but should be weighed with due diligence. Brokers Suggest Investing in AppLovin (APP): Read This Before Placing a Bet
- Neutral Sentiment: Broader tech/peer coverage mentions AppLovin as a competitive AI ad leader (e.g., in pieces comparing to Shopify/Unity), which frames the company’s growth thesis even as headlines cause volatility. AppLovin Or Shopify: Which Stock To Bet On?
- Neutral Sentiment: Market commentary on peers (Unity) highlights competitive dynamics in AI ad monetization — relevant background but not an immediate driver of today’s move. Unity Software Is Falling—So Why Are Pros Getting More Bullish?
- Negative Sentiment: Short‑seller CapitalWatch report alleging money‑laundering ties is the primary catalyst cited across outlets; those accusations triggered the abrupt sell‑off and heightened scrutiny. AppLovin shares slide as short-seller alleges global money laundering ties
- Negative Sentiment: Follow‑on coverage amplified the story (Yahoo/MSN/Blockonomi/247wallst), sustaining downward pressure as investors seek clarity and any regulatory/investigative response. AppLovin Stock Falls After Negative CapitalWatch Report
- Negative Sentiment: Heavy insider selling noted in social summaries raises governance/management alignment concerns; that data is being cited by skeptics and may prolong volatility until addressed. AppLovin Corporation Stock (APP) Opinions on Critical Shareholder Report
- Negative Sentiment: Analyst downgrades and sell calls (e.g., Seeking Alpha’s downgrade) increase short‑term downside risk if more sell‑side voices follow. AppLovin: Thesis Largely Played Out, Downgrade To Sell
Analyst Upgrades and Downgrades
APP has been the subject of a number of recent analyst reports. Phillip Securities raised shares of AppLovin to a “moderate buy” rating in a research note on Monday, September 29th. Morgan Stanley upped their price target on AppLovin from $750.00 to $800.00 and gave the company an “overweight” rating in a research report on Tuesday, January 13th. Evercore ISI assumed coverage on AppLovin in a research note on Wednesday, January 14th. They set an “outperform” rating and a $835.00 target price on the stock. BTIG Research reiterated a “buy” rating and issued a $771.00 target price on shares of AppLovin in a report on Wednesday, December 17th. Finally, Royal Bank Of Canada raised their price target on shares of AppLovin from $700.00 to $750.00 and gave the stock an “outperform” rating in a report on Thursday, November 6th. One investment analyst has rated the stock with a Strong Buy rating, nineteen have given a Buy rating, four have issued a Hold rating and one has assigned a Sell rating to the company’s stock. According to data from MarketBeat.com, the stock currently has a consensus rating of “Moderate Buy” and an average price target of $706.76.
AppLovin Stock Down 5.8%
The company has a market cap of $179.98 billion, a price-to-earnings ratio of 64.63, a PEG ratio of 1.88 and a beta of 2.50. The business has a 50-day simple moving average of $637.19 and a two-hundred day simple moving average of $558.53. The company has a quick ratio of 3.25, a current ratio of 3.25 and a debt-to-equity ratio of 2.38.
AppLovin (NASDAQ:APP – Get Free Report) last announced its earnings results on Wednesday, November 5th. The company reported $2.45 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $2.34 by $0.11. AppLovin had a return on equity of 258.49% and a net margin of 51.27%.The firm had revenue of $1.41 billion during the quarter, compared to analysts’ expectations of $1.34 billion. During the same quarter in the prior year, the business earned $1.29 earnings per share. The company’s revenue was up 68.2% on a year-over-year basis. As a group, equities analysts forecast that AppLovin Corporation will post 6.87 earnings per share for the current fiscal year.
Insiders Place Their Bets
In other news, CEO Arash Adam Foroughi sold 30,888 shares of the firm’s stock in a transaction dated Friday, November 21st. The stock was sold at an average price of $520.29, for a total value of $16,070,717.52. Following the sale, the chief executive officer directly owned 2,553,161 shares of the company’s stock, valued at approximately $1,328,384,136.69. This trade represents a 1.20% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, Director Eduardo Vivas sold 150,000 shares of the stock in a transaction that occurred on Monday, November 10th. The shares were sold at an average price of $650.91, for a total value of $97,636,500.00. Following the sale, the director owned 7,133,292 shares of the company’s stock, valued at approximately $4,643,131,095.72. The trade was a 2.06% decrease in their position. The SEC filing for this sale provides additional information. Insiders sold a total of 340,336 shares of company stock valued at $200,062,623 in 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. Revolve Wealth Partners LLC bought a new stake in AppLovin during the fourth quarter worth about $294,000. Bison Wealth LLC bought a new position in AppLovin in the 4th quarter valued at $239,000. Integrated Wealth Concepts LLC boosted its stake in AppLovin by 58.0% in the first quarter. Integrated Wealth Concepts LLC now owns 1,692 shares of the company’s stock worth $448,000 after purchasing an additional 621 shares in the last quarter. Assenagon Asset Management S.A. grew its holdings in shares of AppLovin by 37.8% during the second quarter. Assenagon Asset Management S.A. now owns 5,752 shares of the company’s stock worth $2,014,000 after purchasing an additional 1,579 shares during the last quarter. Finally, Farther Finance Advisors LLC grew its holdings in shares of AppLovin by 142.8% during the second quarter. Farther Finance Advisors LLC now owns 6,504 shares of the company’s stock worth $2,277,000 after purchasing an additional 3,825 shares during the last quarter. Institutional investors and hedge funds own 41.85% of the company’s stock.
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.