AppLovin (NASDAQ:APP) Shares Up 1.3% – Time to Buy?
by Danessa Lincoln · The Markets DailyAppLovin Corporation (NASDAQ:APP – Get Free Report)’s share price traded up 1.3% on Tuesday . The company traded as high as $469.09 and last traded at $459.09. 4,299,767 shares changed hands during trading, a decline of 34% from the average session volume of 6,497,445 shares. The stock had previously closed at $453.30.
AppLovin News Summary
Here are the key news stories impacting AppLovin this week:
- Positive Sentiment: Expansion thesis: Analysts and research pieces highlight AppLovin’s push into e‑commerce and its AXON 2.0 platform as a potential new growth engine that could broaden monetization beyond gaming and support longer‑term revenue upside. Read More.
- Positive Sentiment: Analyst backing: The consensus broker view remains generally bullish (average ≈ Buy), which can help underpin institutional demand despite near‑term volatility. Read More.
- Neutral Sentiment: Valuation/volatility debate: Commentary urges investors to reassess whether recent prices reflect growth prospects; useful framing but not an immediate fundamental change. Read More.
- Neutral Sentiment: Short‑interest data feeds show anomalies/zeros and provide no clear signal of rising short pressure — treat these figures cautiously until data is confirmed.
- Negative Sentiment: Insider sale: Director Eduardo Vivas sold 163,910 shares (~$74.3M at the sale price), trimming his stake by ~2.3%; media cite this filing as the headline catalyst for intraday weakness because large director sales often prompt investor re‑pricing. Read More.
- Negative Sentiment: Counterparty/KYC concern: JPMorgan cut ties with a major AppLovin investor (reported ~$4.6B stake) over KYC issues — the move raises short‑term reputational and liquidity worries around that holder and may increase uncertainty for investors. Read More.
- Negative Sentiment: Market reaction & liquidity: Coverage notes below‑average intraday volume and downward price pressure following the insider sale and related headlines, which can amplify moves when bid support thins. Read More.
- Negative Sentiment: Minor institutional trimming: Small adviser filings showing modest sales add to the negative narrative, though they are not material individually. Read More.
Analysts Set New Price Targets
A number of equities research analysts have recently commented on APP shares. Arete Research set a $340.00 price objective on AppLovin and gave the company a “neutral” rating in a research report on Monday, March 2nd. UBS Group set a $740.00 target price on AppLovin in a research report on Thursday, February 12th. Scotiabank boosted their target price on shares of AppLovin from $750.00 to $775.00 and gave the company an “outperform” rating in a report on Thursday, February 12th. Benchmark reaffirmed a “buy” rating on shares of AppLovin in a research report on Friday, March 6th. Finally, Citigroup cut their price target on shares of AppLovin from $820.00 to $710.00 and set a “buy” rating on the stock in a research note on Thursday, February 12th. Twenty analysts have rated the stock with a Buy rating and five have assigned a Hold rating to the company. According to MarketBeat.com, AppLovin currently has an average rating of “Moderate Buy” and a consensus target price of $654.50.
View Our Latest Stock Report on AppLovin
AppLovin Trading Down 0.6%
The firm’s 50 day simple moving average is $483.75 and its 200-day simple moving average is $573.55. The company has a market capitalization of $148.37 billion, a PE ratio of 45.12, a P/E/G ratio of 0.81 and a beta of 2.51. The company has a quick ratio of 3.32, a current ratio of 3.32 and a debt-to-equity ratio of 1.65.
AppLovin (NASDAQ:APP – Get Free Report) last issued its earnings results on Wednesday, February 11th. The company reported $3.24 EPS for the quarter, beating analysts’ consensus estimates of $2.89 by $0.35. The business had revenue of $1.66 billion for the quarter, compared to the consensus estimate of $1.61 billion. AppLovin had a net margin of 57.42% and a return on equity of 245.64%. The business’s revenue for the quarter was up 66.0% compared to the same quarter last year. During the same quarter last year, the firm posted $1.73 EPS. As a group, equities research analysts anticipate that AppLovin Corporation will post 6.87 EPS for the current year.
Insider Activity at AppLovin
In other news, CEO Arash Adam Foroughi sold 40,704 shares of the company’s stock in a transaction dated Thursday, March 12th. The stock was sold at an average price of $459.85, for a total value of $18,717,734.40. Following the completion of the sale, the chief executive officer owned 2,430,414 shares of the company’s stock, valued at $1,117,625,877.90. This represents a 1.65% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, Director Eduardo Vivas sold 163,910 shares of the stock in a transaction dated Monday, March 16th. The shares were sold at an average price of $453.49, for a total value of $74,331,545.90. Following the completion of the sale, the director owned 6,969,382 shares of the company’s stock, valued at approximately $3,160,545,043.18. This trade represents a 2.30% decrease in their position. The SEC filing for this sale provides additional information. In the last three months, insiders sold 344,334 shares of company stock worth $159,993,818. Corporate insiders own 13.66% of the company’s stock.
Hedge Funds Weigh In On AppLovin
Several hedge funds and other institutional investors have recently bought and sold shares of the stock. Board of the Pension Protection Fund acquired a new position in shares of AppLovin during the fourth quarter worth $27,000. Washington Trust Advisors Inc. increased its stake in AppLovin by 160.0% during the 4th quarter. Washington Trust Advisors Inc. now owns 39 shares of the company’s stock worth $27,000 after buying an additional 24 shares during the period. Mcguire Capital Advisors Inc. purchased a new stake in AppLovin during the 4th quarter worth $27,000. Chilton Capital Management LLC acquired a new position in AppLovin in the 3rd quarter worth $29,000. Finally, Activest Wealth Management lifted its holdings in AppLovin by 760.0% in the 3rd quarter. Activest Wealth Management now owns 43 shares of the company’s stock worth $31,000 after buying an additional 38 shares in the last quarter. 41.85% of the stock is owned by institutional investors and hedge funds.
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.