AppLovin (NASDAQ:APP) Posts Quarterly Earnings Results, Beats Estimates By $0.35 EPS

AppLovin (NASDAQ:APP) announced its quarterly earnings results on Wednesday. The company reported $3.24 EPS for the quarter, beating analysts’ consensus estimates of $2.89 by $0.35, Zacks reports. AppLovin had a net margin of 51.27% and a return on equity of 258.49%. The firm had revenue of $1.66 billion during the quarter, compared to analysts’ expectations of $1.61 billion.

AppLovin Stock Performance

AppLovin stock traded down $16.11 during trading on Wednesday, reaching $456.81. The company had a trading volume of 9,002,021 shares, compared to its average volume of 6,404,638. The firm has a market capitalization of $154.38 billion, a price-to-earnings ratio of 55.44, a price-to-earnings-growth ratio of 1.52 and a beta of 2.49. AppLovin has a 52 week low of $200.50 and a 52 week high of $745.61. The firm’s 50-day simple moving average is $612.96 and its 200 day simple moving average is $572.41. The company has a current ratio of 3.25, a quick ratio of 3.25 and a debt-to-equity ratio of 2.38.

Analyst Upgrades and Downgrades

A number of research analysts recently issued reports on the stock. Wedbush reissued an “outperform” rating and issued a $465.00 price objective on shares of AppLovin in a research note on Thursday, February 5th. Weiss Ratings downgraded shares of AppLovin from a “buy (b-)” rating to a “hold (c+)” rating in a research note on Thursday, January 15th. Jefferies Financial Group raised their price objective on shares of AppLovin from $800.00 to $860.00 and gave the company a “buy” rating in a research note on Thursday, December 11th. Zacks Research upgraded shares of AppLovin from a “hold” rating to a “strong-buy” rating in a report on Thursday, January 1st. Finally, Evercore reissued a “buy” rating on shares of AppLovin in a report on Friday, January 30th. One equities research analyst has rated the stock with a Strong Buy rating, twenty have given a Buy rating, three have issued a Hold rating and one has assigned a Sell rating to the stock. According to data from MarketBeat, AppLovin has an average rating of “Moderate Buy” and an average target price of $686.05.

Key Stories Impacting AppLovin

Here are the key news stories impacting AppLovin this week:

• Positive Sentiment: Short-seller retraction lifted sentiment — CapitalWatch apologized and retracted money‑laundering claims tied to a shareholder, triggering a big intraday jump and putting APP among S&P leaders as investors stepped back into the stock. Article Title
• Positive Sentiment: Strong earnings outlook ahead of results — previews show analysts expect sizable Q4 earnings growth (~78%) with e-commerce and gaming performance key to the print, supporting upside into the report. Article Title
• Positive Sentiment: Bullish technical/idea flow — traders and outlets are highlighting a breakout/setup around the $466 level and thematic buy-the-dip arguments citing AI, e-commerce, and product rollouts (Axon 2.0) that could accelerate revenue/ROAS improvements. Article Title
• Neutral Sentiment: Short-interest data is noisy/meaningless in recent print — the published figures show 0 shares/NaN changes and a 0.0 day ratio, so short-interest isn’t a clear signal right now and shouldn’t be overinterpreted.
• Neutral Sentiment: Industry positioning — APP is being cited in lists of software names that may be resilient to AI disruption, which is a thematic plus but not an immediate price driver. Article Title
• Negative Sentiment: Sentiment and valuation caution persists — high expectations and commentary from personalities like Jim Cramer (“not so magical now”) underscore that some investors remain skeptical; APP still trades at a premium multiple, leaving it sensitive to any softness in the upcoming earnings print. Article Title

Insider Activity at AppLovin

In other news, insider Victoria Valenzuela sold 7,609 shares of the company’s stock in a transaction that occurred on Thursday, December 18th. The stock was sold at an average price of $657.13, for a total transaction of $5,000,102.17. Following the sale, the insider directly owned 277,110 shares of the company’s stock, valued at $182,097,294.30. This represents a 2.67% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Also, CEO Arash Adam Foroughi sold 30,888 shares of the company’s stock in a transaction that occurred on Friday, November 21st. The shares were sold at an average price of $520.29, for a total value of $16,070,717.52. Following the sale, the chief executive officer owned 2,553,161 shares in the company, valued at approximately $1,328,384,136.69. This trade represents a 1.20% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Over the last ninety days, insiders sold 187,786 shares of company stock valued at $100,914,925. 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 business. Revolve Wealth Partners LLC purchased a new position in AppLovin during the fourth quarter valued at approximately $294,000. Bison Wealth LLC acquired a new position in shares of AppLovin during the 4th quarter worth about $239,000. Limestone Investment Advisors LP acquired a new position in shares of AppLovin during the third quarter valued at approximately $575,000. Ausdal Financial Partners Inc. lifted its holdings in AppLovin by 78.2% in the 2nd quarter. Ausdal Financial Partners Inc. now owns 1,502 shares of the company’s stock valued at $526,000 after purchasing an additional 659 shares in the last quarter. Finally, Quadrant Capital Group LLC purchased a new position in shares of AppLovin in the third quarter worth about $488,000. 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.