Citigroup Lowers AppLovin (NASDAQ:APP) Price Target to $650.00

AppLovin (NASDAQ:APP) had its price objective reduced by equities research analysts at Citigroup from $710.00 to $650.00 in a research report issued on Friday,Benzinga reports. The firm currently has a “buy” rating on the stock. Citigroup’s target price would indicate a potential upside of 87.43% from the stock’s current price.

Other equities analysts have also recently issued reports about the stock. Wells Fargo & Company reiterated an “equal weight” rating and issued a $357.00 target price (down from $575.00) on shares of AppLovin in a research note on Thursday. Morgan Stanley cut their price target on AppLovin from $720.00 to $650.00 and set an “overweight” rating for the company in a research note on Thursday. UBS Group reduced their price target on AppLovin from $798.00 to $790.00 and set a “buy” rating for the company in a report on Thursday. Argus started coverage on AppLovin in a research report on Tuesday, April 14th. They set a “buy” rating and a $520.00 price target on the stock. Finally, Benchmark dropped their price objective on AppLovin from $775.00 to $500.00 and set a “buy” rating on the stock in a report on Thursday. Two investment analysts have rated the stock with a Strong Buy rating, fifteen have assigned a Buy rating and seven have given a Hold rating to the stock. According to data from MarketBeat.com, the company presently has an average rating of “Moderate Buy” and an average price target of $574.82.

AppLovin Stock Performance

NASDAQ APP traded up $11.13 during trading hours on Friday, reaching $346.80. The stock had a trading volume of 7,679,111 shares, compared to its average volume of 5,733,596. AppLovin has a 52-week low of $332.19 and a 52-week high of $745.61. The stock has a fifty day moving average of $479.50 and a 200 day moving average of $464.74. The company has a debt-to-equity ratio of 1.49, a quick ratio of 3.24 and a current ratio of 3.24. The stock has a market cap of $116.50 billion, a P/E ratio of 26.66, a price-to-earnings-growth ratio of 0.68 and a beta of 2.54.

AppLovin (NASDAQ:APP) last posted its quarterly earnings results on Tuesday, August 4th. The company reported $3.76 earnings per share (EPS) for the quarter, hitting analysts’ consensus estimates of $3.76. AppLovin had a net margin of 64.58% and a return on equity of 221.53%. The company had revenue of $1.92 billion during the quarter, compared to analyst estimates of $1.94 billion. During the same period last year, the firm posted $2.39 EPS. AppLovin’s revenue for the quarter was up 52.8% compared to the same quarter last year. Sell-side analysts predict that AppLovin will post 15.93 earnings per share for the current year.

Insider Activity

In other AppLovin news, CFO Matthew Stumpf sold 9,052 shares of the firm’s stock in a transaction that occurred on Thursday, May 28th. The shares were sold at an average price of $600.00, for a total value of $5,431,200.00. Following the transaction, the chief financial officer directly owned 177,450 shares of the company’s stock, valued at $106,470,000. This trade represents a 4.85% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, Director Eduardo Vivas sold 163,910 shares of the firm’s stock in a transaction that occurred on Tuesday, June 16th. The stock was sold at an average price of $504.06, for a total transaction of $82,620,474.60. Following the completion of the transaction, the director directly owned 6,785,087 shares in the company, valued at $3,420,090,953.22. This trade represents a 2.36% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders sold a total of 393,000 shares of company stock valued at $197,297,363 in the last ninety days. 12.81% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On AppLovin

Hedge funds and other institutional investors have recently made changes to their positions in the stock. Washington Trust Advisors Inc. increased its stake in shares of AppLovin by 160.0% in the 4th quarter. Washington Trust Advisors Inc. now owns 39 shares of the company’s stock worth $27,000 after acquiring an additional 24 shares during the last quarter. Mcguire Capital Advisors Inc. purchased a new stake in shares of AppLovin in the fourth quarter valued at about $27,000. Laurel Wealth Advisors LLC purchased a new stake in shares of AppLovin in the fourth quarter valued at about $32,000. Osbon Capital Management LLC acquired a new stake in AppLovin during the fourth quarter worth about $36,000. Finally, Dogwood Wealth Management LLC raised its stake in AppLovin by 84.4% during the fourth quarter. Dogwood Wealth Management LLC now owns 59 shares of the company’s stock worth $40,000 after purchasing an additional 27 shares during the period. Institutional investors and hedge funds own 41.85% of the company’s stock.

AppLovin News Summary

Here are the key news stories impacting AppLovin this week:

• Positive Sentiment: AppLovin reported second-quarter revenue of $1.924 billion, up 52.8% year over year, while earnings of $3.76 per share matched consensus estimates and exceeded some estimates. The results marked the company’s fourth consecutive earnings beat and support the bullish view that its AI-driven advertising platform is still expanding rapidly. AppLovin Grows 53% and Beats on Profit
• Positive Sentiment: Management expects third-quarter revenue of approximately $2.055 billion to $2.085 billion and cited continued momentum in consumer-focused advertising and broader vertical expansion. Analysts at Morgan Stanley, RBC, BTIG, Needham and Bank of America maintained positive ratings despite lowering their price targets, implying substantial upside from recent levels. AppLovin Q2 Earnings Call Highlights
• Neutral Sentiment: AppLovin attributed the revenue shortfall and slower-than-expected AI model improvements largely to timing issues, while saying live performance gains and consumer scaling should support stronger growth in the third quarter. Investors must determine whether the weakness is temporary or signals a more competitive advertising market. APP Q2 Earnings Call Highlights
• Negative Sentiment: Revenue came in below Wall Street’s roughly $1.94 billion forecast, and the third-quarter outlook was slightly below expectations. The miss, combined with concerns about AI execution and heavier AI spending, triggered a broad wave of price-target reductions and caused the stock’s initial decline. AppLovin Stock Plummets on Weaker Revenue Outlook
• Negative Sentiment: Pomerantz LLP announced an investigation into potential investor claims involving AppLovin. The investigation is preliminary and does not establish wrongdoing, but it adds a legal headline risk after the earnings disappointment. Pomerantz Investor Alert

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.