AppLovin (NASDAQ:APP) Releases Quarterly Earnings Results, Beats Expectations By $0.11 EPS

AppLovin (NASDAQ:APP) posted its quarterly earnings data on Wednesday. The company reported $2.45 earnings per share for the quarter, topping the consensus estimate of $2.34 by $0.11, Zacks reports. The company had revenue of $1.41 billion during the quarter, compared to analysts’ expectations of $1.34 billion. AppLovin had a net margin of 45.72% and a return on equity of 252.67%. AppLovin’s revenue for the quarter was up 68.2% compared to the same quarter last year. During the same period in the prior year, the company posted $1.29 earnings per share. AppLovin updated its Q4 2025 guidance to EPS.

AppLovin Price Performance

APP stock traded up $7.63 during midday trading on Thursday, reaching $624.68. The company had a trading volume of 3,918,292 shares, compared to its average volume of 7,156,419. The company has a debt-to-equity ratio of 3.01, a current ratio of 2.74 and a quick ratio of 2.74. AppLovin has a 1 year low of $200.50 and a 1 year high of $745.61. The company has a market capitalization of $211.30 billion, a P/E ratio of 89.06, a P/E/G ratio of 3.30 and a beta of 2.50. The firm has a 50-day moving average price of $599.29 and a 200-day moving average price of $446.46.

Wall Street Analyst Weigh In

APP has been the topic of several research analyst reports. Weiss Ratings lowered shares of AppLovin from a “buy (b-)” rating to a “hold (c+)” rating in a research note on Friday, October 24th. Needham & Company LLC reaffirmed a “hold” rating on shares of AppLovin in a research note on Tuesday, August 26th. Oppenheimer set a $740.00 price objective on shares of AppLovin in a research note on Tuesday, October 7th. Morgan Stanley lifted their price objective on shares of AppLovin from $480.00 to $750.00 and gave the stock an “overweight” rating in a research report on Monday, September 29th. Finally, BTIG Research lifted their price objective on shares of AppLovin from $693.00 to $705.00 and gave the stock a “buy” rating in a research report on Thursday. One analyst has rated the stock with a Strong Buy rating, twenty-one have issued a Buy rating, five have given a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat, the stock has an average rating of “Moderate Buy” and an average price target of $614.09.

Insiders Place Their Bets

In other news, Director Herald Y. Chen sold 200,000 shares of the business’s stock in a transaction that occurred on Thursday, August 14th. The shares were sold at an average price of $432.49, for a total value of $86,498,000.00. Following the completion of the sale, the director directly owned 181,929 shares in the company, valued at approximately $78,682,473.21. The trade was a 52.37% decrease in their position. The sale was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. Also, Director Eduardo Vivas sold 125,000 shares of the business’s stock in a transaction on Tuesday, August 12th. The shares were sold at an average price of $466.00, for a total transaction of $58,250,000.00. Following the transaction, the director directly owned 7,283,292 shares in the company, valued at approximately $3,394,014,072. The trade was a 1.69% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Over the last quarter, insiders have sold 1,156,788 shares of company stock worth $514,863,333. 13.66% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently made changes to their positions in the business. Canada Pension Plan Investment Board lifted its holdings in AppLovin by 204.8% in the 2nd quarter. Canada Pension Plan Investment Board now owns 425,622 shares of the company’s stock valued at $149,002,000 after purchasing an additional 285,970 shares in the last quarter. Viking Global Investors LP lifted its holdings in AppLovin by 172.1% in the 2nd quarter. Viking Global Investors LP now owns 372,973 shares of the company’s stock valued at $130,570,000 after purchasing an additional 235,880 shares in the last quarter. Worldquant Millennium Advisors LLC purchased a new position in AppLovin in the 2nd quarter valued at $49,313,000. Moore Capital Management LP lifted its holdings in AppLovin by 1,422.6% in the 2nd quarter. Moore Capital Management LP now owns 121,426 shares of the company’s stock valued at $42,509,000 after purchasing an additional 113,451 shares in the last quarter. Finally, Duquesne Family Office LLC lifted its holdings in AppLovin by 122.5% in the 2nd quarter. Duquesne Family Office LLC now owns 89,458 shares of the company’s stock valued at $31,317,000 after purchasing an additional 49,258 shares in the last quarter. Hedge funds and other institutional investors own 41.85% of the company’s stock.

About AppLovin

AppLovin Corporation engages in building a software-based platform for advertisers to enhance the marketing and monetization of their content in the United States and internationally. It operates through two segments, Software Platform and Apps. The company's software solutions include AppDiscovery, a marketing software solution, which matches advertiser demand with publisher supply through auctions; MAX, an in-app bidding software that optimizes the value of a publisher's advertising inventory by running a real-time competitive auction; Adjust, a measurement and analytics marketing platform that provides marketers with the visibility, insights, and tools needed to grow their apps from early stage to maturity; and Wurl, a connected TV platform, which distributes streaming video for content companies and provides advertising and publishing solutions through its AdPool, ContentDiscovery, and Global FAST Pass products.