AppLovin (NASDAQ:APP) Sets New 52-Week Low on Analyst Downgrade

AppLovin Corporation (NASDAQ:APP) hit a new 52-week low during mid-day trading on Wednesday after BTIG Research lowered their price target on the stock from $574.00 to $408.00. BTIG Research currently has a buy rating on the stock. AppLovin traded as low as $318.12 and last traded at $318.68, with a volume of 7987498 shares. The stock had previously closed at $339.00.

A number of other research analysts have also recently issued reports on the stock. Piper Sandler cut shares of AppLovin from an “overweight” rating to a “neutral” rating and reduced their price objective for the company from $665.00 to $385.00 in a report on Thursday, August 6th. Argus initiated coverage on AppLovin in a research note on Tuesday, April 14th. They set a “buy” rating and a $520.00 price target for the company. Morgan Stanley decreased their price objective on AppLovin from $720.00 to $650.00 and set an “overweight” rating for the company in a report on Thursday, August 6th. Wedbush dropped their target price on AppLovin from $640.00 to $610.00 and set an “outperform” rating on the stock in a report on Thursday, August 6th. Finally, JPMorgan Chase & Co. lifted their target price on AppLovin from $500.00 to $515.00 and gave the company a “neutral” rating in a research report on Thursday, May 7th. Three equities research analysts have rated the stock with a Strong Buy rating, thirteen have issued a Buy rating and eight have issued a Hold rating to the company’s stock. Based on data from MarketBeat.com, AppLovin presently has a consensus rating of “Moderate Buy” and a consensus price target of $565.91.

Insider Transactions at AppLovin

In related news, CEO Arash Adam Foroughi sold 33,042 shares of AppLovin stock in a transaction on Thursday, June 11th. The stock was sold at an average price of $486.95, for a total transaction of $16,089,801.90. Following the sale, the chief executive officer directly owned 2,369,351 shares in the company, valued at approximately $1,153,755,469.45. This trade represents a 1.38% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, Director Eduardo Vivas sold 163,910 shares of the business’s stock in a transaction on Tuesday, June 16th. The stock was sold at an average price of $504.06, for a total value of $82,620,474.60. Following the completion of the transaction, the director directly owned 6,785,087 shares in the company, valued at approximately $3,420,090,953.22. This represents a 2.36% decrease in their position. The disclosure for this sale is available in the SEC filing. Over the last three months, insiders have sold 393,000 shares of company stock worth $197,297,363. 12.81% of the stock is owned by insiders.

AppLovin News Summary

Here are the key news stories impacting AppLovin this week:

• Positive Sentiment: AppLovin’s third-quarter guidance points to sequential revenue-growth reacceleration while maintaining an approximately 83% margin, even as the company continues investing in AI computing capacity. AppLovin Q3 Guidance Signals Reacceleration After a Mixed Q2 Print
• Positive Sentiment: Despite recent weakness, analysts and valuation commentary continue to highlight APP’s rapid revenue growth, very high margins and potential upside from depressed levels. BTIG retained a “buy” rating with a $408 target, while Phillip Securities upgraded the stock to “strong buy.” BTIG AppLovin Price Target
• Positive Sentiment: AppLovin is promoting its advertising platform to demonstrate that its technology can compete effectively in the digital-ad market, potentially supporting future customer adoption and growth. AppLovin Wants To Persuade The World That Its Ad Platform Is The Real Deal
• Neutral Sentiment: Bank of America assigned AppLovin a “neutral” rating, reflecting a balance between the company’s growth opportunity and execution or valuation risks. AppLovin Earns Neutral Rating from Bank of America
• Negative Sentiment: The recent selloff was intensified by a prior analyst downgrade and concerns surrounding a mixed second-quarter report. Although EPS met expectations and revenue grew strongly year over year, revenue fell short of estimates, while investors remain concerned about execution in e-commerce, limited visibility and continued AI-investment costs. Why AppLovin Stock Slumped
• Negative Sentiment: BTIG cut its price target substantially, even while maintaining a buy rating, underscoring that analysts have lowered expectations after the stock’s decline. The broader debate remains whether APP represents a discounted growth opportunity or a deteriorating growth story. AppLovin at 52-Week Low

Hedge Funds Weigh In On AppLovin

Institutional investors have recently added to or reduced their stakes in the stock. Vanguard Group Inc. grew its position in shares of AppLovin by 0.7% during the 4th quarter. Vanguard Group Inc. now owns 25,120,575 shares of the company’s stock valued at $16,926,746,000 after acquiring an additional 166,117 shares during the period. State Street Corp lifted its stake in AppLovin by 0.4% in the fourth quarter. State Street Corp now owns 11,904,843 shares of the company’s stock valued at $8,021,721,000 after purchasing an additional 52,377 shares during the last quarter. Geode Capital Management LLC lifted its stake in AppLovin by 6.7% in the fourth quarter. Geode Capital Management LLC now owns 7,167,003 shares of the company’s stock valued at $4,817,269,000 after purchasing an additional 448,005 shares during the last quarter. Price T Rowe Associates Inc. MD grew its holdings in AppLovin by 3.6% during the fourth quarter. Price T Rowe Associates Inc. MD now owns 6,089,735 shares of the company’s stock valued at $4,103,386,000 after purchasing an additional 212,349 shares during the period. Finally, Morgan Stanley grew its holdings in AppLovin by 10.7% during the fourth quarter. Morgan Stanley now owns 5,561,646 shares of the company’s stock valued at $3,747,551,000 after purchasing an additional 538,806 shares during the period. Institutional investors own 41.85% of the company’s stock.

AppLovin Stock Up 2.9%

The firm has a market capitalization of $105.04 billion, a PE ratio of 24.03, a P/E/G ratio of 0.61 and a beta of 2.54. The stock has a 50-day simple moving average of $452.68 and a 200-day simple moving average of $457.05. The company has a quick ratio of 4.30, a current ratio of 4.30 and a debt-to-equity ratio of 1.11.

AppLovin (NASDAQ:APP) last issued its quarterly earnings results on Tuesday, August 4th. The company reported $3.76 EPS for the quarter, meeting analysts’ consensus estimates of $3.76. The firm had revenue of $1.92 billion for the quarter, compared to analysts’ expectations of $1.94 billion. AppLovin had a return on equity of 193.10% and a net margin of 64.58%.The business’s revenue for the quarter was up 52.8% compared to the same quarter last year. During the same quarter in the prior year, the firm earned $2.39 EPS. Analysts forecast that AppLovin Corporation will post 15.57 EPS for the current year.

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.