AppLovin (NASDAQ:APP) Shares Down 3.1% – Here’s Why

AppLovin Corporation (NASDAQ:APP) shares traded down 3.1% during mid-day trading on Thursday . The stock traded as low as $360.12 and last traded at $375.23. 8,680,630 shares changed hands during trading, an increase of 39% from the average session volume of 6,233,967 shares. The stock had previously closed at $387.34.

Key Stories Impacting AppLovin

Here are the key news stories impacting AppLovin this week:

• Positive Sentiment: Wedbush says AppLovin’s structural moats remain intact despite Unity’s CloudX launch — suggests competitive fears are overstated and APP’s positioning in ad monetization and data advantages should hold. AppLovin, Unity’s structural moats are ‘intact,’ despite CloudX launch: Wedbush
• Positive Sentiment: Piper Sandler reiterated an Overweight rating with an $800 price target, arguing Google’s Project Genie and other AI-native threats are overblown and valuation remains compelling. Why Piper Sandler Says Google’s Project Genie Isn’t a Threat to AppLovin (APP)
• Positive Sentiment: Benchmark also reaffirmed a Buy stance with a high price target, calling AI-native game-creation risks overstated and underscoring AppLovin’s scale and data moat. Why Benchmark Says Google’s AI Won’t Derail AppLovin (APP)
• Positive Sentiment: Positive investor commentary (Seeking Alpha) argues the pullback is panic-driven and highlights strong recent quarter growth, margin expansion and recurring beats — a bull case for buying the dip. AppLovin: Be Greedy When Others Are Fearful
• Neutral Sentiment: Zacks previews Q4 earnings season, noting strong EPS/revenue growth expectations heading into the report — useful context but not a catalyst by itself. Should You Buy, Sell, or Hold AppLovin Stock Before Q4 Earnings?
• Neutral Sentiment: Earnings timing reminders — AppLovin expected to report quarterly results this week, which remains the near-term fundamental event investors will watch. AppLovin (APP) Expected to Announce Earnings on Wednesday
• Neutral Sentiment: Reported short-interest data appears unreliable in the feed; no clear evidence of a coordinated short-squeeze or massive new short position based on these entries. (No link)
• Negative Sentiment: Some analysts/commentators have moved to a sell stance after the CloudX and other AI announcements, arguing new competitors could pressure pricing or growth expectations. Why I’m Moving To A Sell On AppLovin Following The CloudX Launch (Rating Downgrade)
• Negative Sentiment: Market commentators and headlines cite an AI-driven software selloff and mobile ad-tech concerns as immediate selling pressure on APP — a sector move amplifying company-specific fears. AppLovin stock falls amid broader software selloff and mobile ad tech concerns
• Negative Sentiment: High-profile media commentary (Jim Cramer/CNBC) has amplified investor anxiety by framing AI as an existential threat, which can accelerate short-term selling irrespective of fundamentals. Jim Cramer says “Wall Street’s terrified that AI will eat AppLovin alive”

Wall Street Analysts Forecast Growth

APP has been the topic of several recent analyst reports. Jefferies Financial Group raised their target price on shares of AppLovin from $800.00 to $860.00 and gave the stock a “buy” rating in a report on Thursday, December 11th. Zacks Research upgraded shares of AppLovin from a “hold” rating to a “strong-buy” rating in a research report on Thursday, January 1st. UBS Group set a $800.00 target price on shares of AppLovin in a report on Tuesday, January 13th. Morgan Stanley set a $800.00 price target on AppLovin and gave the company an “overweight” rating in a report on Wednesday. Finally, The Goldman Sachs Group increased their price objective on AppLovin from $630.00 to $720.00 and gave the stock a “neutral” rating in a report on Friday, November 7th. One investment analyst has rated the stock with a Strong Buy rating, twenty have issued a Buy rating, three have assigned a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat, AppLovin has an average rating of “Moderate Buy” and an average target price of $691.23.

AppLovin Stock Performance

The company has a market capitalization of $126.81 billion, a P/E ratio of 45.54, a price-to-earnings-growth ratio of 1.52 and a beta of 2.49. The company’s 50 day moving average is $627.94 and its 200-day moving average is $569.02. The company has a current ratio of 3.25, a quick ratio of 3.25 and a debt-to-equity ratio of 2.38.

AppLovin (NASDAQ:APP) last released its earnings results on Wednesday, November 5th. The company reported $2.45 earnings per share (EPS) for the quarter, beating the consensus estimate of $2.34 by $0.11. The firm had revenue of $1.41 billion during the quarter, compared to analyst estimates of $1.34 billion. AppLovin had a net margin of 51.27% and a return on equity of 258.49%. The business’s revenue was up 68.2% on a year-over-year basis. During the same period last year, the business earned $1.29 earnings per share. Equities analysts anticipate that AppLovin Corporation will post 6.87 EPS for the current fiscal year.

Insider Buying and Selling

In related news, Director Dawson Alyssa Harvey sold 150 shares of the stock in a transaction dated Monday, December 8th. The shares were sold at an average price of $693.32, for a total transaction of $103,998.00. Following the sale, the director directly owned 2,829 shares of the company’s stock, valued at approximately $1,961,402.28. This represents a 5.04% decrease in their position. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, CTO Vasily Shikin sold 27,143 shares of the stock in a transaction that occurred on Monday, November 24th. The shares were sold at an average price of $545.38, for a total transaction of $14,803,249.34. Following the sale, the chief technology officer owned 3,323,681 shares in the company, valued at approximately $1,812,669,143.78. The trade was a 0.81% decrease in their position. The SEC filing for this sale provides additional information. Over the last ninety days, insiders sold 340,336 shares of company stock valued at $200,062,623. 13.66% of the stock is owned by insiders.

Institutional Inflows and Outflows

A number of institutional investors have recently bought and sold shares of the company. CBIZ Investment Advisory Services LLC raised its position in AppLovin by 58.6% in the third quarter. CBIZ Investment Advisory Services LLC now owns 46 shares of the company’s stock worth $33,000 after acquiring an additional 17 shares during the period. Redhawk Wealth Advisors Inc. increased its stake in shares of AppLovin by 2.9% in the 4th quarter. Redhawk Wealth Advisors Inc. now owns 640 shares of the company’s stock worth $431,000 after purchasing an additional 18 shares in the last quarter. Verdence Capital Advisors LLC raised its holdings in AppLovin by 5.7% in the 4th quarter. Verdence Capital Advisors LLC now owns 333 shares of the company’s stock worth $224,000 after purchasing an additional 18 shares during the period. Versant Capital Management Inc lifted its position in AppLovin by 2.8% during the third quarter. Versant Capital Management Inc now owns 701 shares of the company’s stock valued at $504,000 after purchasing an additional 19 shares in the last quarter. Finally, Claro Advisors LLC grew its holdings in AppLovin by 3.2% during the third quarter. Claro Advisors LLC now owns 647 shares of the company’s stock valued at $465,000 after purchasing an additional 20 shares during the period. Institutional investors own 41.85% of the company’s stock.

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.