AppLovin (NASDAQ:APP) Shares Down 16.1% – Here’s What Happened

AppLovin Corporation (NASDAQ:APP) fell 16.1% during mid-day trading on Wednesday . The stock traded as low as $382.40 and last traded at $387.34. 15,217,223 shares changed hands during mid-day trading, an increase of 149% from the average session volume of 6,119,260 shares. The stock had previously closed at $461.79.

Key Stories Impacting AppLovin

Here are the key news stories impacting AppLovin this week:

• Positive Sentiment: Benchmark reiterated a Buy and kept a high $775 price target, arguing Google’s new AI tools won’t meaningfully erode AppLovin’s long-term adtech moat; this supports a recovery thesis if fears subside. Why Benchmark Says Google’s AI Won’t Derail AppLovin (APP)
• Positive Sentiment: Analysts and coverage pieces continue to highlight strong fundamentals and growth runway (robust MAX/gaming ad revenue and favorable EPS/revenue estimates ahead of Q4), which could limit downside over time. Should You Buy, Sell, or Hold AppLovin Stock Before Q4 Earnings?
• Positive Sentiment: Company responses and press coverage push back on recent short-seller allegations, which could reassure investors if investigations don’t produce material findings. AppLovin Confronts Short Seller Claims As AI Shifts Reshape Outlook
• Positive Sentiment: Earnings calendar and previews signal street expectations for strong EPS and revenue growth into the next report, giving buyers a concrete near-term catalyst to re-evaluate. AppLovin (APP) Expected to Announce Earnings on Wednesday
• Neutral Sentiment: Mainstream TV coverage (CNBC Power Check) is discussing AppLovin alongside big tech — liquidity and sentiment flows from broader markets may amplify moves without new company-specific facts. Power Check: Applovin, Amazon and Apple
• Neutral Sentiment: Pre-earnings commentary (earnings previews on Seeking Alpha/Zacks) creates a two-way trade: some view weakness as a buying opportunity while others use the pullback to reduce risk before results. AppLovin: The Market Is Giving Us A Chance To Load Up (Earnings Preview)
• Negative Sentiment: High-profile commentary (Jim Cramer) amplified fear that AI (notably Google’s Project Genie) could disrupt AppLovin’s adtech and game tooling, accelerating rapid investor churn. Jim Cramer says “Wall Street’s terrified that AI will eat AppLovin alive”
• Negative Sentiment: Broader software selloff and renewed AI disruption narratives pressured APP alongside peers, with headlines explicitly linking AI risk to the stock’s decline. AppLovin stock falls amid broader software selloff and mobile ad tech concerns
• Negative Sentiment: Short-seller accusations and a new investor class-action investigation (Pomerantz alert) raise legal and reputation risk; even unproven claims can prolong volatility and force de-risking by funds. INVESTOR ALERT: Pomerantz Law Firm Investigates Claims On Behalf of Investors of AppLovin Corporation – APP
• Negative Sentiment: Analysis pieces warning the stock was “priced to perfection” suggest the selloff is partly profit-taking and re-rating risk after rapid gains. AppLovin: Being Priced To Perfection Created Too Much Risk

Wall Street Analysts Forecast Growth

A number of equities research analysts recently weighed in on the stock. Piper Sandler reissued an “overweight” rating on shares of AppLovin in a research note on Tuesday, January 20th. UBS Group set a $800.00 target price on shares of AppLovin in a research report on Tuesday, January 13th. Wells Fargo & Company raised their price target on AppLovin from $721.00 to $735.00 and gave the stock an “overweight” rating in a research report on Thursday, January 8th. Oppenheimer set a $740.00 price objective on AppLovin in a research note on Tuesday, October 7th. Finally, Benchmark reissued a “buy” rating on shares of AppLovin in a research note on Monday. One investment 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 company’s stock. According to MarketBeat.com, the company presently has a consensus rating of “Moderate Buy” and an average price target of $706.45.

AppLovin Stock Performance

The firm has a market cap of $130.90 billion, a P/E ratio of 47.01, a PEG ratio of 1.59 and a beta of 2.49. The company has a debt-to-equity ratio of 2.38, a quick ratio of 3.25 and a current ratio of 3.25. The stock’s 50-day moving average is $631.92 and its 200 day moving average is $570.29.

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

Insider Activity

In other AppLovin news, CEO Arash Adam Foroughi sold 30,888 shares of the firm’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 transaction of $16,070,717.52. Following the sale, the chief executive officer directly 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 position. The sale was disclosed in a filing with the SEC, which is accessible through this link. Also, Director Eduardo Vivas sold 150,000 shares of AppLovin stock in a transaction that occurred on Monday, November 10th. The shares were sold at an average price of $650.91, for a total transaction of $97,636,500.00. Following the completion of the transaction, the director directly owned 7,133,292 shares in the company, valued at approximately $4,643,131,095.72. The trade was a 2.06% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders have sold 340,336 shares of company stock worth $200,062,623 in the last 90 days. Corporate insiders own 13.66% of the company’s stock.

Institutional Investors Weigh In On AppLovin

Several large investors have recently made changes to their positions in the stock. Hilltop National Bank acquired a new position in AppLovin in the 2nd quarter worth $26,000. LFA Lugano Financial Advisors SA acquired a new stake in shares of AppLovin in the 2nd quarter valued at about $26,000. Board of the Pension Protection Fund bought a new stake in shares of AppLovin in the fourth quarter valued at about $27,000. Washington Trust Advisors Inc. lifted its holdings in shares of AppLovin by 160.0% in the fourth quarter. Washington Trust Advisors Inc. now owns 39 shares of the company’s stock valued at $27,000 after purchasing an additional 24 shares in the last quarter. Finally, Chilton Capital Management LLC acquired a new position in shares of AppLovin during the third quarter worth about $29,000. Institutional investors 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.