AppLovin (NASDAQ:APP) Sets New 12-Month Low on Analyst Downgrade

Shares of AppLovin Corporation (NASDAQ:APP) reached 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 traded. The stock had previously closed at $339.00.

Other equities analysts have also issued research reports about the company. Royal Bank Of Canada decreased their price target on AppLovin from $700.00 to $575.00 and set an “outperform” rating on the stock in a research note on Thursday, August 6th. Wedbush reduced their price objective on shares of AppLovin from $640.00 to $610.00 and set an “outperform” rating on the stock in a report on Thursday, August 6th. Wells Fargo & Company reaffirmed an “equal weight” rating and issued a $357.00 target price (down from $575.00) on shares of AppLovin in a research report on Thursday, August 6th. Deutsche Bank Aktiengesellschaft reaffirmed a “buy” rating and set a $660.00 target price on shares of AppLovin in a research note on Thursday, May 7th. Finally, Citigroup dropped their price target on shares of AppLovin from $710.00 to $650.00 and set a “buy” rating for the company in a research report on Friday, August 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. According to data from MarketBeat, AppLovin presently has a consensus rating of “Moderate Buy” and an average target price of $565.91.

Insider Transactions at AppLovin

In other AppLovin news, Director Eduardo Vivas sold 163,910 shares of AppLovin stock in a transaction dated 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 of the company’s stock, valued at $3,420,090,953.22. The trade was a 2.36% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available through this link. Also, insider Victoria Valenzuela sold 20,000 shares of the business’s stock in a transaction dated Thursday, June 4th. The stock was sold at an average price of $565.89, for a total transaction of $11,317,800.00. Following the sale, the insider owned 243,961 shares in the company, valued at $138,055,090.29. This trade represents a 7.58% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. In 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 corporate insiders.

Key AppLovin News

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

Institutional Investors Weigh In On AppLovin

Large investors have recently added to or reduced their stakes in the business. C M Bidwell & Associates Ltd. purchased a new position in AppLovin in the 2nd quarter valued at approximately $483,000. Abacus FCF Advisors LLC purchased a new stake in shares of AppLovin during the second quarter worth $9,706,000. Great Lakes Advisors LLC acquired a new stake in shares of AppLovin in the second quarter valued at $2,091,000. Commerzbank Aktiengesellschaft FI acquired a new stake in shares of AppLovin in the second quarter valued at $1,148,000. Finally, Plato Investment Management Ltd purchased a new position in AppLovin in the second quarter valued at $2,544,000. 41.85% of the stock is owned by hedge funds and other institutional investors.

AppLovin Stock Performance

The stock has a market capitalization of $105.04 billion, a PE ratio of 24.03, a price-to-earnings-growth ratio of 0.61 and a beta of 2.54. The company has a quick ratio of 4.30, a current ratio of 4.30 and a debt-to-equity ratio of 1.11. The stock has a fifty day moving average of $452.68 and a 200-day moving average of $457.05.

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, meeting analysts’ consensus estimates of $3.76. The company had revenue of $1.92 billion for the quarter, compared to analyst estimates of $1.94 billion. AppLovin had a return on equity of 193.10% and a net margin of 64.58%.AppLovin’s revenue for the quarter was up 52.8% compared to the same quarter last year. During the same quarter last year, the company earned $2.39 EPS. Equities analysts anticipate that AppLovin Corporation will post 15.57 earnings per share for the current fiscal year.

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.