AppLovin (NASDAQ:APP) Issues Quarterly Earnings Results, Beats Estimates By $0.35 EPS

AppLovin (NASDAQ:APP) issued its earnings results on Wednesday. The company reported $3.24 EPS for the quarter, topping the consensus estimate of $2.89 by $0.35, Zacks reports. The company had revenue of $1.66 billion for the quarter, compared to analyst estimates of $1.61 billion. AppLovin had a net margin of 51.27% and a return on equity of 258.49%.

AppLovin Trading Down 3.4%

NASDAQ APP traded down $16.11 on Wednesday, reaching $456.81. The company had a trading volume of 7,420,318 shares, compared to its average volume of 6,384,857. AppLovin has a fifty-two week low of $200.50 and a fifty-two week high of $745.61. The business has a 50 day moving average of $612.96 and a two-hundred day moving average of $572.41. The firm has a market cap of $154.38 billion, a price-to-earnings ratio of 55.44, a P/E/G ratio of 1.52 and a beta of 2.49. The company has a debt-to-equity ratio of 2.38, a current ratio of 3.25 and a quick ratio of 3.25.

Analyst Ratings Changes

Several research firms recently weighed in on APP. Piper Sandler reiterated an “overweight” rating on shares of AppLovin in a research note on Tuesday, January 20th. Jefferies Financial Group lifted their price objective on AppLovin from $800.00 to $860.00 and gave the company a “buy” rating in a research report on Thursday, December 11th. Scotiabank boosted their target price on shares of AppLovin from $575.00 to $750.00 and gave the stock an “outperform” rating in a research report on Thursday, November 6th. Benchmark restated a “buy” rating on shares of AppLovin in a research report on Monday, February 2nd. Finally, BTIG Research restated a “buy” rating and issued a $771.00 target price on shares of AppLovin in a research note on Wednesday, December 17th. One investment analyst has rated the stock with a Strong Buy rating, twenty have assigned a Buy rating, three have issued a Hold rating and one has assigned a Sell rating to the company’s stock. Based on data from MarketBeat.com, AppLovin currently has a consensus rating of “Moderate Buy” and an average price target of $686.05.

Insider Buying and Selling at AppLovin

In other AppLovin news, CTO Vasily Shikin sold 14,708 shares of the stock in a transaction dated Monday, November 24th. The shares were sold at an average price of $548.45, for a total value of $8,066,602.60. Following the completion of the sale, the chief technology officer owned 35,889 shares in the company, valued at approximately $19,683,322.05. This trade represents a 29.07% decrease in their position. The transaction was disclosed in a filing with the SEC, which is accessible through the SEC website. Also, insider Victoria Valenzuela sold 7,609 shares of the firm’s stock in a transaction that occurred on Thursday, December 18th. The stock was sold at an average price of $657.13, for a total transaction of $5,000,102.17. Following the completion of the transaction, the insider directly owned 277,110 shares of the company’s stock, valued at approximately $182,097,294.30. This trade represents a 2.67% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. In the last quarter, insiders sold 187,786 shares of company stock worth $100,914,925. 13.66% of the stock is owned by company insiders.

Hedge Funds Weigh In On AppLovin

Hedge funds have recently modified their holdings of the company. State Street Corp boosted its position in shares of AppLovin by 111.1% during the 3rd quarter. State Street Corp now owns 11,852,466 shares of the company’s stock valued at $8,516,471,000 after acquiring an additional 6,237,051 shares during the last quarter. Northern Trust Corp raised its holdings in AppLovin by 46.8% in the third quarter. Northern Trust Corp now owns 2,374,460 shares of the company’s stock worth $1,706,144,000 after purchasing an additional 756,660 shares in the last quarter. Canada Pension Plan Investment Board boosted its position in shares of AppLovin by 204.8% in the 2nd quarter. Canada Pension Plan Investment Board now owns 425,622 shares of the company’s stock worth $149,002,000 after purchasing an additional 285,970 shares in the last quarter. Zurich Insurance Group Ltd FI acquired a new position in AppLovin during the 3rd quarter valued at approximately $199,736,000. Finally, Wellington Management Group LLP raised its stake in shares of AppLovin by 63.1% in the third quarter. Wellington Management Group LLP now owns 693,874 shares of the company’s stock worth $498,576,000 after purchasing an additional 268,480 shares during the last quarter. 41.85% of the stock is currently owned by institutional investors.

Key AppLovin News

Here are the key news stories impacting AppLovin this week:

• Positive Sentiment: Short-seller retraction lifted sentiment — CapitalWatch apologized and retracted money‑laundering claims tied to a shareholder, triggering a big intraday jump and putting APP among S&P leaders as investors stepped back into the stock. Article Title
• Positive Sentiment: Strong earnings outlook ahead of results — previews show analysts expect sizable Q4 earnings growth (~78%) with e-commerce and gaming performance key to the print, supporting upside into the report. Article Title
• Positive Sentiment: Bullish technical/idea flow — traders and outlets are highlighting a breakout/setup around the $466 level and thematic buy-the-dip arguments citing AI, e-commerce, and product rollouts (Axon 2.0) that could accelerate revenue/ROAS improvements. Article Title
• Neutral Sentiment: Short-interest data is noisy/meaningless in recent print — the published figures show 0 shares/NaN changes and a 0.0 day ratio, so short-interest isn’t a clear signal right now and shouldn’t be overinterpreted.
• Neutral Sentiment: Industry positioning — APP is being cited in lists of software names that may be resilient to AI disruption, which is a thematic plus but not an immediate price driver. Article Title
• Negative Sentiment: Sentiment and valuation caution persists — high expectations and commentary from personalities like Jim Cramer (“not so magical now”) underscore that some investors remain skeptical; APP still trades at a premium multiple, leaving it sensitive to any softness in the upcoming earnings print. Article Title

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.