AppLovin (NASDAQ:APP) Stock Price Up 6.7% on Analyst Upgrade

AppLovin Corporation (NASDAQ:APP)’s stock price traded up 6.7% during mid-day trading on Friday after Scotiabank raised their price target on the stock from $750.00 to $775.00. Scotiabank currently has a sector outperform rating on the stock. AppLovin traded as high as $391.85 and last traded at $391.5510. 9,037,691 shares traded hands during mid-day trading, an increase of 28% from the average session volume of 7,036,557 shares. The stock had previously closed at $366.91.

Several other analysts have also commented on the stock. Citigroup lowered their price objective on shares of AppLovin from $850.00 to $820.00 and set a “buy” rating on the stock in a research report on Wednesday, November 12th. BTIG Research decreased their price target on shares of AppLovin from $771.00 to $640.00 and set a “buy” rating for the company in a research note on Thursday. Wells Fargo & Company lowered their price target on shares of AppLovin from $735.00 to $543.00 and set an “overweight” rating on the stock in a report on Thursday. Morgan Stanley set a $720.00 price objective on AppLovin in a research note on Thursday. Finally, Zacks Research raised AppLovin from a “hold” rating to a “strong-buy” rating in a research report on Thursday, January 1st. One research analyst has rated the stock with a Strong Buy rating, twenty have issued a Buy rating, three have issued a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat.com, the stock currently has an average rating of “Moderate Buy” and an average price target of $651.77.

Insider Buying and Selling

In other news, CEO Arash Adam Foroughi sold 4,069 shares of the company’s stock in a transaction dated Friday, November 21st. The stock was sold at an average price of $497.50, for a total transaction of $2,024,327.50. Following the sale, the chief executive officer directly owned 2,998,948 shares in the company, valued at $1,491,976,630. This represents a 0.14% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available at this link. Also, Director Dawson Alyssa Harvey sold 150 shares of the stock in a transaction dated Monday, December 8th. The stock was sold at an average price of $693.32, for a total transaction of $103,998.00. Following the completion of the sale, the director directly owned 2,829 shares in the company, valued at approximately $1,961,402.28. The trade was a 5.04% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. In the last 90 days, insiders have sold 187,786 shares of company stock valued at $100,914,925. 13.66% of the stock is owned by company insiders.

Key Headlines Impacting AppLovin

Here are the key news stories impacting AppLovin this week:

• Positive Sentiment: Q4 beat and raise — AppLovin reported stronger‑than‑expected Q4 revenue and EPS and issued 2026 guidance above Street estimates, giving investors a fundamentals‑driven reason to buy the stock. AppLovin (APP) Q4 Earnings and Revenues Surpass Estimates
• Positive Sentiment: Outstanding margins and cash flow — management reported ~84% adjusted EBITDA margins and very high free‑cash‑flow conversion, highlighting durable profitability that supports a premium valuation. AppLovin Rides on Margin Power: Here’s What You Should Know
• Positive Sentiment: Analyst support and buybacks — several firms reaffirmed or raised targets (and management disclosed large buybacks / cash generation commentary), which helps underwrite the rebound narrative. AppLovin price target raised by Wedbush
• Neutral Sentiment: Mixed analyst moves — although many shops kept Buy/Outperform ratings, several groups trimmed price targets after the volatility; this creates both support and room for further target revisions. Wells Fargo price target change and analyst notes
• Neutral Sentiment: Short‑interest data appears noisy/insignificant in recent reports (entries show zero/NaN), so shorting pressure doesn’t explain today’s move. (No meaningful short interest link available.)
• Negative Sentiment: Competition and AI fears — investors remain worried about potential competition (CloudX) and whether large platforms like Meta could encroach on AppLovin’s adtech niche; that fear helped trigger sharp earlier selloffs. AppLovin Plunges 18% Despite Blowout Earnings as AI Fears Rule
• Negative Sentiment: Broader software/AI rotation — the market‑wide re‑pricing of software names and headlines about a sector pullback have pressured APP despite the company’s strong quarter, prolonging volatility. Tech Stocks Down 50%: Buy the Dip or a Major Market Shift?
• Negative Sentiment: Market panic narrative — several commentators say recent selling was driven more by fear than fundamentals, meaning sentiment swings can still produce abrupt downside even after good results. AppLovin drops over competitor concerns, but analysts highlight positive growth drivers

Institutional Investors Weigh In On AppLovin

Hedge funds have recently bought and sold shares of the stock. LFA Lugano Financial Advisors SA bought a new stake in shares of AppLovin during the 2nd quarter worth $26,000. Board of the Pension Protection Fund purchased a new stake in AppLovin during the fourth quarter valued at about $27,000. Washington Trust Advisors Inc. raised its position in AppLovin by 160.0% during 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. Chilton Capital Management LLC bought a new stake in AppLovin during the third quarter worth about $29,000. Finally, Activest Wealth Management boosted its holdings in shares of AppLovin by 760.0% in the 3rd quarter. Activest Wealth Management now owns 43 shares of the company’s stock worth $31,000 after purchasing an additional 38 shares in the last quarter. 41.85% of the stock is currently owned by institutional investors.

AppLovin Price Performance

The company has a current ratio of 3.32, a quick ratio of 3.25 and a debt-to-equity ratio of 1.65. The stock has a market capitalization of $132.32 billion, a PE ratio of 40.16, a PEG ratio of 1.20 and a beta of 2.49. The business has a fifty day moving average price of $596.51 and a 200-day moving average price of $570.32.

AppLovin (NASDAQ:APP) last released its earnings results on Wednesday, February 11th. The company reported $3.24 earnings per share for the quarter, topping analysts’ consensus estimates of $2.89 by $0.35. The company had revenue of $1.66 billion during the quarter, compared to the consensus estimate of $1.61 billion. AppLovin had a return on equity of 245.64% and a net margin of 57.42%.AppLovin’s quarterly revenue was up 66.0% compared to the same quarter last year. During the same quarter in the previous year, the company posted $1.73 EPS. Research analysts expect that AppLovin Corporation will post 6.87 EPS 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.