AppLovin (NASDAQ:APP) Cut to “Hold” at Zacks Research

Zacks Research lowered shares of AppLovin (NASDAQ:APP) from a strong-buy rating to a hold rating in a report published on Thursday morning,Zacks.com reports.

Other equities analysts have also issued reports about the stock. Benchmark reaffirmed a “buy” rating on shares of AppLovin in a report on Monday, February 2nd. UBS Group set a $740.00 price objective on shares of AppLovin in a report on Thursday. Wells Fargo & Company lowered their target price on shares of AppLovin from $735.00 to $543.00 and set an “overweight” rating on the stock in a research note on Thursday. Evercore restated a “buy” rating on shares of AppLovin in a research report on Friday, January 30th. Finally, Weiss Ratings cut AppLovin from a “buy (b-)” rating to a “hold (c+)” rating in a report on Thursday, January 15th. Twenty research analysts have rated the stock with a Buy rating, four have assigned a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat, the company presently has an average rating of “Moderate Buy” and an average price target of $651.77.

AppLovin Stock Up 6.7%

AppLovin stock opened at $391.55 on Thursday. AppLovin has a 1-year low of $200.50 and a 1-year high of $745.61. The stock has a market capitalization of $132.32 billion, a price-to-earnings ratio of 40.16, a PEG ratio of 1.28 and a beta of 2.49. The company has a debt-to-equity ratio of 1.65, a current ratio of 3.32 and a quick ratio of 3.25. The business has a fifty day moving average price of $596.51 and a 200-day moving average price of $571.78.

AppLovin (NASDAQ:APP) last issued its quarterly earnings results on Wednesday, February 11th. The company reported $3.24 EPS 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 analysts’ expectations of $1.61 billion. AppLovin had a return on equity of 245.64% and a net margin of 57.42%.The firm’s revenue was up 66.0% compared to the same quarter last year. During the same quarter in the previous year, the firm posted $1.73 EPS. Equities research analysts forecast that AppLovin will post 6.87 EPS for the current fiscal year.

Insider Activity at AppLovin

In other AppLovin news, CEO Arash Adam Foroughi sold 4,069 shares of the firm’s stock in a transaction on Friday, November 21st. The stock was sold at an average price of $497.50, for a total value of $2,024,327.50. Following the sale, the chief executive officer owned 2,998,948 shares of the company’s stock, valued at approximately $1,491,976,630. This trade represents a 0.14% decrease in their position. The sale was disclosed in a document filed with the SEC, which can be accessed through the SEC website. Also, Director Dawson Alyssa Harvey sold 150 shares of the business’s stock in a transaction on Monday, December 8th. The stock was sold at an average price of $693.32, for a total value of $103,998.00. Following the transaction, the director directly owned 2,829 shares of the company’s stock, valued at $1,961,402.28. This trade represents a 5.04% decrease in their position. The disclosure for this sale is available in the SEC filing. Over the last 90 days, insiders sold 187,786 shares of company stock worth $100,914,925. 13.66% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently bought and sold shares of APP. Arete Wealth Advisors LLC raised its stake in AppLovin by 53.7% during the fourth quarter. Arete Wealth Advisors LLC now owns 4,946 shares of the company’s stock worth $3,333,000 after acquiring an additional 1,727 shares in the last quarter. Kestra Advisory Services LLC grew its holdings in shares of AppLovin by 0.8% during the 4th quarter. Kestra Advisory Services LLC now owns 8,519 shares of the company’s stock valued at $5,740,000 after purchasing an additional 68 shares during the last quarter. Liberty One Investment Management LLC acquired a new position in AppLovin during the 4th quarter worth approximately $179,000. Transamerica Financial Advisors LLC lifted its stake in AppLovin by 79.2% in the 4th quarter. Transamerica Financial Advisors LLC now owns 215 shares of the company’s stock valued at $145,000 after purchasing an additional 95 shares during the last quarter. Finally, Parkside Financial Bank & Trust boosted its position in AppLovin by 19.9% in the fourth quarter. Parkside Financial Bank & Trust now owns 1,321 shares of the company’s stock valued at $890,000 after buying an additional 219 shares in the last quarter. Institutional investors own 41.85% of the company’s stock.

AppLovin News Summary

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

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.