AppLovin (NASDAQ:APP) Stock Price Expected to Rise, Royal Bank Of Canada Analyst Says

Key Points

• Royal Bank of Canada raised AppLovin’s price target to $520 from $500 and maintained an “outperform” rating, implying 47.48% upside from the previous close.
• AppLovin beat quarterly estimates, reporting $2.18 billion in revenue, up 55.5% year over year, and $4.30 EPS; its shares rose $80.85 to $352.60 on Thursday.
• Analyst views are broadly positive: MarketBeat’s consensus is “Moderate Buy” with a $497.14 target, though several firms have cut targets or ratings. The article also notes securities-fraud allegations in a pending class action, which remain unproven.

AppLovin (NASDAQ:APP - Get Free Report) had its target price upped by equities researchers at Royal Bank Of Canada from $500.00 to $520.00 in a research report issued on Thursday, Benzinga reports. The firm currently has an "outperform" rating on the stock. Royal Bank Of Canada's price target would suggest a potential upside of 47.48% from the stock's previous close.

A number of other research analysts have also weighed in on APP. Bank of America lowered AppLovin from a "buy" rating to a "neutral" rating and decreased their price objective for the company from $430.00 to $400.00 in a report on Tuesday, August 11th. HSBC decreased their price target on AppLovin from $450.00 to $409.00 and set a "buy" rating on the stock in a research note on Monday, October 5th. BTIG Research increased their target price on shares of AppLovin from $396.00 to $450.00 and gave the stock a "buy" rating in a report on Thursday. The Goldman Sachs Group boosted their target price on shares of AppLovin from $400.00 to $445.00 and gave the stock a "neutral" rating in a research note on Thursday. Finally, Phillip Securities raised shares of AppLovin from a "moderate buy" rating to a "strong-buy" rating and dropped their target price for the company from $635.00 to $610.00 in a research report on Tuesday, August 11th. Three research analysts have rated the stock with a Strong Buy rating, seventeen have given a Buy rating and eight have issued a Hold rating to the company. According to MarketBeat.com, AppLovin has an average rating of "Moderate Buy" and a consensus price target of $497.14.

AppLovin Stock Performance

Shares of APP stock traded up $80.85 during trading hours on Thursday, hitting $352.60. The company's stock had a trading volume of 17,088,313 shares, compared to its average volume of 5,568,994. The company has a 50 day moving average of $290.82 and a 200 day moving average of $411.84. The stock has a market cap of $118.00 billion, a PE ratio of 27.19, a price-to-earnings-growth ratio of 0.55 and a beta of 2.51. The company has a current ratio of 4.30, a quick ratio of 4.30 and a debt-to-equity ratio of 1.11. AppLovin has a 12-month low of $225.19 and a 12-month high of $738.01.

AppLovin (NASDAQ:APP - Get Free Report) last issued its earnings results on Wednesday, November 4th. The company reported $4.30 EPS for the quarter, topping analysts' consensus estimates of $4.03 by $0.27. AppLovin had a return on equity of 193.10% and a net margin of 64.58%. The firm had revenue of $2.18 billion for the quarter, compared to the consensus estimate of $2.07 billion. During the same quarter in the prior year, the business earned $2.45 earnings per share. The company's revenue was up 55.5% compared to the same quarter last year. On average, sell-side analysts forecast that AppLovin will post 15.61 EPS for the current fiscal year.

Hedge Funds Weigh In On AppLovin

Hedge funds have recently bought and sold shares of the company. Signature Estate & Investment Advisors LLC grew its holdings in AppLovin by 3,695.3% in the 2nd quarter. Signature Estate & Investment Advisors LLC now owns 76,361 shares of the company's stock worth $39,345,000 after buying an additional 74,349 shares in the last quarter. Insight Wealth Strategies LLC acquired a new stake in AppLovin in the 2nd quarter valued at approximately $6,939,000. Generate Investment Management Ltd bought a new stake in AppLovin during the 2nd quarter valued at $7,226,000. Saudi Central Bank raised its stake in AppLovin by 88.7% during the 2nd quarter. Saudi Central Bank now owns 16,070 shares of the company's stock valued at $8,280,000 after acquiring an additional 7,555 shares in the last quarter. Finally, Nykredit A S bought a new stake in AppLovin during the 2nd quarter valued at $41,902,000. 41.85% of the stock is owned by hedge funds and other institutional investors.

Trending Headlines about AppLovin

Here are the key news stories impacting AppLovin this week:

• Positive Sentiment: AppLovin reported Q3 revenue of $2.18 billion, up 55.5% year over year, and earnings of $4.30 per share, beating analyst expectations. Net income rose 72%, underscoring the profitability of its AI-powered advertising platform. Q3 results
• Positive Sentiment: Q4 revenue guidance of $2.365 billion to $2.395 billion came in above expectations. The company also reported $1.4 billion in free cash flow and expanded its share-repurchase authorization to $3.6 billion, supporting its growth outlook and shareholder returns. Q4 outlook
• Positive Sentiment: Analysts maintained positive ratings and raised targets after the results: Oppenheimer lifted its target to $520, BTIG to $450, and Needham reaffirmed its $475 target. Analyst forecast changes
• Neutral Sentiment: The rally occurred despite a steep Nasdaq-100 decline, highlighting the earnings-driven nature of the move; broader market volatility may still affect the shares. Market and AppLovin move
• Negative Sentiment: Several law firms publicized a pending securities class action alleging AppLovin misled investors about the readiness and adoption of its AI models and self-service advertising tools. The allegations are not proven, but the litigation could create legal costs and reputational risk; the announced lead-plaintiff deadline is November 16. Class-action notice

AppLovin Company Profile

AppLovin Corporation is a technology company that provides software and services designed to help mobile application developers grow, monetize and operate their businesses. Its platform supports user acquisition, advertising, mediation, analytics and other functions across the mobile app ecosystem.

The company's principal products include AppDiscovery, which helps developers market their applications and acquire users; MAX, an in-app bidding and monetization platform; and its AXON technology, an artificial intelligence-powered engine intended to improve advertising performance and match users with relevant applications and content.

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