AppLovin (NASDAQ:APP) Stock Price Target Cut by Royal Bank Of Canada

Key Points

• Royal Bank of Canada cut AppLovin’s price target from $575 to $500 while maintaining an “outperform” rating, implying roughly 94% upside from the reported $257.42 share price.
• AppLovin shares fell to $257.42, near their 52-week low of $255.46. Despite several target reductions, analysts maintain a “Moderate Buy” consensus with an average price target of $491.64.
• The company’s latest quarterly results showed adjusted EPS of $3.76 and 52.8% year-over-year revenue growth, although revenue slightly missed estimates; meanwhile, securities class-action lawsuits allege management overstated progress in its AI advertising models and generative-AI video product.

AppLovin (NASDAQ:APP - Get Free Report) had its price target cut by equities researchers at Royal Bank Of Canada from $575.00 to $500.00 in a report issued on Wednesday, Benzinga reports. The firm presently has an "outperform" rating on the stock. Royal Bank Of Canada's price target indicates a potential upside of 94.23% from the company's current price.

A number of other research analysts have also recently issued reports on the stock. Citigroup reduced their price objective on shares of AppLovin from $600.00 to $500.00 and set a "buy" rating for the company in a report on Monday, October 19th. William Blair set a $440.00 target price on shares of AppLovin in a report on Monday, August 17th. Benchmark dropped their price target on shares of AppLovin from $500.00 to $440.00 and set a "buy" rating on the stock in a research report on Monday, August 17th. Evercore reiterated an "outperform" rating and set a $510.00 price target (down from $630.00) on shares of AppLovin in a research note on Tuesday, September 1st. Finally, Deutsche Bank Aktiengesellschaft decreased their price objective on AppLovin from $660.00 to $580.00 and set a "buy" rating for the company in a report on Thursday, August 6th. Three research analysts have rated the stock with a Strong Buy rating, seventeen have given a Buy rating and eight have assigned a Hold rating to the company. Based on data from MarketBeat.com, the stock currently has a consensus rating of "Moderate Buy" and an average price target of $491.64.

AppLovin Price Performance

Shares of APP stock traded down $5.40 on Wednesday, reaching $257.42. 560,007 shares of the company were exchanged, compared to its average volume of 5,459,738. The company has a 50-day moving average of $297.87 and a 200-day moving average of $423.48. AppLovin has a one year low of $255.46 and a one year high of $738.01. The company has a market cap of $86.15 billion, a price-to-earnings ratio of 19.83 and a beta of 2.56.

AppLovin (NASDAQ:APP - Get Free Report) last announced its quarterly earnings data on Wednesday, August 5th. The company reported $3.76 EPS for the quarter, meeting analysts' consensus estimates of $3.76. The firm had revenue of $1.92 billion during the quarter, compared to analyst estimates of $1.94 billion. During the same period last year, the business posted $2.39 EPS. The company's revenue was up 52.8% on a year-over-year basis. As a group, sell-side analysts predict that AppLovin will post 15.67 EPS for the current year.

Hedge Funds Weigh In On AppLovin

Institutional investors have recently added to or reduced their stakes in the stock. State Street Corp increased its position in AppLovin by 28.3% in the second quarter. State Street Corp now owns 15,095,667 shares of the company's stock worth $7,777,741,000 after buying an additional 3,328,338 shares during the last quarter. WCM Investment Management LLC lifted its position in shares of AppLovin by 5.2% during the 1st quarter. WCM Investment Management LLC now owns 5,001,600 shares of the company's stock valued at $1,860,995,000 after buying an additional 245,290 shares during the last quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC grew its stake in shares of AppLovin by 7.5% during the 2nd quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 1,735,471 shares of the company's stock worth $894,167,000 after acquiring an additional 121,605 shares during the period. Bank of New York Mellon Corp bought a new position in shares of AppLovin during the 2nd quarter worth $730,015,000. Finally, Amundi increased its holdings in AppLovin by 19.5% in the 2nd quarter. Amundi now owns 1,332,633 shares of the company's stock worth $686,612,000 after acquiring an additional 217,214 shares during the last quarter. Institutional investors own 41.85% of the company's stock.

Key Stories Impacting AppLovin

Here are the key news stories impacting AppLovin this week:

• Positive Sentiment: No new operational deterioration or earnings miss was reported in the latest items. AppLovin’s most recent quarterly results included $3.76 in adjusted earnings per share, in line with consensus, while revenue increased 52.8% year over year, although revenue fell slightly short of estimates.
• Neutral Sentiment: A Zacks comparison said UiPath’s improving profitability and lower valuation may make it a stronger AI investment than AppLovin, despite AppLovin’s faster-growing advertising business. This is an analyst-style comparison rather than a company-specific announcement. Zacks comparison of UiPath and AppLovin
• Neutral Sentiment: One market-data item reported zero short interest as of October 26, implying no measurable short-selling overhang; however, the figure may reflect a data anomaly and provides limited directional insight.
• Negative Sentiment: Multiple firms, including Kaplan Fox, Rosen, Hagens Berman, Pomerantz, Robbins, and others, are promoting or representing a securities class action filed in federal court. The lawsuit covers investors who purchased AppLovin securities primarily between February 12 and August 5, 2026, with a November 16, 2026 deadline to seek lead-plaintiff status. Pomerantz AppLovin class action announcement
• Negative Sentiment: The allegations center on claims that management overstated the pace of improvement in AppLovin’s AI advertising models and the rollout of its generative-AI video tool. The case points to a July analyst report and the company’s August 5 results, when AppLovin reportedly described model improvement as “lighter than normal” and the video product as still in development. These allegations raise potential litigation costs, reputational risk, and questions about the durability of AppLovin’s growth narrative. Levi and Korsinsky AppLovin lawsuit notice

About AppLovin

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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