Wells Fargo & Company Issues Positive Forecast for AppLovin (NASDAQ:APP) Stock Price

Key Points

• Wells Fargo raised its AppLovin price target to $347 from $325 but kept an “equal weight” rating; the target implies 9.06% downside from the prior close.
• AppLovin reported quarterly EPS of $4.30 and revenue of $2.18 billion, beating analyst estimates; revenue increased 55.5% year over year.
• Analyst sentiment overall remains positive: MarketBeat reports a “Moderate Buy” consensus and an average price target of $497.93, though recent target changes vary.

AppLovin (NASDAQ:APP - Get Free Report) had its target price boosted by stock analysts at Wells Fargo & Company from $325.00 to $347.00 in a report released on Friday, Benzinga reports. The firm currently has an "equal weight" rating on the stock. Wells Fargo & Company's price objective suggests a potential downside of 9.06% from the stock's previous close.

Other equities research analysts have also recently issued reports about the company. Piper Sandler restated a "neutral" rating and set a $355.00 target price (up from $325.00) on shares of AppLovin in a research note on Thursday. Deutsche Bank Aktiengesellschaft decreased their price target on AppLovin from $660.00 to $580.00 and set a "buy" rating on the stock in a research note on Thursday, August 6th. Citigroup lowered their price target on AppLovin from $600.00 to $500.00 and set a "buy" rating for the company in a report on Monday, October 19th. BTIG Research upped their price objective on AppLovin from $396.00 to $450.00 and gave the stock a "buy" rating in a research report on Thursday. Finally, The Goldman Sachs Group raised their price objective on AppLovin from $400.00 to $445.00 and gave the company a "neutral" rating in a research note on Thursday. Three analysts have rated the stock with a Strong Buy rating, seventeen have given a Buy rating and eight have given a Hold rating to the company's stock. According to data from MarketBeat, the stock currently has a consensus rating of "Moderate Buy" and a consensus price target of $497.93.

AppLovin Stock Performance

NASDAQ APP traded up $25.47 during trading on Friday, reaching $381.57. The company's stock had a trading volume of 2,626,637 shares, compared to its average volume of 5,577,015. The firm has a 50 day moving average price of $291.78 and a 200 day moving average price of $410.78. AppLovin has a 12 month low of $225.19 and a 12 month high of $738.01. The firm has a market capitalization of $127.69 billion, a price-to-earnings ratio of 25.46, a price-to-earnings-growth ratio of 0.60 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 (NASDAQ:APP - Get Free Report) last announced its earnings results on Wednesday, November 4th. The company reported $4.30 EPS for the quarter, topping the consensus estimate of $4.03 by $0.27. The company had revenue of $2.18 billion for the quarter, compared to analysts' expectations of $2.07 billion. AppLovin had a net margin of 65.89% and a return on equity of 196.31%. The business's revenue for the quarter was up 55.5% on a year-over-year basis. During the same period last year, the firm earned $2.45 earnings per share. As a group, equities analysts anticipate that AppLovin will post 15.61 EPS for the current fiscal year.

Hedge Funds Weigh In On AppLovin

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

Key Headlines Impacting 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 EPS of $4.30, above analyst expectations. Net income rose 72% to $1.44 billion, reflecting strong profitability from its advertising platform. AppLovin Q3 results
• Positive Sentiment: Q4 revenue guidance of $2.365 billion–$2.395 billion came in above analyst estimates, reinforcing expectations that growth can continue as the company expands its AI-driven ad models. Q4 revenue outlook
• Positive Sentiment: The company expanded its share-repurchase authorization to $3.6 billion. Strong cash generation gives it capacity to return capital to shareholders. Buyback and cash generation
• Positive Sentiment: Royal Bank of Canada raised its price target to $520 from $500 and reaffirmed an Outperform rating; Oppenheimer also lifted its target to $520 and maintained Outperform. RBC forecast
• Neutral Sentiment: Analysts see growth potential as the AI advertising rollout continues, but some caution that the rollout is still partial and long-term growth visibility is not yet settled. Analyst view on growth visibility
• Negative Sentiment: A securities class action alleges AppLovin and certain officers made misleading statements about AI model readiness and ad-tool development. The claims are allegations, but the litigation could create legal costs and reputational risk. Class action announcement

AppLovin Company Profile

AppLovin is a technology company that provides software to help mobile app developers and advertisers grow their businesses. Its platform connects advertisers seeking users with app publishers looking to monetize their audiences, using data and machine-learning tools to support advertising and user acquisition.

The company's products include AXON, its advertising optimization engine; AppDiscovery, which helps advertisers find and acquire users; and MAX, a platform for managing in-app advertising.

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