AppLovin (NASDAQ:APP) Earns Outperform Rating from Wedbush

Key Points

• Wedbush reiterated an "Outperform" rating on AppLovin with a $640 price target, implying roughly a 26% upside from the current share price.
• AppLovin reported strong Q1 results—revenue of $1.84B (+58.9% YoY) and EPS of $3.56, both beating estimates—and raised Q2 revenue guidance (midpoint ~ $1.93B), citing continued AI-driven ad demand.
• Insiders have been net sellers recently, unloading 365,244 shares (~$169.6M) over the last three months, though company insiders still own about 13.66% of the stock.

AppLovin (NASDAQ:APP - Get Free Report)'s stock had its "outperform" rating reiterated by equities researchers at Wedbush in a research report issued to clients and investors on Thursday,Benzinga reports. They currently have a $640.00 price target on the stock. Wedbush's price target indicates a potential upside of 26.20% from the stock's current price.

Other analysts also recently issued research reports about the stock. Benchmark reiterated a "buy" rating on shares of AppLovin in a research report on Friday, March 6th. Evercore restated a "buy" rating on shares of AppLovin in a research note on Friday, January 30th. Morgan Stanley set a $720.00 price target on shares of AppLovin in a research report on Thursday, February 12th. Jefferies Financial Group lowered their price target on AppLovin from $860.00 to $700.00 and set a "buy" rating on the stock in a report on Thursday, February 12th. Finally, Piper Sandler upped their target price on AppLovin from $650.00 to $665.00 and gave the company an "overweight" rating in a report on Thursday. One equities research analyst has rated the stock with a Strong Buy rating, seventeen have given a Buy rating and five have issued a Hold rating to the company. According to data from MarketBeat, the company currently has a consensus rating of "Moderate Buy" and an average target price of $672.80.

AppLovin Stock Up 8.2%

Shares of APP traded up $38.29 during mid-day trading on Thursday, hitting $507.12. 7,218,546 shares of the company's stock were exchanged, compared to its average volume of 5,552,575. The company has a debt-to-equity ratio of 1.65, a quick ratio of 3.32 and a current ratio of 3.32. The company has a market cap of $171.04 billion, a price-to-earnings ratio of 52.00, a P/E/G ratio of 0.83 and a beta of 2.37. The stock's 50-day moving average is $440.72 and its 200-day moving average is $533.67. AppLovin has a fifty-two week low of $320.00 and a fifty-two week high of $745.61.

AppLovin (NASDAQ:APP - Get Free Report) last announced its earnings results on Wednesday, May 6th. The company reported $3.56 earnings per share for the quarter, topping the consensus estimate of $3.44 by $0.12. AppLovin had a net margin of 57.42% and a return on equity of 245.64%. The firm had revenue of $1.84 billion for the quarter, compared to the consensus estimate of $1.77 billion. During the same period in the prior year, the firm earned $1.67 EPS. The firm's revenue for the quarter was up 58.9% on a year-over-year basis. On average, sell-side analysts anticipate that AppLovin will post 15.72 earnings per share for the current fiscal year.

Insider Buying and Selling

In related news, CTO Vasily Shikin sold 5,231 shares of the stock in a transaction on Tuesday, March 10th. The stock was sold at an average price of $477.47, for a total value of $2,497,645.57. Following the completion of the sale, the chief technology officer directly owned 30,658 shares in the company, valued at approximately $14,638,275.26. This represents a 14.58% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Also, CEO Arash Adam Foroughi sold 40,704 shares of the firm's stock in a transaction dated Thursday, March 12th. The shares were sold at an average price of $459.85, for a total value of $18,717,734.40. Following the sale, the chief executive officer owned 2,430,414 shares in the company, valued at approximately $1,117,625,877.90. The trade was a 1.65% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. In the last three months, insiders sold 365,244 shares of company stock valued at $169,584,607. Company insiders own 13.66% of the company's stock.

Institutional Trading of AppLovin

A number of institutional investors and hedge funds have recently made changes to their positions in the stock. Washington Trust Advisors Inc. lifted its holdings in AppLovin by 160.0% in the fourth quarter. Washington Trust Advisors Inc. now owns 39 shares of the company's stock worth $27,000 after purchasing an additional 24 shares during the period. Chilton Capital Management LLC acquired a new position in AppLovin in the third quarter worth approximately $29,000. Board of the Pension Protection Fund bought a new position in shares of AppLovin in the fourth quarter valued at $27,000. Mcguire Capital Advisors Inc. bought a new stake in shares of AppLovin during the 4th quarter worth $27,000. Finally, Activest Wealth Management lifted its holdings in shares of AppLovin by 760.0% during the third quarter. Activest Wealth Management now owns 43 shares of the company's stock valued at $31,000 after purchasing an additional 38 shares during the last quarter. 41.85% of the stock is currently owned by institutional investors and hedge funds.

Key Stories Impacting AppLovin

Here are the key news stories impacting AppLovin this week:

• Positive Sentiment: Q1 beat — AppLovin reported revenue of $1.84B (+59% YoY) and adjusted EPS of $3.56, topping Street estimates and showing strong top- and bottom-line execution. AppLovin Announces First Quarter 2026 Financial Results
• Positive Sentiment: Raised guidance — Management updated Q2 revenue guidance (midpoint ~$1.93B), modestly above consensus, signaling continued AI ad demand into the quarter. AppLovin tops Q1 earnings expectations on AI-driven ad growth
• Positive Sentiment: Very strong profitability — Coverage highlights that AppLovin converts a large share of revenue into profit (high net margin / conversion ratios), boosting free-cash-flow economics and investor confidence. AppLovin Is Printing Money
• Positive Sentiment: Analyst support — Several firms have reaffirmed buys or raised targets (Needham, BTIG, 24/7WallSt.), lifting sentiment and providing upside price-target catalysts. Analyst coverage and price-target updates
• Neutral Sentiment: Transcript & investor materials available — The earnings call transcript and investor presentation provide detail on ad product traction, AI tooling and margin drivers; useful for investors who want to dig into unit economics and channel mixes. AppLovin Q1 2026 Earnings Call Transcript
• Neutral Sentiment: Macro / thematic context — Coverage ties AppLovin to the broader AI/gaming ad rally; thematic flows can amplify moves in either direction. Bristlemoon: AppLovin is an Applied AI Winner
• Negative Sentiment: Volatility and profit-taking — Several outlets noted the stock initially popped then pulled back as traders digested details, leading to choppy intraday trading. High beta increases risk of reversals. AppLovin Stock Slips As AI Platform's Report Triggers Volatile Trading
• Negative Sentiment: Some investors still selling into strength — Reports of shares dipping despite the beat suggest short-term traders are trimming positions; valuation (P/E above 50) and a 200‑day moving average above current price are watch-points for longer-term buyers. AppLovin Shares Dip Despite Earnings Beat And Raised Outlook

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.

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