AppLovin (NASDAQ:APP) Shares Down 2% - Here's Why

Key Points

• AppLovin's shares fell by 2%, trading at $704.09, with a significant drop in daily trading volume compared to its average.
• The company reported better-than-expected quarterly earnings of $2.26 EPS, surpassing analyst estimates, although revenue fell short of expectations.
• Several analysts have raised their target prices for AppLovin, reflecting strong confidence in the stock, with the consensus rating currently at "Moderate Buy."

AppLovin Corporation (NASDAQ:APP - Get Free Report)'s share price traded down 2% on Wednesday . The stock traded as low as $697.51 and last traded at $704.09. 6,189,251 shares traded hands during mid-day trading, a decline of 17% from the average session volume of 7,460,161 shares. The stock had previously closed at $718.54.

Analyst Ratings Changes

Several research analysts recently weighed in on the stock. Scotiabank reaffirmed an "outperform" rating on shares of AppLovin in a report on Thursday, August 28th. Benchmark upped their target price on shares of AppLovin from $525.00 to $640.00 and gave the stock a "buy" rating in a report on Monday, September 15th. Phillip Securities raised shares of AppLovin to a "moderate buy" rating in a report on Monday. Piper Sandler upped their target price on shares of AppLovin from $500.00 to $740.00 and gave the stock an "overweight" rating in a report on Friday, September 26th. Finally, Wells Fargo & Company upped their target price on shares of AppLovin from $480.00 to $491.00 and gave the stock an "overweight" rating in a report on Thursday, August 21st. Two research analysts have rated the stock with a Strong Buy rating, nineteen have given a Buy rating, three have issued a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat.com, AppLovin presently has a consensus rating of "Moderate Buy" and a consensus target price of $578.86.

AppLovin Price Performance

The firm's fifty day simple moving average is $494.89 and its 200 day simple moving average is $383.21. The firm has a market cap of $238.16 billion, a P/E ratio of 100.01, a P/E/G ratio of 3.93 and a beta of 2.44. The company has a debt-to-equity ratio of 3.01, a quick ratio of 2.74 and a current ratio of 2.74.

AppLovin (NASDAQ:APP - Get Free Report) last announced its quarterly earnings results on Wednesday, August 6th. The company reported $2.26 EPS for the quarter, beating analysts' consensus estimates of $2.05 by $0.21. AppLovin had a net margin of 45.72% and a return on equity of 252.67%. The firm had revenue of $1.26 billion during the quarter, compared to the consensus estimate of $1.37 billion. During the same quarter last year, the firm earned $0.89 EPS. The firm's revenue for the quarter was up 77.1% compared to the same quarter last year. As a group, analysts forecast that AppLovin Corporation will post 6.87 earnings per share for the current year.

Insider Transactions at AppLovin

In related news, CTO Vasily Shikin sold 30,000 shares of the stock in a transaction dated Friday, August 22nd. The shares were sold at an average price of $437.57, for a total value of $13,127,100.00. Following the completion of the transaction, the chief technology officer owned 3,360,104 shares of the company's stock, valued at approximately $1,470,280,707.28. This trade represents a 0.88% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, Director Eduardo Vivas sold 125,000 shares of the stock in a transaction dated Tuesday, August 12th. The shares were sold at an average price of $466.00, for a total transaction of $58,250,000.00. Following the completion of the transaction, the director directly owned 7,283,292 shares of the company's stock, valued at approximately $3,394,014,072. The trade was a 1.69% decrease in their position. The disclosure for this sale can be found here. Insiders have sold 1,156,788 shares of company stock worth $514,863,333 in the last quarter. Company insiders own 13.66% of the company's stock.

Institutional Trading of AppLovin

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the company. Vanguard Group Inc. raised its position in AppLovin by 0.4% in the 2nd quarter. Vanguard Group Inc. now owns 17,902,795 shares of the company's stock worth $6,267,410,000 after purchasing an additional 72,120 shares during the period. Price T Rowe Associates Inc. MD raised its position in AppLovin by 36.7% in the 1st quarter. Price T Rowe Associates Inc. MD now owns 6,588,483 shares of the company's stock worth $1,745,752,000 after purchasing an additional 1,769,400 shares during the period. State Street Corp raised its position in AppLovin by 2.4% in the 2nd quarter. State Street Corp now owns 5,615,415 shares of the company's stock worth $1,965,844,000 after purchasing an additional 133,402 shares during the period. Baillie Gifford & Co. raised its position in AppLovin by 29.0% in the 1st quarter. Baillie Gifford & Co. now owns 5,270,355 shares of the company's stock worth $1,396,486,000 after purchasing an additional 1,185,859 shares during the period. Finally, Invesco Ltd. raised its position in AppLovin by 32.9% in the 1st quarter. Invesco Ltd. now owns 4,011,306 shares of the company's stock worth $1,062,876,000 after purchasing an additional 992,316 shares during the period. 41.85% of the stock is owned by hedge funds and other institutional investors.

AppLovin Company Profile

AppLovin Corporation engages in building a software-based platform for advertisers to enhance the marketing and monetization of their content in the United States and internationally. It operates through two segments, Software Platform and Apps. The company's software solutions include AppDiscovery, a marketing software solution, which matches advertiser demand with publisher supply through auctions; MAX, an in-app bidding software that optimizes the value of a publisher's advertising inventory by running a real-time competitive auction; Adjust, a measurement and analytics marketing platform that provides marketers with the visibility, insights, and tools needed to grow their apps from early stage to maturity; and Wurl, a connected TV platform, which distributes streaming video for content companies and provides advertising and publishing solutions through its AdPool, ContentDiscovery, and Global FAST Pass products.

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