AppLovin (NASDAQ:APP) Stock Price Down 14% - What's Next?

Key Points

• AppLovin's stock price dropped 14% to $587.00, marking a significant decline from its previous close of $682.76, with trading volume up 81% from the average.
• Analysts have mixed views on the stock, with price target upgrades from firms like Bank of America to $860.00, while others downgraded it to "hold", leading to a consensus rating of "Moderate Buy".
• Despite a decline in stock price, AppLovin reported strong quarterly earnings, with a net margin of 45.72% and revenue growth of 77.1% year-over-year, though it fell short of revenue estimates.

AppLovin Corporation (NASDAQ:APP - Get Free Report) shares traded down 14% on Monday . The company traded as low as $545.00 and last traded at $587.00. 13,506,992 shares were traded during mid-day trading, an increase of 81% from the average session volume of 7,467,866 shares. The stock had previously closed at $682.76.

Analyst Upgrades and Downgrades

APP has been the topic of a number of analyst reports. Piper Sandler boosted their price target on AppLovin from $500.00 to $740.00 and gave the stock an "overweight" rating in a research report on Friday, September 26th. Phillip Securities raised AppLovin to a "moderate buy" rating in a report on Monday, September 29th. Bank of America increased their target price on AppLovin from $580.00 to $860.00 and gave the stock a "buy" rating in a research note on Wednesday, October 1st. Wall Street Zen downgraded AppLovin from a "buy" rating to a "hold" rating in a report on Saturday, August 9th. Finally, Weiss Ratings reiterated a "buy (b-)" rating on shares of AppLovin in a research note on Saturday, September 27th. Two equities research analysts have rated the stock with a Strong Buy rating, twenty have assigned a Buy rating, three have given a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat.com, AppLovin has an average rating of "Moderate Buy" and a consensus price target of $579.81.

AppLovin Price Performance

The stock has a market capitalization of $198.55 billion, a PE ratio of 83.38, a PEG ratio of 3.74 and a beta of 2.53. The firm's fifty day moving average price is $518.90 and its two-hundred day moving average price is $393.96. The company has a quick ratio of 2.74, a current ratio of 2.74 and a debt-to-equity ratio of 3.01.

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

Insiders Place Their Bets

In other AppLovin news, CTO Vasily Shikin sold 30,000 shares of the business's stock in a transaction dated Friday, August 22nd. The stock was sold at an average price of $437.57, for a total transaction of $13,127,100.00. Following the completion of the sale, the chief technology officer directly owned 3,360,104 shares in the company, valued at $1,470,280,707.28. The trade was a 0.88% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, Director Eduardo Vivas sold 125,000 shares of the stock in a transaction that occurred on Tuesday, August 12th. The stock was 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 owned 7,283,292 shares in the company, valued at $3,394,014,072. This trade represents a 1.69% decrease in their position. The disclosure for this sale can be found here. In the last three months, insiders sold 1,156,788 shares of company stock valued at $514,863,333. 13.66% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On AppLovin

Several large investors have recently added to or reduced their stakes in APP. Atala Financial Inc bought a new stake in shares of AppLovin during the 1st quarter valued at $26,000. Hilltop National Bank purchased a new stake in AppLovin in the 2nd quarter worth $26,000. LFA Lugano Financial Advisors SA bought a new stake in AppLovin during the second quarter valued at about $26,000. Alpine Bank Wealth Management purchased a new position in shares of AppLovin in the first quarter valued at about $27,000. Finally, ORG Wealth Partners LLC purchased a new position in shares of AppLovin in the first quarter valued at about $29,000. Hedge funds and other institutional investors own 41.85% of the company's stock.

About AppLovin

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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