AppLovin (NASDAQ:APP) Stock Price Up 2.9% - Time to Buy?

Key Points

• AppLovin shares rose 2.9% to $312.67 on increased trading volume, but remain well below their 50-day and 200-day moving averages near $458.
• The company’s third-quarter outlook signals renewed sequential revenue growth while maintaining an approximately 83% margin, following second-quarter revenue of $1.92 billion, up 52.8% year over year.
• Analysts remain broadly bullish, with a consensus “Moderate Buy” rating and a $565.91 price target, although several firms recently reduced their targets. Meanwhile, insiders sold about $197.3 million in shares over the past 90 days.

AppLovin Corporation (NASDAQ:APP - Get Free Report)'s share price traded up 2.9% on Thursday . The stock traded as high as $317.60 and last traded at $312.67. Approximately 7,485,564 shares changed hands during mid-day trading, an increase of 29% from the average session volume of 5,787,051 shares. The stock had previously closed at $303.76.

AppLovin News Roundup

Here are the key news stories impacting AppLovin this week:

• Positive Sentiment: AppLovin’s third-quarter outlook points to sequential revenue-growth reacceleration while maintaining an approximately 83% margin, even as the company continues investing in AI-computing capacity. AppLovin Q3 Guidance Signals Reacceleration After a Mixed Q2 Print
• Positive Sentiment: Some analysts continue to view the decline as excessive relative to AppLovin’s fundamentals. BTIG retained a Buy rating, while Phillip Securities upgraded the stock to Strong Buy; bullish commentary highlights rapid revenue and profit growth and substantial upside to consensus targets. BTIG AppLovin Price Target
• Positive Sentiment: The company is promoting its advertising platform as a credible alternative for marketers, which could help strengthen adoption and support future growth if execution validates the pitch. AppLovin Wants To Persuade The World That Its Ad Platform Is The Real Deal

Analysts Set New Price Targets

APP has been the topic of several analyst reports. Deutsche Bank Aktiengesellschaft reaffirmed a "buy" rating and set a $660.00 price target on shares of AppLovin in a research report on Thursday, May 7th. Phillip Securities raised AppLovin from a "moderate buy" rating to a "strong-buy" rating in a research note on Tuesday. Weiss Ratings upgraded AppLovin from a "hold (c)" rating to a "hold (c+)" rating in a research report on Thursday, August 6th. Needham & Company LLC decreased their price target on AppLovin from $700.00 to $500.00 and set a "buy" rating on the stock in a research note on Thursday, August 6th. Finally, UBS Group lowered their price target on AppLovin from $798.00 to $790.00 and set a "buy" rating for the company in a report on Thursday, August 6th. Three analysts have rated the stock with a Strong Buy rating, thirteen have assigned a Buy rating and eight have given a Hold rating to the stock. According to data from MarketBeat, the company currently has a consensus rating of "Moderate Buy" and a consensus target price of $565.91.

AppLovin Price Performance

The stock has a market cap of $105.04 billion, a price-to-earnings ratio of 24.03, a P/E/G ratio of 0.59 and a beta of 2.54. The company has a current ratio of 4.30, a quick ratio of 4.30 and a debt-to-equity ratio of 1.11. The company's fifty day moving average is $457.60 and its two-hundred day moving average is $458.54.

AppLovin (NASDAQ:APP - Get Free Report) last released its quarterly earnings results on Tuesday, August 4th. The company reported $3.76 EPS for the quarter, hitting analysts' consensus estimates of $3.76. AppLovin had a return on equity of 193.10% and a net margin of 64.58%.The company had revenue of $1.92 billion for the quarter, compared to analysts' expectations of $1.94 billion. During the same period in the prior year, the firm earned $2.39 earnings per share. The firm's revenue was up 52.8% compared to the same quarter last year. As a group, research analysts predict that AppLovin Corporation will post 15.57 earnings per share for the current year.

Insider Activity at AppLovin

In other AppLovin news, CEO Arash Adam Foroughi sold 33,042 shares of AppLovin stock in a transaction dated Thursday, June 11th. The stock was sold at an average price of $486.95, for a total value of $16,089,801.90. Following the completion of the transaction, the chief executive officer directly owned 2,369,351 shares of the company's stock, valued at $1,153,755,469.45. The trade was a 1.38% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available through this link. Also, CFO Matthew Stumpf sold 9,052 shares of the business's stock in a transaction dated Thursday, May 28th. The stock was sold at an average price of $600.00, for a total transaction of $5,431,200.00. Following the sale, the chief financial officer owned 177,450 shares in the company, valued at $106,470,000. This trade represents a 4.85% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders sold a total of 393,000 shares of company stock worth $197,297,363 over the last ninety days. Company insiders own 12.81% of the company's stock.

Institutional Investors Weigh In On AppLovin

A number of hedge funds have recently added to or reduced their stakes in APP. C M Bidwell & Associates Ltd. acquired a new stake in AppLovin during the 2nd quarter worth approximately $483,000. Abacus FCF Advisors LLC acquired a new position in shares of AppLovin in the second quarter worth $9,706,000. Great Lakes Advisors LLC purchased a new stake in shares of AppLovin during the second quarter worth $2,091,000. Commerzbank Aktiengesellschaft FI purchased a new stake in shares of AppLovin during the second quarter worth $1,148,000. Finally, Plato Investment Management Ltd acquired a new stake in shares of AppLovin in the second quarter valued at $2,544,000. 41.85% of the stock is currently owned by institutional investors and hedge funds.

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.

Continue following MarketBeat

Add MarketBeat as your preferred source on Google to see our latest stories in your feed.

Add As Preferred Source