AppLovin (NASDAQ:APP) Rating Increased to Strong-Buy at Wedbush

AppLovin (NASDAQ:APP - Get Free Report) was upgraded by equities researchers at Wedbush to a "strong-buy" rating in a research report issued to clients and investors on Tuesday,Zacks.com reports. Wedbush also issued estimates for AppLovin's Q3 2025 earnings at $2.16 EPS, Q4 2025 earnings at $2.30 EPS, Q1 2026 earnings at $2.41 EPS, Q2 2026 earnings at $2.54 EPS, Q3 2026 earnings at $2.67 EPS, Q4 2026 earnings at $2.84 EPS, FY2026 earnings at $10.47 EPS, Q1 2027 earnings at $2.98 EPS, Q2 2027 earnings at $3.13 EPS and FY2027 earnings at $12.81 EPS.

Other research analysts also recently issued research reports about the stock. Wells Fargo & Company upped their price target on shares of AppLovin from $386.00 to $405.00 and gave the stock an "overweight" rating in a research report on Thursday, May 8th. Arete Research set a $200.00 price target on shares of AppLovin in a research report on Wednesday, March 5th. Piper Sandler restated an "overweight" rating and set a $470.00 price target (up previously from $455.00) on shares of AppLovin in a research report on Thursday, June 26th. The Goldman Sachs Group upped their price target on shares of AppLovin from $335.00 to $435.00 and gave the stock a "neutral" rating in a research report on Friday, May 9th. Finally, Benchmark restated a "buy" rating and set a $525.00 price target on shares of AppLovin in a research report on Thursday, May 8th. One analyst has rated the stock with a sell rating, three have issued a hold rating, sixteen have assigned a buy rating and two have issued a strong buy rating to the stock. According to data from MarketBeat.com, the stock presently has an average rating of "Moderate Buy" and an average target price of $438.85.

AppLovin Trading Up 1.3%

NASDAQ:APP traded up $4.24 during mid-day trading on Tuesday, hitting $340.24. 3,525,836 shares of the stock traded hands, compared to its average volume of 6,220,592. The stock has a market capitalization of $115.13 billion, a price-to-earnings ratio of 61.42, a PEG ratio of 2.04 and a beta of 2.42. AppLovin has a 52 week low of $60.67 and a 52 week high of $525.15. The firm's 50 day moving average is $352.35 and its two-hundred day moving average is $333.89. The company has a quick ratio of 1.68, a current ratio of 1.68 and a debt-to-equity ratio of 6.10.

AppLovin (NASDAQ:APP - Get Free Report) last released its quarterly earnings data on Wednesday, May 7th. The company reported $1.67 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.45 by $0.22. AppLovin had a net margin of 37.38% and a return on equity of 224.65%. The company had revenue of $1.48 billion during the quarter, compared to analysts' expectations of $1.38 billion. During the same period in the previous year, the company earned $0.67 EPS. The firm's quarterly revenue was up 40.3% on a year-over-year basis. On average, equities research analysts predict that AppLovin will post 6.87 earnings per share for the current year.

Insiders Place Their Bets

In other news, Director Herald Y. Chen sold 100,000 shares of the stock in a transaction that occurred on Friday, June 6th. The shares were sold at an average price of $419.91, for a total value of $41,991,000.00. Following the completion of the sale, the director owned 181,929 shares of the company's stock, valued at $76,393,806.39. This represents a 35.47% decrease in their position. The transaction was disclosed in a filing with the SEC, which is available at this hyperlink. Also, Director Dawson Alyssa Harvey sold 513 shares of the stock in a transaction that occurred on Friday, June 6th. The shares were sold at an average price of $420.30, for a total transaction of $215,613.90. Following the completion of the sale, the director directly owned 3,451 shares of the company's stock, valued at approximately $1,450,455.30. This trade represents a 12.94% decrease in their position. The disclosure for this sale can be found here. Over the last 90 days, insiders have sold 1,212,968 shares of company stock worth $455,062,980. 13.66% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On AppLovin

A number of hedge funds have recently made changes to their positions in the stock. Vanguard Group Inc. boosted its position in shares of AppLovin by 7.3% during the 1st quarter. Vanguard Group Inc. now owns 17,830,675 shares of the company's stock worth $4,724,594,000 after purchasing an additional 1,213,536 shares during the period. FMR LLC boosted its position in shares of AppLovin by 75.5% during the 4th quarter. FMR LLC now owns 13,851,122 shares of the company's stock worth $4,485,409,000 after purchasing an additional 5,957,885 shares during the period. Price T Rowe Associates Inc. MD boosted its position in shares of AppLovin by 36.7% during 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. Baillie Gifford & Co. boosted its position in shares of AppLovin by 29.0% during 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, Geode Capital Management LLC boosted its position in shares of AppLovin by 14.5% during the 4th quarter. Geode Capital Management LLC now owns 4,519,445 shares of the company's stock worth $1,462,144,000 after purchasing an additional 573,310 shares during the period. Hedge funds and other institutional investors own 41.85% of the company's stock.

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.