AppLovin Corporation (NASDAQ:APP) Receives Average Rating of "Moderate Buy" from Brokerages

Key Points

• Analysts maintain a moderately bullish view: Twenty-four analysts give AppLovin a consensus “Moderate Buy” rating, with 13 buys, eight holds and three strong buys. The average 12-month price target is $529.39, though several firms recently lowered their targets.
• Shares remain well below recent highs: AppLovin opened at $281.97, compared with a 12-month range of $266.84 to $738.01, despite rising 5.1% in the reported session. Its latest quarterly revenue increased 52.8% year over year to $1.92 billion, but fell slightly short of analyst expectations.
• Legal and reputational risks are increasing: The company faces reported securities-fraud litigation tied to alleged AI-progress issues and its August results, as well as a San Diego lawsuit concerning inappropriate advertisements allegedly shown on children’s devices.

AppLovin Corporation (NASDAQ:APP - Get Free Report) has earned a consensus rating of "Moderate Buy" from the twenty-four analysts that are presently covering the stock, MarketBeat reports. Eight investment analysts have rated the stock with a hold recommendation, thirteen have given a buy recommendation and three have given a strong buy recommendation to the company. The average twelve-month target price among brokerages that have updated their coverage on the stock in the last year is $529.39.

APP has been the topic of a number of analyst reports. Wedbush lowered their target price on shares of AppLovin from $640.00 to $610.00 and set an "outperform" rating on the stock in a research note on Thursday, August 6th. Morgan Stanley dropped their price objective on shares of AppLovin from $650.00 to $450.00 and set an "overweight" rating for the company in a research report on Monday, September 14th. Benchmark lowered their target price on shares of AppLovin from $500.00 to $440.00 and set a "buy" rating for the company in a report on Monday, August 17th. Evercore reiterated an "outperform" rating and issued a $510.00 price target on shares of AppLovin in a research report on Tuesday, September 1st. Finally, Royal Bank Of Canada dropped their price objective on AppLovin from $700.00 to $575.00 and set an "outperform" rating on the stock in a research note on Thursday, August 6th.

AppLovin Trading Up 5.1%

AppLovin stock opened at $281.97 on Tuesday. The business has a 50 day moving average price of $326.67 and a two-hundred day moving average price of $420.92. The company has a quick ratio of 4.30, a current ratio of 4.30 and a debt-to-equity ratio of 1.11. The stock has a market cap of $94.36 billion, a price-to-earnings ratio of 21.67, a price-to-earnings-growth ratio of 0.56 and a beta of 2.56. AppLovin has a 12 month low of $266.84 and a 12 month high of $738.01.

AppLovin (NASDAQ:APP - Get Free Report) last announced its quarterly earnings data on Wednesday, August 5th. The company reported $3.76 earnings per share for the quarter, hitting the consensus estimate of $3.76. The company had revenue of $1.92 billion for the quarter, compared to analyst estimates of $1.94 billion. AppLovin had a return on equity of 193.10% and a net margin of 64.58%.AppLovin's revenue for the quarter was up 52.8% compared to the same quarter last year. During the same quarter last year, the firm earned $2.39 EPS. As a group, equities analysts forecast that AppLovin will post 15.72 EPS for the current year.

Key AppLovin News

Here are the key news stories impacting AppLovin this week:

• Positive Sentiment: Technical rebound: AppLovin rose after nine consecutive losing sessions, providing some relief following a nearly 19% decline over roughly two weeks. The broader ad-tech sector was mixed, with AppLovin among the strongest performers in the group. AppLovin Stock is Soaring 6.5% — Will It Break a 9-Day Losing Streak?
• Neutral Sentiment: Investors reassessing the business: Commentary highlights three unresolved issues behind the recent selloff, while another report asks whether buying previous dips has been effective. AppLovin’s latest quarterly results showed strong year-over-year revenue growth, but revenue came in slightly below expectations, keeping the focus on whether its rapid growth and artificial-intelligence-related progress can continue. Has Buying AppLovin Stock's Dips Paid Off?
• Negative Sentiment: Multiple securities-fraud notices: Several law firms are promoting a class action covering investors who purchased AppLovin securities from February 12 through August 5, 2026. The lawsuit reportedly relates to an analyst report, alleged artificial-intelligence progress issues and the company’s August 5 results, which were associated with sharp share-price declines. The lead-plaintiff deadline is November 16, 2026. These are allegations, and the litigation could create financial, reputational and management-distraction risks. AppLovin Securities-Fraud Class Action Notice
• Negative Sentiment: Child-safety lawsuit: San Diego reportedly sued AppLovin over allegations that inappropriate advertisements were displayed on children’s devices. The case increases regulatory and reputational risk for the company’s advertising business and could intensify scrutiny of its ad-targeting controls. San Diego Sues AppLovin Over Explicit Ads Shown to Kids’ Devices
• Negative Sentiment: Continued analyst skepticism: Jim Cramer remains cautious despite AppLovin’s roughly 44% decline, while a separate analysis downgraded the stock to “sell,” limiting confidence that the recent rebound represents a durable bottom. AppLovin: I Was Wrong, This Is a Sell

Institutional Investors Weigh In On AppLovin

Institutional investors have recently added to or reduced their stakes in the stock. Cassaday & Co Wealth Management LLC bought a new position in AppLovin during the 1st quarter worth about $25,000. Pioneer Family Office LLC bought a new stake in shares of AppLovin in the second quarter valued at about $31,000. First Pacific Financial acquired a new position in shares of AppLovin during the first quarter worth about $33,000. IMA Advisory Services Inc. grew its holdings in shares of AppLovin by 40.0% during the first quarter. IMA Advisory Services Inc. now owns 84 shares of the company's stock worth $33,000 after buying an additional 24 shares in the last quarter. Finally, CENTRAL TRUST Co grew its holdings in shares of AppLovin by 41.3% during the first quarter. CENTRAL TRUST Co now owns 89 shares of the company's stock worth $35,000 after buying an additional 26 shares in the last quarter. 41.85% of the stock is owned by institutional investors.

AppLovin Company Profile

AppLovin Corporation is a technology company that provides software and services designed to help mobile application developers grow, monetize and analyze their businesses. Its platform supports user acquisition, advertising, in-app monetization and performance measurement for mobile apps.

The company's products include MAX, a software platform that helps developers manage in-app advertising and maximize advertising revenue, as well as AppDiscovery, which supports app marketing and user acquisition.

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.