AppLovin Corporation $APP Stock: United Asset Strategies Inc. Grows Stake

Key Points

• United Asset Strategies increased its AppLovin stake by 59.4% in the third quarter, bringing its holdings to 23,782 shares valued at approximately $6.9 million. Institutional investors collectively own 41.85% of the company.
• Analysts remain broadly positive, with a consensus “Moderate Buy” rating and average price target of $491.64, despite several firms lowering their targets. AppLovin’s shares opened at $254.91, close to the $252 one-year low and well below the $738.01 high.
• Upcoming earnings and legal concerns are key catalysts and risks. Investors will assess AI advertising momentum and profitability in the next quarterly report, while a securities class action alleges the company overstated improvements in its AI advertising models.

United Asset Strategies Inc. increased its position in shares of AppLovin Corporation (NASDAQ:APP - Free Report) by 59.4% during the 3rd quarter, according to its most recent Form 13F filing with the Securities & Exchange Commission. The firm owned 23,782 shares of the company's stock after acquiring an additional 8,859 shares during the quarter. United Asset Strategies Inc.'s holdings in AppLovin were worth $6,907,000 at the end of the most recent quarter.

Several other large investors have also made changes to their positions in the company. Revolve Wealth Partners LLC boosted its holdings in AppLovin by 2.8% in the second quarter. Revolve Wealth Partners LLC now owns 851 shares of the company's stock valued at $438,000 after acquiring an additional 23 shares during the last quarter. IMA Advisory Services Inc. raised its holdings in AppLovin by 40.0% during the 1st quarter. IMA Advisory Services Inc. now owns 84 shares of the company's stock worth $33,000 after purchasing an additional 24 shares during the last quarter. PFG Investments LLC raised its holdings in AppLovin by 4.1% during the 1st quarter. PFG Investments LLC now owns 706 shares of the company's stock worth $281,000 after purchasing an additional 28 shares during the last quarter. Sovran Advisors LLC raised its holdings in AppLovin by 5.7% during the 1st quarter. Sovran Advisors LLC now owns 517 shares of the company's stock worth $206,000 after purchasing an additional 28 shares during the last quarter. Finally, PCB Capital LLC lifted its position in AppLovin by 1.3% during the 1st quarter. PCB Capital LLC now owns 2,261 shares of the company's stock valued at $900,000 after purchasing an additional 30 shares during the period. Institutional investors and hedge funds own 41.85% of the company's stock.

Analyst Upgrades and Downgrades

APP has been the topic of several recent research reports. Jefferies Financial Group reduced their target price on shares of AppLovin from $550.00 to $375.00 and set a "buy" rating on the stock in a research note on Thursday, October 8th. Deutsche Bank Aktiengesellschaft dropped their price target on shares of AppLovin from $660.00 to $580.00 and set a "buy" rating for the company in a research note on Thursday, August 6th. Loop Capital cut their price objective on shares of AppLovin from $860.00 to $600.00 and set a "buy" rating on the stock in a report on Thursday, August 20th. Piper Sandler reaffirmed a "neutral" rating on shares of AppLovin in a research note on Friday, October 2nd. Finally, Wedbush lowered their target price on shares of AppLovin from $610.00 to $560.00 and set an "outperform" rating for the company in a report on Wednesday, October 14th. Three equities research analysts have rated the stock with a Strong Buy rating, seventeen have given a Buy rating and eight have issued a Hold rating to the company's stock. Based on data from MarketBeat, the company presently has a consensus rating of "Moderate Buy" and an average price target of $491.64.

Key Stories Impacting AppLovin

Here are the key news stories impacting AppLovin this week:

• Positive Sentiment: Analyst optimism remains a potential support. AppLovin’s average brokerage recommendation is equivalent to a Buy. RBC Capital maintained an Outperform rating and set a $500 price target, implying substantial potential upside from recent levels, although it reduced its previous $575 target. Is AppLovin APP a Buy as Wall Street Analysts Look Optimistic? RBC Cut Its AppLovin Target to $500
• Positive Sentiment: High margins and new advertising products offer longer-term upside. AppLovin’s AI-powered advertising platform has produced an adjusted EBITDA margin of about 84%. Its Wurl subsidiary also launched a Content Intelligence Platform designed to improve transparency and measurement in connected-TV advertising, potentially expanding AppLovin’s advertising opportunity. Can AppLovin's 84% EBITDA Margin Sustain APP Stock's Growth?
• Neutral Sentiment: Third-quarter earnings are the next major catalyst. AppLovin is scheduled to report third-quarter results on November 4. Investors will focus on AI advertising momentum, profitability, the e-commerce initiative, and whether the company can meet expectations; one analysis said current indicators do not strongly support a likely earnings beat. Is AppLovin Undervalued Ahead of Third Quarter Earnings?
• Negative Sentiment: Multiple law firms publicized a securities class action against AppLovin. The lawsuit alleges the company overstated the reliability of improvements in its AI advertising models and the readiness of its generative-AI video tool. The repeated notices and November 16 lead-plaintiff deadline add reputational, legal, and potential financial uncertainty. APP Deadline Securities Class Action Notice
• Negative Sentiment: Investors are questioning the durability of AppLovin’s growth. Reports describe the stock as being in a “stealth” bear market, with concerns that model gains may be slowing, competition and costs could pressure margins, and recent results included revenue below expectations. These concerns are weighing on sentiment ahead of earnings. These 3 Crypto Stocks Now Sit on Tech’s Stealth Bear Market List

AppLovin Trading Down 1.9%

NASDAQ APP opened at $254.91 on Friday. The firm has a market cap of $85.31 billion, a P/E ratio of 19.59, a P/E/G ratio of 0.54 and a beta of 2.56. The company has a debt-to-equity ratio of 1.11, a current ratio of 4.30 and a quick ratio of 4.30. The stock's 50-day moving average is $295.80 and its 200-day moving average is $419.73. AppLovin Corporation has a one year low of $252.00 and a one year high of $738.01.

AppLovin (NASDAQ:APP - Get Free Report) last announced its quarterly earnings results on Wednesday, August 5th. The company reported $3.76 earnings per share for the quarter, meeting analysts' consensus estimates of $3.76. The firm had revenue of $1.92 billion for the quarter, compared to analyst estimates of $1.94 billion. AppLovin had a net margin of 64.58% and a return on equity of 193.10%. The business's revenue was up 52.8% on a year-over-year basis. During the same quarter in the previous year, the firm posted $2.39 earnings per share. Sell-side analysts anticipate that AppLovin Corporation will post 15.67 earnings per share for the current fiscal year.

AppLovin Profile

AppLovin Corporation is a technology company that provides software and services designed to help mobile application developers grow, monetize and operate their businesses. Its platform supports user acquisition, advertising, mediation, analytics and other functions across the mobile app ecosystem.

The company's principal products include AppDiscovery, which helps developers market their applications and acquire users; MAX, an in-app bidding and monetization platform; and its AXON technology, an artificial intelligence-powered engine intended to improve advertising performance and match users with relevant applications and content.

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