Swiss Life Asset Management Ltd Increases Position in AppLovin Corporation $APP

Key Points

• Swiss Life Asset Management increased its AppLovin stake by 29.6% in the second quarter, ending the period with 104,608 shares valued at approximately $53.9 million. Several other major institutions also raised their positions, while institutional investors collectively own 41.85% of the company.
• AppLovin’s latest quarter showed strong growth, with revenue rising 52.8% year over year to $1.92 billion and EPS of $3.76, though revenue and adjusted EBITDA fell slightly short of expectations. Analysts remain divided, citing the company’s profitability against concerns over competition and the durability of mobile-gaming advertising growth.
• The stock opened at $315.44, well below its 12-month high of $745.61. Despite recent target-price cuts and insider sales totaling about $197.3 million over 90 days, analysts maintain a consensus “Moderate Buy” rating with an average target price of $565.91.

Swiss Life Asset Management Ltd increased its position in shares of AppLovin Corporation (NASDAQ:APP - Free Report) by 29.6% during the 2nd quarter, according to its most recent 13F filing with the Securities and Exchange Commission (SEC). The firm owned 104,608 shares of the company's stock after purchasing an additional 23,899 shares during the period. Swiss Life Asset Management Ltd's holdings in AppLovin were worth $53,897,000 at the end of the most recent reporting period.

A number of other large investors also recently modified their holdings of APP. State Street Corp boosted its holdings in AppLovin by 111.1% in the 3rd quarter. State Street Corp now owns 11,852,466 shares of the company's stock worth $8,516,471,000 after buying an additional 6,237,051 shares during the period. Corient Private Wealth LLC lifted its position in shares of AppLovin by 3,118.6% in the fourth quarter. Corient Private Wealth LLC now owns 4,194,071 shares of the company's stock valued at $2,826,049,000 after acquiring an additional 4,063,763 shares in the last quarter. Norges Bank purchased a new position in shares of AppLovin in the fourth quarter valued at about $2,040,321,000. Northern Trust Corp boosted its stake in shares of AppLovin by 46.8% in the third quarter. Northern Trust Corp now owns 2,374,460 shares of the company's stock worth $1,706,144,000 after acquiring an additional 756,660 shares during the period. Finally, Amundi boosted its stake in shares of AppLovin by 81.3% in the fourth quarter. Amundi now owns 1,426,896 shares of the company's stock worth $961,471,000 after acquiring an additional 639,836 shares during the period. Hedge funds and other institutional investors own 41.85% of the company's stock.

AppLovin News Summary

Here are the key news stories impacting AppLovin this week:

• Positive Sentiment: Some analysts remain constructive on AppLovin’s valuation and financial profile. Phillip Securities upgraded the stock, while a recent analysis argued that the shares may be mispriced relative to the company’s fundamentals after reaching a 52-week low. AppLovin Upgraded at Phillip Securities AppLovin at 52-Week Low
• Neutral Sentiment: JPMorgan initiated coverage with a Neutral rating, recognizing AppLovin’s strong profitability and balance-sheet profile while questioning whether its rapid mobile-gaming advertising growth can continue. Bank of America also rates the shares Neutral. JPMorgan Initiates AppLovin Coverage Bank of America Neutral Rating
• Negative Sentiment: AppLovin’s latest quarterly results fell slightly short of revenue expectations, and adjusted EBITDA also missed estimates. Management attributed the weakness to slower-than-usual improvements in its core gaming advertising models, intensifying concerns about earnings-growth durability. AppLovin Q2 Earnings Call
• Negative Sentiment: Competitive risks from Unity and Meta, as well as questions about whether Google could challenge AppLovin’s advertising position, are weighing on the investment narrative. BTIG issued a pessimistic forecast, and another analyst downgrade previously contributed to selling pressure. BTIG Forecast for AppLovin AppLovin and Google Competition
• Negative Sentiment: Quant fund Renaissance Technologies exited its AppLovin position, a potential additional overhang for sentiment even though the move reflects portfolio management rather than a fundamental company announcement. Renaissance Changes Holdings

AppLovin Price Performance

Shares of AppLovin stock opened at $315.44 on Friday. The stock has a 50 day moving average of $447.84 and a 200 day moving average of $456.06. AppLovin Corporation has a 12 month low of $303.17 and a 12 month high of $745.61. The firm has a market cap of $105.56 billion, a PE ratio of 24.25, a PEG ratio of 0.63 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.

AppLovin (NASDAQ:APP - Get Free Report) last released its quarterly earnings data on Tuesday, August 4th. The company reported $3.76 earnings per share (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 business had revenue of $1.92 billion for the quarter, compared to the consensus estimate of $1.94 billion. During the same quarter in the previous year, the company posted $2.39 EPS. The company's revenue was up 52.8% compared to the same quarter last year. On average, research analysts expect that AppLovin Corporation will post 15.57 EPS for the current fiscal year.

Analyst Ratings Changes

Several analysts recently issued reports on APP shares. The Goldman Sachs Group decreased their target price on AppLovin from $585.00 to $465.00 and set a "neutral" rating on the stock in a research note on Thursday, August 6th. Raymond James Financial initiated coverage on shares of AppLovin in a report on Monday, June 29th. They set a "strong-buy" rating and a $640.00 price objective for the company. UBS Group reduced their price objective on shares of AppLovin from $798.00 to $790.00 and set a "buy" rating on the stock in a research report on Thursday, August 6th. JPMorgan Chase & Co. boosted their target price on shares of AppLovin from $500.00 to $515.00 and gave the stock a "neutral" rating in a report on Thursday, May 7th. Finally, Needham & Company LLC dropped their target price on shares of AppLovin from $700.00 to $500.00 and set a "buy" rating for the company in a research report on Thursday, August 6th. Three investment analysts have rated the stock with a Strong Buy rating, thirteen have given a Buy rating and eight have given a Hold rating to the stock. Based on data from MarketBeat, the stock has an average rating of "Moderate Buy" and a consensus target price of $565.91.

Insider Activity

In related news, CTO Vasily Shikin sold 62,804 shares of the business's stock in a transaction on Friday, May 22nd. The shares were sold at an average price of $484.42, for a total value of $30,423,513.68. Following the sale, the chief technology officer owned 3,189,739 shares in the company, valued at approximately $1,545,173,366.38. The trade was a 1.93% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, CFO Matthew Stumpf sold 9,052 shares of the stock in a transaction on Thursday, May 28th. The shares were sold at an average price of $600.00, for a total transaction of $5,431,200.00. Following the transaction, the chief financial officer owned 177,450 shares of the company's stock, valued at $106,470,000. This trade represents a 4.85% decrease in their position. The SEC filing for this sale provides additional information. In the last ninety days, insiders sold 393,000 shares of company stock worth $197,297,363. 12.81% of the stock is owned by corporate insiders.

AppLovin Profile

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.

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