AppLovin (NASDAQ:APP) Shares Climb 9.9% on Analyst Upgrade

Key Points

• AppLovin shares rose 9.9% to $391.22 after Wells Fargo raised its price target from $325 to $347, while keeping an equal-weight rating; trading volume was about 104% above average.
• The company reported quarterly revenue of $2.18 billion, up 55.5% year over year, and earnings of $4.30 per share, beating analyst estimates on both measures.
• Analyst sentiment overall remained positive: MarketBeat reported an average “Moderate Buy” rating and a consensus price target of $497.93, though Wells Fargo’s new target was below the share price.

AppLovin Corporation (NASDAQ:APP - Get Free Report) shares were up 9.9% on Friday after Wells Fargo & Company raised their price target on the stock from $325.00 to $347.00. Wells Fargo & Company currently has an equal weight rating on the stock. AppLovin traded as high as $398.00 and last traded at $391.22. Approximately 11,480,721 shares were traded during trading, an increase of 104% from the average daily volume of 5,615,114 shares. The stock had previously closed at $356.10.

A number of other equities analysts have also issued reports on the company. Phillip Securities upgraded AppLovin from a "moderate buy" rating to a "strong-buy" rating and reduced their target price for the stock from $635.00 to $610.00 in a research note on Tuesday, August 11th. HSBC dropped their price target on AppLovin from $450.00 to $409.00 and set a "buy" rating on the stock in a research note on Monday, October 5th. Morgan Stanley cut their price objective on AppLovin from $450.00 to $400.00 and set an "overweight" rating on the stock in a report on Tuesday, October 13th. UBS Group cut their price objective on AppLovin from $790.00 to $414.00 and set a "buy" rating on the stock in a report on Wednesday, October 28th. Finally, Benchmark reduced their price objective on AppLovin from $500.00 to $440.00 and set a "buy" rating for the company in a research note on Monday, August 17th. Three analysts have rated the stock with a Strong Buy rating, seventeen have assigned a Buy rating and eight have issued a Hold rating to the company. Based on data from MarketBeat, the company has an average rating of "Moderate Buy" and an average target price of $497.93.

Key AppLovin News

Here are the key news stories impacting AppLovin this week:

• Positive Sentiment: AppLovin reported Q3 revenue of $2.18 billion, up 55.5% year over year, and EPS of $4.30, beating analyst expectations. Net income rose 72% to about $1.44 billion. AppLovin Stock What Changed After Its Earnings Beat
• Positive Sentiment: Management’s Q4 revenue forecast of $2.365 billion–$2.395 billion topped expectations, reinforcing optimism that AI-powered advertising growth can continue as the company rolls out its models. AppLovin earnings show AI advertising is still in early innings
• Positive Sentiment: AppLovin expanded its share-repurchase authorization to $3.6 billion, a signal of confidence in cash generation. RBC and Oppenheimer also raised their price targets to $520 and maintained positive ratings. Analysts rethink AppLovin stock price targets after earnings
• Neutral Sentiment: Wells Fargo raised its target to $347 but kept an “equal weight” rating; the target remains below the share price cited in the report, reflecting more cautious views on valuation. Wells Fargo recommendations
• Negative Sentiment: Several law firms publicized a securities class action covering investors who bought shares from February 12 through August 5, 2026. The suit alleges misleading statements about the readiness and adoption of AppLovin’s AI models and self-service ad tools; these are allegations, but the litigation could create legal and reputational risk. AppLovin facing securities fraud class action

Institutional Trading of AppLovin

Several hedge funds and other institutional investors have recently bought and sold shares of APP. State Street Corp lifted its position in AppLovin by 28.3% during the second quarter. State Street Corp now owns 15,095,667 shares of the company's stock worth $7,777,741,000 after buying an additional 3,328,338 shares in the last quarter. WCM Investment Management LLC grew its holdings in AppLovin by 5.2% in the 1st quarter. WCM Investment Management LLC now owns 5,001,600 shares of the company's stock valued at $1,860,995,000 after buying an additional 245,290 shares in the last quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC grew its holdings in AppLovin by 7.5% in the 2nd quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 1,735,471 shares of the company's stock valued at $894,167,000 after buying an additional 121,605 shares in the last quarter. Bank of New York Mellon Corp purchased a new stake in AppLovin in the 2nd quarter valued at $730,015,000. Finally, Amundi increased its stake in shares of AppLovin by 19.5% in the 2nd quarter. Amundi now owns 1,332,633 shares of the company's stock worth $686,612,000 after acquiring an additional 217,214 shares during the last quarter. 41.85% of the stock is owned by institutional investors and hedge funds.

AppLovin Stock Up 9.9%

The firm has a market capitalization of $130.92 billion, a price-to-earnings ratio of 26.33, a P/E/G ratio of 0.60 and a beta of 2.51. The business has a 50 day simple moving average of $291.78 and a 200-day simple moving average of $410.78. The company has a debt-to-equity ratio of 1.11, a quick ratio of 4.30 and a current ratio of 4.30.

AppLovin (NASDAQ:APP - Get Free Report) last posted its quarterly earnings results on Wednesday, November 4th. The company reported $4.30 EPS for the quarter, topping the consensus estimate of $4.03 by $0.27. AppLovin had a return on equity of 196.31% and a net margin of 65.89%. The business had revenue of $2.18 billion for the quarter, compared to analyst estimates of $2.07 billion. During the same quarter in the previous year, the firm earned $2.45 EPS. The company's quarterly revenue was up 55.5% compared to the same quarter last year. On average, equities analysts expect that AppLovin Corporation will post 15.61 EPS for the current year.

About AppLovin

AppLovin is a technology company that provides software to help mobile app developers and advertisers grow their businesses. Its platform connects advertisers seeking users with app publishers looking to monetize their audiences, using data and machine-learning tools to support advertising and user acquisition.

The company's products include AXON, its advertising optimization engine; AppDiscovery, which helps advertisers find and acquire users; and MAX, a platform for managing in-app advertising.

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