AppLovin (NASDAQ:APP) Shares Gap Up - Still a Buy?

Key Points

• AppLovin shares opened higher at $322.05 versus a prior close of $310.75, though they later traded near $313.49 as buyers returned after a prolonged decline.
• The company reported strong growth, with quarterly revenue up 52.8% year over year to $1.92 billion and EPS of $3.76, but revenue narrowly missed expectations. Analysts remain broadly positive, with a “Moderate Buy” consensus and an average price target of $529.39.
• Key risks include analyst target cuts, the stock’s substantial decline below its 50- and 200-day moving averages, and a securities class-action lawsuit alleging misstatements about its AI advertising technology and generative-AI tools.

AppLovin Corporation (NASDAQ:APP - Get Free Report) shares gapped up before the market opened on Monday. The stock had previously closed at $310.75, but opened at $322.05. AppLovin shares last traded at $313.4940, with a volume of 1,080,587 shares traded.

Key Stories Impacting AppLovin

Here are the key news stories impacting AppLovin this week:

• Positive Sentiment: Buyers are returning after the year-long decline, with AppLovin outperforming ad-tech peers such as The Trade Desk and Digital Turbine. The move suggests some investors view the stock’s decline as excessive and are positioning for a recovery. AppLovin Jumps 4% as Buyers Return After Year-Long Slide
• Positive Sentiment: Advertisers reportedly continue to increase budgets because of strong returns on ad spend through AppLovin’s platform. This supports the long-term growth case, though investors still need evidence that customer retention and unit economics remain durable. Is AppLovin Stock Actually Cheap?
• Neutral Sentiment: AppLovin’s second-quarter revenue grew 53% year over year to approximately $1.92 billion, but narrowly missed expectations. The miss contributed to analyst downgrades and remains a central reason the stock has materially underperformed. AppLovin Stock Is Down 50% This Year
• Negative Sentiment: Several law firms are publicizing a securities class action and a November 16, 2026 lead-plaintiff deadline. The lawsuit alleges AppLovin overstated the consistency of improvements in its AI advertising models and the readiness of its generative-AI video creative tool. The allegations are unproven, but the litigation creates reputational, financial, and investor-confidence risks. Levi & Korsinsky AppLovin Securities Class Action Deadline

Analysts Set New Price Targets

A number of analysts have recently weighed in on the company. Scotiabank reissued a "sector outperform" rating and set a $515.00 price objective on shares of AppLovin in a research note on Thursday, August 6th. Wedbush decreased 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. Wells Fargo & Company lowered their price target on shares of AppLovin from $357.00 to $325.00 and set an "equal weight" rating for the company in a report on Wednesday, August 19th. Morgan Stanley dropped their price target 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. Finally, William Blair set a $440.00 price target on shares of AppLovin in a report on Monday, August 17th. 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 company. According to data from MarketBeat, AppLovin presently has a consensus rating of "Moderate Buy" and a consensus target price of $529.39.

AppLovin Stock Performance

The company's 50-day moving average price is $341.34 and its 200 day moving average price is $428.13. The stock has a market capitalization of $103.30 billion, a PE ratio of 23.72, a PEG ratio of 0.65 and a beta of 2.49. 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 announced its quarterly earnings results on Wednesday, August 5th. The company reported $3.76 earnings per share (EPS) for the quarter, meeting the consensus estimate of $3.76. AppLovin had a net margin of 64.58% and a return on equity of 193.10%. The company had revenue of $1.92 billion for the quarter, compared to analysts' expectations of $1.94 billion. During the same quarter in the previous year, the company earned $2.39 earnings per share. AppLovin's quarterly revenue was up 52.8% on a year-over-year basis. On average, equities research analysts expect that AppLovin Corporation will post 15.76 earnings per share for the current fiscal year.

Insiders Place Their Bets

In other AppLovin news, Director G Jr sold 3,076 shares of the company's stock in a transaction that occurred on Monday, July 6th. The stock was sold at an average price of $521.29, for a total transaction of $1,603,488.04. Following the transaction, the director owned 120,444 shares in the company, valued at approximately $62,786,252.76. This represents a 2.49% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Insiders own 12.81% of the company's stock.

Institutional Inflows and Outflows

Several institutional investors have recently made changes to their positions in APP. Revolve Wealth Partners LLC raised its stake in AppLovin by 2.8% during the 2nd quarter. Revolve Wealth Partners LLC now owns 851 shares of the company's stock valued at $438,000 after buying an additional 23 shares during the last quarter. IMA Advisory Services Inc. lifted its holdings in shares of AppLovin by 40.0% during the 1st quarter. IMA Advisory Services Inc. now owns 84 shares of the company's stock valued at $33,000 after buying an additional 24 shares during the period. CENTRAL TRUST Co boosted its stake in shares of AppLovin by 41.3% in the 1st quarter. CENTRAL TRUST Co now owns 89 shares of the company's stock worth $35,000 after buying an additional 26 shares during the last quarter. Mitchell Capital Management Co. grew its holdings in shares of AppLovin by 0.5% in the fourth quarter. Mitchell Capital Management Co. now owns 5,956 shares of the company's stock worth $4,013,000 after acquiring an additional 27 shares during the period. Finally, PFG Investments LLC grew its holdings in shares of AppLovin by 4.1% in the first quarter. PFG Investments LLC now owns 706 shares of the company's stock worth $281,000 after acquiring an additional 28 shares during the period. Institutional investors own 41.85% of the company's stock.

AppLovin Company Profile

AppLovin Corporation NASDAQ: APP is a technology company that provides software and services designed to help mobile application developers grow their businesses. Its platform supports user acquisition, advertising, monetization, measurement and other functions that enable developers to attract users and generate revenue from their applications.

AppLovin's offerings include AXON, an artificial-intelligence-powered software engine used to optimize advertising and user-acquisition campaigns; MAX, a platform for managing in-app advertising and mediation; and AppDiscovery, which helps developers promote their applications.

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