Royal Bank Of Canada Has Lowered Expectations for AppLovin (NASDAQ:APP) Stock Price

Key Points

• Royal Bank of Canada cut AppLovin’s price target from $700 to $575 while maintaining an “outperform” rating, implying about 67% upside from the reported $343.98 share price.
• Analyst sentiment remains broadly positive, with a “Moderate Buy” consensus and average target of $580.73, though several firms—including Needham and Piper Sandler—also lowered targets or ratings after the company’s results.
• AppLovin reported 52.8% year-over-year revenue growth and earnings in line with estimates, but revenue missed expectations and its third-quarter outlook was viewed as soft, contributing to a sharp stock decline.

AppLovin (NASDAQ:APP - Get Free Report) had its target price dropped by stock analysts at Royal Bank Of Canada from $700.00 to $575.00 in a research report issued on Thursday,Benzinga reports. The brokerage presently has an "outperform" rating on the stock. Royal Bank Of Canada's price target indicates a potential upside of 67.16% from the company's current price.

APP has been the subject of a number of other reports. Needham & Company LLC reduced their price target on shares of AppLovin from $700.00 to $500.00 and set a "buy" rating for the company in a research note on Thursday. Weiss Ratings cut shares of AppLovin from a "hold (c+)" rating to a "hold (c)" rating in a research report on Thursday, July 23rd. Citigroup reaffirmed a "buy" rating on shares of AppLovin in a research note on Monday, June 22nd. Scotiabank reaffirmed a "sector outperform" rating and issued a $515.00 target price on shares of AppLovin in a research report on Thursday. Finally, Piper Sandler lowered AppLovin from an "overweight" rating to a "neutral" rating and dropped their target price for the stock from $665.00 to $385.00 in a report on Thursday. Two analysts have rated the stock with a Strong Buy rating, fifteen have issued a Buy rating and seven have given a Hold rating to the stock. According to data from MarketBeat.com, AppLovin has a consensus rating of "Moderate Buy" and an average target price of $580.73.

AppLovin Price Performance

NASDAQ APP traded down $73.83 on Thursday, hitting $343.98. The company had a trading volume of 9,825,014 shares, compared to its average volume of 5,682,482. AppLovin has a 12-month low of $332.19 and a 12-month high of $745.61. The company has a debt-to-equity ratio of 1.49, a current ratio of 3.24 and a quick ratio of 3.24. The company's fifty day moving average price is $484.79 and its 200-day moving average price is $466.38. The company has a market capitalization of $115.55 billion, a PE ratio of 29.52, a PEG ratio of 0.69 and a beta of 2.54.

AppLovin (NASDAQ:APP - Get Free Report) last issued its earnings results on Tuesday, August 4th. The company reported $3.76 earnings per share (EPS) for the quarter, hitting analysts' consensus estimates of $3.76. The business had revenue of $1.92 billion during the quarter, compared to the consensus estimate of $1.94 billion. AppLovin had a return on equity of 219.37% and a net margin of 64.29%.The company's revenue for the quarter was up 52.8% on a year-over-year basis. During the same period last year, the company earned $2.39 EPS. As a group, analysts predict that AppLovin will post 15.93 earnings per share for the current year.

Insider Buying and Selling at AppLovin

In other news, CEO Arash Adam Foroughi sold 33,042 shares of the company's stock in a transaction dated Thursday, June 11th. The stock was sold at an average price of $486.95, for a total value of $16,089,801.90. Following the sale, the chief executive officer owned 2,369,351 shares in the company, valued at $1,153,755,469.45. This represents a 1.38% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through the SEC website. Also, Director Eduardo Vivas sold 163,910 shares of AppLovin stock in a transaction on Tuesday, June 16th. The shares were sold at an average price of $504.06, for a total transaction of $82,620,474.60. Following the completion of the transaction, the director directly owned 6,785,087 shares of the company's stock, valued at $3,420,090,953.22. The trade was a 2.36% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. In the last three months, insiders have sold 393,000 shares of company stock worth $197,297,363. Insiders own 12.81% of the company's stock.

Institutional Investors Weigh In On AppLovin

A number of large investors have recently made changes to their positions in APP. Washington Trust Advisors Inc. grew its stake in shares of AppLovin by 160.0% in the 4th quarter. Washington Trust Advisors Inc. now owns 39 shares of the company's stock valued at $27,000 after buying an additional 24 shares during the period. Mcguire Capital Advisors Inc. purchased a new stake in AppLovin in the 4th quarter valued at $27,000. Laurel Wealth Advisors LLC acquired a new position in AppLovin in the 4th quarter valued at $32,000. Osbon Capital Management LLC purchased a new position in shares of AppLovin during the 4th quarter worth approximately $36,000. Finally, Dogwood Wealth Management LLC lifted its holdings in AppLovin by 84.4% in the fourth quarter. Dogwood Wealth Management LLC now owns 59 shares of the company's stock valued at $40,000 after acquiring an additional 27 shares during the period. 41.85% of the stock is currently owned by hedge funds and other institutional investors.

Key Headlines Impacting AppLovin

Here are the key news stories impacting AppLovin this week:

• Positive Sentiment: AppLovin reported second-quarter revenue of approximately $1.924 billion, up 52.8% year over year, and earnings of $3.76 per share, in line with consensus and above the prior-year result. Adjusted EBITDA margin was reportedly 83.8%, highlighting continued operating leverage. AppLovin Announces Second Quarter 2026 Financial Results
• Positive Sentiment: Management attributed the revenue shortfall partly to the timing of model improvements and said live gains, consumer scaling and continued advertising-platform expansion could support stronger growth in the third quarter. APP Q2 Earnings Call Highlights Model Timing, Q3 Reacceleration
• Positive Sentiment: The balance sheet remains supportive of investment, with roughly $3 billion in cash and $3.5 billion in debt. AppLovin is also expanding AXON Ads through a self-serve offering aimed at new verticals such as fintech and connected TV, potentially increasing its addressable market. AppLovin: A Dip We Were All Waiting For
• Neutral Sentiment: AppLovin’s CFO said an SEC probe involving the company has been closed, removing a reported regulatory overhang, although the earnings reaction remained focused on operating results. APP Stock Plunges After Revenue Miss and Soft Guidance
• Negative Sentiment: Second-quarter revenue was below the approximately $1.94 billion analyst forecast. Because AppLovin’s valuation reflects very high growth expectations, the top-line miss overshadowed the strong profit performance. AppLovin Stock Falls on Q2 Revenue Miss
• Negative Sentiment: Third-quarter revenue guidance of roughly $2.055 billion to $2.085 billion was viewed as below Wall Street expectations at the midpoint, raising concerns that monetization growth may be temporarily slowing. AppLovin Second-Quarter Sales Gain, Gives Soft Third-Quarter Outlook
• Negative Sentiment: Several analysts reduced their price targets following the report, including Needham, BTIG, Bank of America and Wells Fargo. Although most maintained positive or neutral ratings, the cuts signal lower near-term expectations and reinforce investor caution. AppLovin Analysts Cut Their Forecasts Following Q2 Earnings

About AppLovin

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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