Wedbush Has Positive Outlook for AppLovin FY2026 Earnings

Key Points

• Wedbush has increased its FY2026 earnings per share (EPS) forecast for AppLovin from $12.36 to $13.33, maintaining an "Outperform" rating and setting a target price of $745.00 for the stock.
• AppLovin reported $1.26 billion in revenue for the last quarter, reflecting a 77.1% year-over-year increase, although it fell short of analyst estimates.
• Insider selling occurred recently, with CEO Arash Adam Foroughi and another insider offloading significant shares, resulting in a 3.32% and 11.48% decrease in their ownership, respectively.

AppLovin Corporation (NASDAQ:APP - Free Report) - Investment analysts at Wedbush raised their FY2026 earnings per share (EPS) estimates for AppLovin in a research note issued to investors on Monday, October 6th. Wedbush analyst A. Reese now forecasts that the company will post earnings of $13.33 per share for the year, up from their previous forecast of $12.36. Wedbush currently has a "Outperform" rating and a $745.00 price objective on the stock. The consensus estimate for AppLovin's current full-year earnings is $6.87 per share. Wedbush also issued estimates for AppLovin's Q4 2026 earnings at $3.76 EPS, Q1 2027 earnings at $3.94 EPS, Q2 2027 earnings at $4.13 EPS, Q3 2027 earnings at $4.46 EPS and FY2027 earnings at $17.44 EPS.

Other analysts also recently issued research reports about the stock. Needham & Company LLC reaffirmed a "hold" rating on shares of AppLovin in a research note on Tuesday, August 26th. Citigroup lifted their price target on shares of AppLovin from $600.00 to $850.00 and gave the company a "buy" rating in a research note on Wednesday, October 1st. JPMorgan Chase & Co. lifted their price target on shares of AppLovin from $400.00 to $425.00 and gave the company a "neutral" rating in a research note on Thursday, August 7th. Wells Fargo & Company lifted their price target on shares of AppLovin from $480.00 to $491.00 and gave the company an "overweight" rating in a research note on Thursday, August 21st. Finally, Morgan Stanley lifted their price target on shares of AppLovin from $480.00 to $750.00 and gave the company an "overweight" rating in a research note on Monday, September 29th. One equities research analyst has rated the stock with a Strong Buy rating, twenty have given a Buy rating, four have given a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat, AppLovin currently has an average rating of "Moderate Buy" and an average target price of $579.81.

AppLovin Stock Up 7.6%

Shares of NASDAQ:APP opened at $631.85 on Wednesday. AppLovin has a 1 year low of $139.40 and a 1 year high of $745.61. The business has a 50 day simple moving average of $524.30 and a two-hundred day simple moving average of $395.61. The firm has a market capitalization of $213.72 billion, a PE ratio of 89.75, a price-to-earnings-growth ratio of 3.22 and a beta of 2.53. The company has a debt-to-equity ratio of 3.01, a current ratio of 2.74 and a quick ratio of 2.74.

AppLovin (NASDAQ:APP - Get Free Report) last announced its earnings results on Wednesday, August 6th. The company reported $2.26 earnings per share (EPS) for the quarter, beating the consensus estimate of $2.05 by $0.21. AppLovin had a return on equity of 252.67% and a net margin of 45.72%.The business had revenue of $1.26 billion during the quarter, compared to analyst estimates of $1.37 billion. During the same quarter in the previous year, the business earned $0.89 earnings per share. The company's revenue for the quarter was up 77.1% compared to the same quarter last year.

Insider Buying and Selling at AppLovin

In other news, CEO Arash Adam Foroughi sold 90,000 shares of the company's stock in a transaction on Thursday, August 21st. The stock was sold at an average price of $421.04, for a total transaction of $37,893,600.00. Following the transaction, the chief executive officer directly owned 2,620,054 shares of the company's stock, valued at approximately $1,103,147,536.16. This represents a 3.32% 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, insider Victoria Valenzuela sold 35,000 shares of the company's stock in a transaction on Thursday, September 4th. The stock was sold at an average price of $502.23, for a total value of $17,578,050.00. Following the transaction, the insider directly owned 269,955 shares in the company, valued at approximately $135,579,499.65. The trade was a 11.48% decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last 90 days, insiders sold 1,156,788 shares of company stock valued at $514,863,333. Corporate insiders own 13.66% of the company's stock.

Hedge Funds Weigh In On AppLovin

A number of large investors have recently made changes to their positions in the business. Avestar Capital LLC lifted its position in shares of AppLovin by 2.1% during the 2nd quarter. Avestar Capital LLC now owns 1,117 shares of the company's stock worth $391,000 after purchasing an additional 23 shares during the last quarter. Vestcor Inc lifted its position in shares of AppLovin by 0.8% during the 1st quarter. Vestcor Inc now owns 4,108 shares of the company's stock worth $1,088,000 after purchasing an additional 33 shares during the last quarter. RWA Wealth Partners LLC lifted its position in shares of AppLovin by 0.4% during the 2nd quarter. RWA Wealth Partners LLC now owns 7,680 shares of the company's stock worth $2,689,000 after purchasing an additional 33 shares during the last quarter. Geneos Wealth Management Inc. lifted its position in shares of AppLovin by 0.8% during the 2nd quarter. Geneos Wealth Management Inc. now owns 4,431 shares of the company's stock worth $1,551,000 after purchasing an additional 33 shares during the last quarter. Finally, Fortitude Family Office LLC lifted its position in shares of AppLovin by 32.7% during the 2nd quarter. Fortitude Family Office LLC now owns 138 shares of the company's stock worth $48,000 after purchasing an additional 34 shares during the last quarter. 41.85% of the stock is owned by institutional investors and hedge funds.

About AppLovin

AppLovin Corporation engages in building a software-based platform for advertisers to enhance the marketing and monetization of their content in the United States and internationally. It operates through two segments, Software Platform and Apps. The company's software solutions include AppDiscovery, a marketing software solution, which matches advertiser demand with publisher supply through auctions; MAX, an in-app bidding software that optimizes the value of a publisher's advertising inventory by running a real-time competitive auction; Adjust, a measurement and analytics marketing platform that provides marketers with the visibility, insights, and tools needed to grow their apps from early stage to maturity; and Wurl, a connected TV platform, which distributes streaming video for content companies and provides advertising and publishing solutions through its AdPool, ContentDiscovery, and Global FAST Pass products.

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