Wedbush Issues Optimistic Outlook for AppLovin Earnings

Key Points

• Wedbush has raised its Q4 2025 earnings estimates for AppLovin to $2.89 per share, increasing from a previous estimate of $2.72.
• The current consensus rating for AppLovin's stock is a "Moderate Buy" with an average price target of $579.81.
• AppLovin reported a 77.1% year-over-year revenue growth in its last quarterly earnings, achieving a net margin of 45.72% and beating earnings expectations.

AppLovin Corporation (NASDAQ:APP - Free Report) - Stock analysts at Wedbush raised their Q4 2025 earnings estimates for shares of AppLovin in a report issued on Monday, October 6th. Wedbush analyst A. Reese now anticipates that the company will post earnings of $2.89 per share for the quarter, up from their previous forecast of $2.72. Wedbush currently has a "Outperform" rating and a $745.00 target price 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 Q1 2026 earnings at $3.01 EPS, Q2 2026 earnings at $3.15 EPS and Q3 2026 earnings at $3.41 EPS.

A number of other analysts have also commented on the stock. Weiss Ratings restated a "buy (b-)" rating on shares of AppLovin in a research note on Saturday, September 27th. Needham & Company LLC reaffirmed a "hold" rating on shares of AppLovin in a report on Tuesday, August 26th. Wells Fargo & Company lifted their price objective on shares of AppLovin from $480.00 to $491.00 and gave the stock an "overweight" rating in a report on Thursday, August 21st. Piper Sandler lifted their price objective on shares of AppLovin from $500.00 to $740.00 and gave the stock an "overweight" rating in a report on Friday, September 26th. Finally, Scotiabank reaffirmed an "outperform" rating on shares of AppLovin in a report on Thursday, August 28th. Two analysts have rated the stock with a Strong Buy rating, twenty have given a Buy rating, three have issued a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat, the stock presently has a consensus rating of "Moderate Buy" and an average price target of $579.81.

AppLovin Stock Performance

Shares of APP stock opened at $587.00 on Tuesday. The firm has a market capitalization of $198.55 billion, a PE ratio of 83.38, a price-to-earnings-growth ratio of 3.74 and a beta of 2.53. The firm has a fifty day simple moving average of $518.90 and a two-hundred day simple moving average of $393.96. The company has a current ratio of 2.74, a quick ratio of 2.74 and a debt-to-equity ratio of 3.01. AppLovin has a 12 month low of $137.20 and a 12 month high of $745.61.

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

Institutional Investors Weigh In On AppLovin

Several institutional investors have recently added to or reduced their stakes in the business. Vanguard Group Inc. lifted its holdings in AppLovin by 0.4% during the second quarter. Vanguard Group Inc. now owns 17,902,795 shares of the company's stock valued at $6,267,410,000 after purchasing an additional 72,120 shares during the last quarter. Price T Rowe Associates Inc. MD increased its position in shares of AppLovin by 36.7% during the first quarter. Price T Rowe Associates Inc. MD now owns 6,588,483 shares of the company's stock valued at $1,745,752,000 after buying an additional 1,769,400 shares during the period. State Street Corp increased its position in shares of AppLovin by 2.4% during the second quarter. State Street Corp now owns 5,615,415 shares of the company's stock valued at $1,965,844,000 after buying an additional 133,402 shares during the period. Baillie Gifford & Co. increased its position in shares of AppLovin by 29.0% during the first quarter. Baillie Gifford & Co. now owns 5,270,355 shares of the company's stock valued at $1,396,486,000 after buying an additional 1,185,859 shares during the period. Finally, Invesco Ltd. increased its position in shares of AppLovin by 32.9% during the first quarter. Invesco Ltd. now owns 4,011,306 shares of the company's stock valued at $1,062,876,000 after buying an additional 992,316 shares during the period. 41.85% of the stock is owned by hedge funds and other institutional investors.

Insider Activity at AppLovin

In other AppLovin news, insider Victoria Valenzuela sold 35,000 shares of the company's stock in a transaction dated Thursday, September 4th. The shares were sold at an average price of $502.23, for a total transaction of $17,578,050.00. Following the sale, the insider directly owned 269,955 shares of the company's stock, valued at $135,579,499.65. This represents a 11.48% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, CEO Arash Adam Foroughi sold 26,200 shares of the company's stock in a transaction dated Friday, August 22nd. The shares were sold at an average price of $440.23, for a total transaction of $11,534,026.00. Following the sale, the chief executive officer directly owned 2,590,054 shares in the company, valued at approximately $1,140,219,472.42. This trade represents a 1.00% decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last 90 days, insiders have sold 1,156,788 shares of company stock worth $514,863,333. 13.66% of the stock is currently owned by company insiders.

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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