Wedbush Issues Positive Forecast for AppLovin Earnings

Key Points

• Analysts at Wedbush have raised their earnings estimates for AppLovin to $2.44 per share for Q3 2025, resulting in an "Outperform" rating and a target price of $620.00.
• The stock recently opened at $437.34, with a market capitalization of approximately $147.99 billion and a year-high of $525.15.
• Insiders have sold a significant number of shares recently, including Director Herald Y. Chen, who sold 400,000 shares worth nearly $150 million.

AppLovin Corporation (NASDAQ:APP - Free Report) - Analysts at Wedbush boosted their Q3 2025 earnings estimates for shares of AppLovin in a report issued on Thursday, August 7th. Wedbush analyst A. Reese now expects that the company will earn $2.44 per share for the quarter, up from their previous estimate of $2.23. Wedbush currently has a "Outperform" rating and a $620.00 target price on the stock. The consensus estimate for AppLovin's current full-year earnings is $6.87 per share.

Other research analysts have also issued research reports about the company. Needham & Company LLC reaffirmed a "hold" rating on shares of AppLovin in a research report on Thursday, June 26th. Wall Street Zen raised shares of AppLovin from a "hold" rating to a "buy" rating in a report on Saturday, July 26th. Morgan Stanley upped their price target on shares of AppLovin from $460.00 to $480.00 and gave the company an "overweight" rating in a research report on Thursday. UBS Group increased their price target on shares of AppLovin from $450.00 to $475.00 and gave the stock a "buy" rating in a research note on Thursday, May 8th. Finally, BTIG Research lifted their price objective on shares of AppLovin from $480.00 to $483.00 and gave the company a "buy" rating in a research note on Wednesday, July 23rd. One equities research analyst has rated the stock with a sell rating, three have issued a hold rating, nineteen have given a buy rating and one has assigned a strong buy rating to the stock. According to MarketBeat.com, AppLovin presently has an average rating of "Moderate Buy" and an average target price of $472.33.

AppLovin Stock Up 12.0%

AppLovin stock opened at $437.34 on Friday. The company has a market capitalization of $147.99 billion, a P/E ratio of 62.12, a PEG ratio of 2.33 and a beta of 2.43. The company has a debt-to-equity ratio of 6.10, a quick ratio of 1.68 and a current ratio of 1.68. AppLovin has a fifty-two week low of $66.16 and a fifty-two week high of $525.15. The stock has a 50-day simple moving average of $365.28 and a 200-day simple moving average of $339.24.

AppLovin (NASDAQ:APP - Get Free Report) last announced its quarterly earnings results on Wednesday, August 6th. The company reported $2.26 earnings per share for the quarter, beating analysts' consensus estimates of $2.05 by $0.21. The firm had revenue of $1.26 billion during the quarter, compared to analysts' expectations of $1.37 billion. AppLovin had a net margin of 45.72% and a return on equity of 274.45%. AppLovin's quarterly revenue was up 77.1% compared to the same quarter last year. During the same period in the previous year, the company earned $0.89 earnings per share.

Institutional Inflows and Outflows

A number of hedge funds have recently added to or reduced their stakes in the stock. Fuller & Thaler Asset Management Inc. acquired a new stake in AppLovin in the 4th quarter valued at about $25,000. Atala Financial Inc purchased a new stake in shares of AppLovin in the first quarter valued at about $26,000. Hilltop National Bank purchased a new stake in shares of AppLovin in the second quarter valued at about $26,000. LFA Lugano Financial Advisors SA acquired a new stake in shares of AppLovin in the second quarter valued at approximately $26,000. Finally, Alpine Bank Wealth Management purchased a new position in shares of AppLovin during the 1st quarter worth approximately $27,000. 41.85% of the stock is owned by hedge funds and other institutional investors.

Insiders Place Their Bets

In other news, Director Herald Y. Chen sold 400,000 shares of the company's stock in a transaction on Wednesday, May 14th. The shares were sold at an average price of $374.61, for a total transaction of $149,844,000.00. Following the transaction, the director directly owned 221,209 shares of the company's stock, valued at $82,867,103.49. This represents a 64.39% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, CEO Arash Adam Foroughi sold 100,000 shares of the firm's stock in a transaction dated Wednesday, May 21st. The shares were sold at an average price of $367.51, for a total transaction of $36,751,000.00. Following the completion of the sale, the chief executive officer owned 2,760,363 shares of the company's stock, valued at $1,014,461,006.13. This trade represents a 3.50% decrease in their position. The disclosure for this sale can be found here. Over the last ninety days, insiders sold 1,212,968 shares of company stock worth $455,062,980. Insiders own 13.66% of the company's stock.

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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