AppLovin (NASDAQ:APP) Stock Price Up 3.3% – Should You Buy?

AppLovin Corporation (NASDAQ:APP)’s stock price shot up 3.3% during mid-day trading on Tuesday . The company traded as high as $398.11 and last traded at $393.22. 4,884,145 shares were traded during trading, a decline of 29% from the average session volume of 6,918,043 shares. The stock had previously closed at $380.62.

Key AppLovin News

Here are the key news stories impacting AppLovin this week:

• Positive Sentiment: MarketBeat / Altimetry spotlights AppLovin as an AI beneficiary, arguing recent selling is narrative panic rather than weakening fundamentals and highlighting AppLovin’s proprietary data and AI optimization as durable advantages. This narrative supports a re-rating if investors rotate back into AI beneficiaries. Read More.
• Positive Sentiment: Analysts remain constructive: Bank of America trimmed its price target (to $705) after the earnings call but kept a Buy rating — signaling confidence in the business despite a valuation reset. That maintained-buy stance helps cushion sentiment. Read More.
• Positive Sentiment: Independent upgrades and comparative coverage (Seeking Alpha, Zacks/Yahoo pieces comparing APP vs. Arm) emphasize AppLovin’s robust Q4 growth, high EBITDA margins and AI tailwinds — increasing investor interest after the recent correction. Read More. | Read More.
• Positive Sentiment: Macro/sector support: Raymond James and others note a tradable bounce developing in software after a steep selloff, which can lift high-beta, AI-exposed names like AppLovin when sector flows recover. Read More.
• Neutral Sentiment: Headline coverage and trade reporting (MSN) summarized the move today and likely amplified momentum, but is descriptive rather than new fundamental information. Read More.
• Neutral Sentiment: Short‑interest entries in the data feed show zero/NaN values (likely a reporting anomaly) — not a meaningful short‑squeeze signal based on available figures. (Data should be treated with caution.)
• Negative Sentiment: Contrarian coverage (Forbes) warns the recent selloff reflects real investor worry about stretched valuations and potential growth deceleration despite strong recent results — a reminder that valuation risk remains if AI enthusiasm cools. Read More.

Analysts Set New Price Targets

A number of research firms have weighed in on APP. Zacks Research downgraded AppLovin from a “strong-buy” rating to a “hold” rating in a research report on Thursday, February 12th. Benchmark reissued a “buy” rating on shares of AppLovin in a research report on Monday, February 2nd. JPMorgan Chase & Co. increased their target price on shares of AppLovin from $425.00 to $650.00 and gave the stock a “neutral” rating in a report on Thursday, November 6th. The Goldman Sachs Group lowered their price target on shares of AppLovin from $710.00 to $585.00 and set a “neutral” rating on the stock in a research note on Thursday, February 12th. Finally, Wedbush boosted their price target on shares of AppLovin from $465.00 to $640.00 and gave the stock an “outperform” rating in a research report on Thursday, February 12th. Twenty-one research analysts have rated the stock with a Buy rating, three have issued a Hold rating and one has issued a Sell rating to the company. According to MarketBeat.com, AppLovin has a consensus rating of “Moderate Buy” and an average price target of $651.77.

AppLovin Stock Performance

The company has a market capitalization of $150.36 billion, a P/E ratio of 45.63, a PEG ratio of 0.87 and a beta of 2.49. The stock’s fifty day moving average price is $545.19 and its 200-day moving average price is $570.96. The company has a debt-to-equity ratio of 1.65, a quick ratio of 3.32 and a current ratio of 3.32.

AppLovin (NASDAQ:APP) last announced its quarterly earnings results on Wednesday, February 11th. The company reported $3.24 earnings per share for the quarter, topping analysts’ consensus estimates of $2.89 by $0.35. AppLovin had a return on equity of 245.64% and a net margin of 57.42%.The firm had revenue of $1.66 billion for the quarter, compared to the consensus estimate of $1.61 billion. During the same quarter in the previous year, the business earned $1.73 earnings per share. The business’s revenue was up 66.0% compared to the same quarter last year. As a group, research analysts anticipate that AppLovin Corporation will post 6.87 EPS for the current fiscal year.

Insiders Place Their Bets

In other AppLovin news, insider Victoria Valenzuela sold 7,609 shares of the company’s stock in a transaction on Thursday, December 18th. The shares were sold at an average price of $657.13, for a total value of $5,000,102.17. Following the transaction, the insider directly owned 277,110 shares in the company, valued at $182,097,294.30. The trade was a 2.67% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this hyperlink. Also, Director Dawson Alyssa Harvey sold 150 shares of the stock in a transaction dated Monday, December 8th. The shares were sold at an average price of $693.32, for a total transaction of $103,998.00. Following the completion of the transaction, the director directly owned 2,829 shares in the company, valued at $1,961,402.28. The trade was a 5.04% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. 13.66% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On AppLovin

A number of large investors have recently made changes to their positions in the company. LFA Lugano Financial Advisors SA acquired a new position in AppLovin in the 2nd quarter valued at $26,000. Board of the Pension Protection Fund acquired a new position in shares of AppLovin in the fourth quarter valued at about $27,000. Washington Trust Advisors Inc. increased its position in AppLovin by 160.0% during the fourth quarter. Washington Trust Advisors Inc. now owns 39 shares of the company’s stock worth $27,000 after acquiring an additional 24 shares during the period. Mcguire Capital Advisors Inc. bought a new position in AppLovin during the fourth quarter worth about $27,000. Finally, Chilton Capital Management LLC acquired a new stake in AppLovin in the 3rd quarter worth about $29,000. Institutional investors own 41.85% of the company’s stock.

AppLovin Company Profile

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.