AppLovin (NASDAQ:APP) Sets New 12-Month Low After Analyst Downgrade

AppLovin Corporation (NASDAQ:APP)’s share price hit a new 52-week low during trading on Thursday after BTIG Research lowered their price target on the stock from $640.00 to $574.00. BTIG Research currently has a buy rating on the stock. AppLovin traded as low as $339.60 and last traded at $348.9120, with a volume of 656486 shares trading hands. The stock had previously closed at $417.80.

A number of other brokerages have also recently commented on APP. Weiss Ratings cut AppLovin from a “hold (c+)” rating to a “hold (c)” rating in a research note on Thursday, July 23rd. UBS Group increased their target price on AppLovin from $750.00 to $798.00 and gave the company a “buy” rating in a research note on Monday. Morgan Stanley restated an “overweight” rating on shares of AppLovin in a research report on Wednesday, May 27th. JPMorgan Chase & Co. increased their price target on shares of AppLovin from $500.00 to $515.00 and gave the company a “neutral” rating in a research report on Thursday, May 7th. Finally, Deutsche Bank Aktiengesellschaft reissued a “buy” rating and set a $660.00 price objective on shares of AppLovin in a research note on Thursday, May 7th. Two research analysts have rated the stock with a Strong Buy rating, fifteen have issued a Buy rating and seven have issued a Hold rating to the stock. Based on data from MarketBeat.com, AppLovin presently has an average rating of “Moderate Buy” and a consensus target price of $612.09.

Insider Buying and Selling at AppLovin

In other AppLovin news, CFO Matthew Stumpf sold 9,052 shares of the firm’s stock in a transaction that occurred on Thursday, May 28th. The shares were sold at an average price of $600.00, for a total transaction of $5,431,200.00. Following the sale, the chief financial officer directly owned 177,450 shares in the company, valued at approximately $106,470,000. This trade represents a 4.85% decrease in their position. The sale was disclosed in a filing with the SEC, which is accessible through this link. Also, CEO Arash Adam Foroughi sold 22,544 shares of AppLovin stock in a transaction that occurred on Friday, June 12th. The shares were sold at an average price of $494.98, for a total transaction of $11,158,829.12. Following the completion of the transaction, the chief executive officer directly owned 2,327,684 shares in the company, valued at approximately $1,152,157,026.32. The trade was a 0.96% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders sold 393,000 shares of company stock worth $197,297,363 in the last quarter. Company insiders own 12.81% of the company’s stock.

More AppLovin News

Here are the key news stories impacting AppLovin this week:

• Positive Sentiment: AppLovin reported revenue of approximately $1.924 billion, up 52.8% year over year, and earnings of $3.76 per share, in line with consensus estimates. The company also delivered an 83.8% adjusted EBITDA margin, highlighting continued operating leverage. AppLovin Announces Second Quarter 2026 Financial Results
• Positive Sentiment: The company’s financial position remains supportive of expansion, with roughly $3 billion in cash, $3.5 billion in debt and strong interest coverage. AppLovin is also opening its AXON Ads platform to self-service customers, potentially expanding beyond gaming into areas such as fintech and connected TV. AppLovin: A Dip We Were All Waiting For
• Positive Sentiment: Needham, BTIG and Bank of America retained buy ratings, although each reduced its price target. The lower targets still imply upside from the referenced $417.80 share price.
• Neutral Sentiment: Analyst sentiment became more divided. Wells Fargo reaffirmed an Equal Weight rating and cut its target to $357, while other firms continued to recommend buying the stock with materially lower targets.
• Neutral Sentiment: AppLovin said an SEC investigation involving the company has been closed, removing one potential overhang, although the news received less attention than the earnings disappointment. APP Stock Plunges After Revenue Miss and Soft Guidance
• Negative Sentiment: Second-quarter revenue fell short of Wall Street’s roughly $1.94 billion estimate, despite exceptional year-over-year growth. For the third quarter, management guided to $2.055 billion–$2.085 billion of revenue, with the midpoint slightly below the approximately $2.08 billion consensus. AppLovin Reports Second Quarter Revenue Below Wall Street Estimates
• Negative Sentiment: The revenue miss and cautious guidance overshadowed the earnings performance, triggering a large after-hours selloff and prompting concerns that AppLovin’s very high growth expectations had become difficult to exceed. AppLovin Second-Quarter Sales Gain and Soft Third-Quarter Outlook

Institutional Trading of AppLovin

Several hedge funds and other institutional investors have recently modified their holdings of APP. Belpointe Asset Management LLC grew its holdings in shares of AppLovin by 24.7% during the second quarter. Belpointe Asset Management LLC now owns 4,063 shares of the company’s stock worth $2,093,000 after buying an additional 805 shares in the last quarter. Fortis Capital Advisors LLC acquired a new position in AppLovin during the 2nd quarter worth approximately $1,297,000. Soltis Investment Advisors LLC boosted its position in AppLovin by 6.4% during the 2nd quarter. Soltis Investment Advisors LLC now owns 1,093 shares of the company’s stock worth $563,000 after acquiring an additional 66 shares during the last quarter. Daymark Wealth Partners LLC bought a new position in shares of AppLovin during the 2nd quarter worth approximately $207,000. Finally, Mitchell Capital Management Co. raised its holdings in shares of AppLovin by 2.5% in the second quarter. Mitchell Capital Management Co. now owns 9,762 shares of the company’s stock valued at $5,030,000 after purchasing an additional 241 shares during the last quarter. Institutional investors and hedge funds own 41.85% of the company’s stock.

AppLovin Stock Down 17.7%

The stock’s fifty day moving average price is $484.79 and its 200-day moving average price is $466.38. The company has a quick ratio of 3.24, a current ratio of 3.24 and a debt-to-equity ratio of 1.49. The company has a market capitalization of $115.51 billion, a price-to-earnings ratio of 29.29, a P/E/G ratio of 0.69 and a beta of 2.54.

AppLovin (NASDAQ:APP) last announced its earnings results on Tuesday, August 4th. The company reported $3.76 EPS for the quarter, hitting the consensus estimate of $3.76. AppLovin had a net margin of 64.29% and a return on equity of 219.37%. The business had revenue of $1.92 billion during the quarter, compared to analysts’ expectations of $1.94 billion. During the same quarter in the prior year, the company posted $2.39 earnings per share. The firm’s revenue was up 52.8% on a year-over-year basis. On average, sell-side analysts predict that AppLovin Corporation will post 15.93 earnings per share for the current fiscal year.

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.