Morgan Stanley Issues Pessimistic Forecast for AppLovin (NASDAQ:APP) Stock Price

AppLovin (NASDAQ:APP) had its price objective dropped by research analysts at Morgan Stanley from $720.00 to $650.00 in a research note issued on Thursday,Benzinga reports. The firm presently has an “overweight” rating on the stock. Morgan Stanley’s price target suggests a potential upside of 87.43% from the company’s previous close.

Other research analysts have also issued research reports about the stock. Citigroup restated a “buy” rating on shares of AppLovin in a report on Monday, June 22nd. Piper Sandler lowered shares of AppLovin from an “overweight” rating to a “neutral” rating and reduced their price objective for the company from $665.00 to $385.00 in a research note on Thursday. Scotiabank reissued a “sector outperform” rating and set a $515.00 target price on shares of AppLovin in a research note on Thursday. Argus started coverage on shares of AppLovin in a report on Tuesday, April 14th. They issued a “buy” rating and a $520.00 target price on the stock. Finally, Raymond James Financial assumed coverage on shares of AppLovin in a report on Monday, June 29th. They issued a “strong-buy” rating and a $640.00 target price on the stock. Two investment analysts have rated the stock with a Strong Buy rating, fifteen have issued a Buy rating and seven have given a Hold rating to the company. According to MarketBeat.com, AppLovin presently has an average rating of “Moderate Buy” and an average price target of $574.82.

AppLovin Stock Up 3.3%

Shares of APP opened at $346.80 on Thursday. The company has a market capitalization of $116.50 billion, a PE ratio of 26.66, a PEG ratio of 0.55 and a beta of 2.54. AppLovin has a 12 month low of $332.19 and a 12 month high of $745.61. The stock’s 50-day moving average price is $474.18 and its two-hundred day moving average price is $463.92. The company has a current ratio of 4.30, a quick ratio of 3.24 and a debt-to-equity ratio of 1.11.

AppLovin (NASDAQ:APP) last issued its quarterly earnings results on Tuesday, August 4th. The company reported $3.76 earnings per share for the quarter, meeting the consensus estimate of $3.76. The company had revenue of $1.92 billion during the quarter, compared to analysts’ expectations of $1.94 billion. AppLovin had a return on equity of 193.10% and a net margin of 64.58%.The business’s quarterly revenue was up 52.8% on a year-over-year basis. During the same quarter in the prior year, the firm posted $2.39 earnings per share. On average, analysts anticipate that AppLovin will post 15.87 EPS for the current year.

Insider Activity at AppLovin

In related news, CTO Vasily Shikin sold 62,804 shares of the stock in a transaction on Friday, May 22nd. The shares were sold at an average price of $484.42, for a total transaction of $30,423,513.68. Following the transaction, the chief technology officer directly owned 3,189,739 shares of the company’s stock, valued at $1,545,173,366.38. This represents a 1.93% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, Director Eduardo Vivas sold 163,910 shares of AppLovin stock in a transaction on Tuesday, June 16th. The shares were sold at an average price of $504.06, for a total transaction of $82,620,474.60. Following the completion of the sale, the director directly owned 6,785,087 shares of the company’s stock, valued at approximately $3,420,090,953.22. This trade represents a 2.36% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold 393,000 shares of company stock worth $197,297,363 over the last ninety days. 12.81% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

A number of institutional investors have recently added to or reduced their stakes in the company. Calamos Advisors LLC boosted its stake in shares of AppLovin by 73.3% in the 4th quarter. Calamos Advisors LLC now owns 48,737 shares of the company’s stock worth $32,840,000 after buying an additional 20,609 shares during the last quarter. Dara Capital US Inc. bought a new stake in AppLovin during the fourth quarter worth $1,747,000. Mirae Asset Global Investments Co. Ltd. lifted its holdings in AppLovin by 12.3% during the fourth quarter. Mirae Asset Global Investments Co. Ltd. now owns 195,265 shares of the company’s stock worth $131,573,000 after acquiring an additional 21,427 shares during the period. Fifth Third Bancorp boosted its position in AppLovin by 312.0% in the fourth quarter. Fifth Third Bancorp now owns 6,123 shares of the company’s stock worth $4,126,000 after purchasing an additional 4,637 shares during the last quarter. Finally, North Dakota State Investment Board purchased a new position in AppLovin in the fourth quarter worth $5,490,000. 41.85% of the stock is owned by institutional investors and hedge funds.

AppLovin News Summary

Here are the key news stories impacting AppLovin this week:

• Positive Sentiment: AppLovin reported second-quarter revenue of $1.92 billion, up 52.8% year over year, while earnings of $3.76 per share were in line with consensus. Strong consumer-vertical momentum and a robust third-quarter outlook support the company’s growth narrative. AppLovin Q2 2026 earnings call highlights
• Positive Sentiment: Management said recent AI model improvements were affected by timing, while live gains and broader consumer adoption could drive stronger growth in the third quarter. The expansion of AXON Ads into self-serve advertising and new verticals such as fintech and connected TV could increase AppLovin’s addressable market. APP Q2 earnings call highlights
• Positive Sentiment: Citigroup lowered its price target from $710 to $650 but maintained a “buy” rating. Morgan Stanley also kept an “overweight” rating with a $650 target, indicating analysts still see substantial upside after the selloff.
• Positive Sentiment: AppLovin’s chief financial officer said the SEC investigation involving the company has been closed, removing a potentially significant regulatory overhang. SEC probe closure report

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.