AppLovin (NASDAQ:APP) Stock Falls 3.5% – Here’s What Happened

Shares of AppLovin Corporation (NASDAQ:APP) dropped 3.5% during mid-day trading on Tuesday. The stock traded as low as $383.31 and last traded at $395.51. Approximately 5,430,173 shares were traded during mid-day trading, a decline of 4% from the average session volume of 5,629,000 shares. The stock had previously closed at $410.00.

Key Stories Impacting AppLovin

These are some of the APP stories that stood out recently:

• Positive Sentiment: AppLovin’s third-quarter results were strong: revenue rose 55.5% year over year to $2.18 billion and adjusted earnings per share beat estimates. The company also issued fourth-quarter guidance above expectations and expanded its share-repurchase plan, helping fuel a recent surge in the stock. Read More.
• Neutral Sentiment: Recent coverage highlights APP’s momentum and notes that shares had climbed substantially over the past month. That rally may support sentiment, but it can also leave the stock more sensitive to concerns about valuation or execution. Read More.
• Negative Sentiment: A Seeking Alpha article’s headline signals a rating downgrade, arguing that valuation concerns outweigh the company’s execution. This may add pressure after the stock’s rapid rebound. Read More.

Analysts Set New Price Targets

A number of analysts have weighed in on APP shares. The Goldman Sachs Group increased their price target on AppLovin from $400.00 to $445.00 and gave the stock a “neutral” rating in a report on Thursday, November 5th. HSBC cut their target price on AppLovin from $450.00 to $409.00 and set a “buy” rating on the stock in a research report on Monday, October 5th. Benchmark cut their target price on AppLovin from $500.00 to $440.00 and set a “buy” rating on the stock in a research report on Monday, August 17th. UBS Group decreased their target price on AppLovin from $790.00 to $414.00 and set a “buy” rating for the company in a research note on Wednesday, October 28th. Finally, Raymond James Financial lowered their target price on AppLovin from $640.00 to $590.00 in a report on Thursday, August 6th. Three equities research analysts have rated the stock with a Strong Buy rating, seventeen have assigned a Buy rating and eight have issued a Hold rating to the stock. According to MarketBeat, AppLovin has an average rating of “Moderate Buy” and an average target price of $497.93.

AppLovin Trading Down 2.7%

The company has a quick ratio of 3.80, a current ratio of 3.80 and a debt-to-equity ratio of 1.07. The stock has a market capitalization of $131.75 billion, a P/E ratio of 26.49, a P/E/G ratio of 0.80 and a beta of 2.51. The firm’s 50 day simple moving average is $298.73 and its two-hundred day simple moving average is $408.06.

AppLovin (NASDAQ:APP) last released its quarterly earnings data on Wednesday, November 4th. The company reported $4.30 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $4.03 by $0.27. The company had revenue of $2.18 billion for the quarter, compared to analysts’ expectations of $2.07 billion. AppLovin had a net margin of 65.89% and a return on equity of 182.97%. The business’s revenue was up 55.5% on a year-over-year basis. During the same quarter in the prior year, the firm earned $2.45 EPS. As a group, analysts forecast that AppLovin Corporation will post 16.25 earnings per share for the current fiscal year.

Institutional Investors Weigh In On AppLovin

Several hedge funds and other institutional investors have recently modified their holdings of APP. State Street Corp lifted its holdings in shares of AppLovin by 28.3% in the 2nd quarter. State Street Corp now owns 15,095,667 shares of the company’s stock worth $7,777,741,000 after purchasing an additional 3,328,338 shares in the last quarter. WCM Investment Management LLC increased its stake in AppLovin by 5.2% during the 1st quarter. WCM Investment Management LLC now owns 5,001,600 shares of the company’s stock valued at $1,860,995,000 after purchasing an additional 245,290 shares in the last quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC raised its holdings in AppLovin by 7.5% during the second quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 1,735,471 shares of the company’s stock worth $894,167,000 after buying an additional 121,605 shares during the last quarter. Bank of New York Mellon Corp acquired a new position in AppLovin during the second quarter worth $730,015,000. Finally, Amundi raised its holdings in AppLovin by 19.5% during the second quarter. Amundi now owns 1,332,633 shares of the company’s stock worth $686,612,000 after buying an additional 217,214 shares during the last quarter. Institutional investors own 41.85% of the company’s stock.

AppLovin Company Profile

AppLovin is a technology company that provides software to help mobile app developers and advertisers grow their businesses. Its platform connects advertisers seeking users with app publishers looking to monetize their audiences, using data and machine-learning tools to support advertising and user acquisition. The company’s products include AXON, its advertising optimization engine; AppDiscovery, which helps advertisers find and acquire users; and MAX, a platform for managing in-app advertising.