AppLovin (NASDAQ:APP) Earns “Buy” Rating from Needham & Company LLC

AppLovin (NASDAQ:APP)‘s stock had its “buy” rating reissued by analysts at Needham & Company LLC in a report issued on Thursday,Benzinga reports. They presently have a $700.00 price target on the stock. Needham & Company LLC’s target price suggests a potential upside of 78.78% from the stock’s previous close.

Several other brokerages also recently weighed in on APP. Evercore restated a “buy” rating on shares of AppLovin in a research note on Friday, January 30th. Jefferies Financial Group increased their price objective on AppLovin from $800.00 to $860.00 and gave the company a “buy” rating in a report on Thursday, December 11th. Wells Fargo & Company raised their price objective on AppLovin from $721.00 to $735.00 and gave the stock an “overweight” rating in a research report on Thursday, January 8th. BTIG Research restated a “buy” rating and set a $771.00 target price on shares of AppLovin in a research note on Wednesday, December 17th. Finally, Wedbush reiterated an “outperform” rating and issued a $465.00 price target on shares of AppLovin in a research note on Thursday, February 5th. One analyst has rated the stock with a Strong Buy rating, twenty have given a Buy rating, three have assigned a Hold rating and one has given a Sell rating to the company’s stock. According to MarketBeat.com, the company has an average rating of “Moderate Buy” and a consensus price target of $651.77.

AppLovin Stock Performance

Shares of AppLovin stock opened at $391.55 on Thursday. The company has a market capitalization of $132.32 billion, a PE ratio of 40.16, a P/E/G ratio of 1.20 and a beta of 2.49. The company has a 50-day simple moving average of $596.51 and a two-hundred day simple moving average of $570.32. AppLovin has a one year low of $200.50 and a one year high of $745.61. The company has a debt-to-equity ratio of 1.65, a quick ratio of 3.25 and a current ratio of 3.32.

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

Insider Transactions at AppLovin

In related news, CEO Arash Adam Foroughi sold 4,069 shares of the company’s stock in a transaction that occurred on Friday, November 21st. The stock was sold at an average price of $497.50, for a total value of $2,024,327.50. Following the sale, the chief executive officer owned 2,998,948 shares in the company, valued at $1,491,976,630. This represents a 0.14% decrease in their ownership of the stock. The sale was disclosed in a filing 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 that occurred on Monday, December 8th. The stock was sold at an average price of $693.32, for a total transaction of $103,998.00. Following the completion of the transaction, the director owned 2,829 shares in the company, valued at approximately $1,961,402.28. This trade represents a 5.04% decrease in their position. The SEC filing for this sale provides additional information. Over the last three months, insiders sold 187,786 shares of company stock worth $100,914,925. 13.66% of the stock is owned by company insiders.

Institutional Inflows and Outflows

Several institutional investors have recently made changes to their positions in the business. Arete Wealth Advisors LLC raised its holdings in shares of AppLovin by 53.7% during the fourth quarter. Arete Wealth Advisors LLC now owns 4,946 shares of the company’s stock worth $3,333,000 after purchasing an additional 1,727 shares during the last quarter. Kestra Advisory Services LLC grew its position in AppLovin by 0.8% during the 4th quarter. Kestra Advisory Services LLC now owns 8,519 shares of the company’s stock worth $5,740,000 after purchasing an additional 68 shares during the period. Liberty One Investment Management LLC purchased a new position in shares of AppLovin during the 4th quarter valued at about $179,000. Transamerica Financial Advisors LLC raised its stake in shares of AppLovin by 79.2% during the 4th quarter. Transamerica Financial Advisors LLC now owns 215 shares of the company’s stock valued at $145,000 after buying an additional 95 shares during the last quarter. Finally, Parkside Financial Bank & Trust lifted its holdings in shares of AppLovin by 19.9% in the 4th quarter. Parkside Financial Bank & Trust now owns 1,321 shares of the company’s stock valued at $890,000 after buying an additional 219 shares during the period. Hedge funds and other institutional investors own 41.85% of the company’s stock.

Key Stories Impacting AppLovin

Here are the key news stories impacting AppLovin this week:

• Positive Sentiment: Q4 beat and raise — AppLovin reported stronger‑than‑expected Q4 revenue and EPS and issued 2026 guidance above Street estimates, giving investors a fundamentals‑driven reason to buy the stock. AppLovin (APP) Q4 Earnings and Revenues Surpass Estimates
• Positive Sentiment: Outstanding margins and cash flow — management reported ~84% adjusted EBITDA margins and very high free‑cash‑flow conversion, highlighting durable profitability that supports a premium valuation. AppLovin Rides on Margin Power: Here’s What You Should Know
• Positive Sentiment: Analyst support and buybacks — several firms reaffirmed or raised targets (and management disclosed large buybacks / cash generation commentary), which helps underwrite the rebound narrative. AppLovin price target raised by Wedbush
• Neutral Sentiment: Mixed analyst moves — although many shops kept Buy/Outperform ratings, several groups trimmed price targets after the volatility; this creates both support and room for further target revisions. Wells Fargo price target change and analyst notes
• Neutral Sentiment: Short‑interest data appears noisy/insignificant in recent reports (entries show zero/NaN), so shorting pressure doesn’t explain today’s move. (No meaningful short interest link available.)
• Negative Sentiment: Competition and AI fears — investors remain worried about potential competition (CloudX) and whether large platforms like Meta could encroach on AppLovin’s adtech niche; that fear helped trigger sharp earlier selloffs. AppLovin Plunges 18% Despite Blowout Earnings as AI Fears Rule
• Negative Sentiment: Broader software/AI rotation — the market‑wide re‑pricing of software names and headlines about a sector pullback have pressured APP despite the company’s strong quarter, prolonging volatility. Tech Stocks Down 50%: Buy the Dip or a Major Market Shift?
• Negative Sentiment: Market panic narrative — several commentators say recent selling was driven more by fear than fundamentals, meaning sentiment swings can still produce abrupt downside even after good results. AppLovin drops over competitor concerns, but analysts highlight positive growth drivers

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.