AppLovin (NASDAQ:APP) Shares Gap Down Following Analyst Downgrade

Shares of AppLovin Corporation (NASDAQ:APP) gapped down before the market opened on Thursday after Citigroup lowered their price target on the stock from $820.00 to $710.00. The stock had previously closed at $456.81, but opened at $404.00. Citigroup currently has a buy rating on the stock. AppLovin shares last traded at $383.1830, with a volume of 5,688,573 shares changing hands.

APP has been the subject of several other reports. Benchmark reaffirmed a “buy” rating on shares of AppLovin in a research note on Monday, February 2nd. Weiss Ratings lowered shares of AppLovin from a “buy (b-)” rating to a “hold (c+)” rating in a report on Thursday, January 15th. The Goldman Sachs Group decreased their price objective on shares of AppLovin from $710.00 to $585.00 and set a “neutral” rating on the stock in a report on Thursday. BTIG Research dropped their target price on shares of AppLovin from $771.00 to $640.00 and set a “buy” rating on the stock in a research report on Thursday. Finally, JPMorgan Chase & Co. upped their price target on shares of AppLovin from $425.00 to $650.00 and gave the stock a “neutral” rating in a research report on Thursday, November 6th. One equities research analyst has rated the stock with a Strong Buy rating, twenty have given a Buy rating, three have given a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat.com, the stock presently has an average rating of “Moderate Buy” and a consensus price target of $651.77.

Insider Buying and Selling

In related news, CEO Arash Adam Foroughi sold 30,888 shares of the company’s stock in a transaction dated Friday, November 21st. The shares were sold at an average price of $520.29, for a total transaction of $16,070,717.52. Following the completion of the sale, the chief executive officer owned 2,553,161 shares of the company’s stock, valued at approximately $1,328,384,136.69. This represents a 1.20% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, insider Victoria Valenzuela sold 7,609 shares of the firm’s stock in a transaction that occurred on Thursday, December 18th. The stock was sold at an average price of $657.13, for a total transaction of $5,000,102.17. Following the completion of the transaction, the insider directly owned 277,110 shares in the company, valued at $182,097,294.30. This trade represents a 2.67% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Over the last three months, insiders have sold 187,786 shares of company stock worth $100,914,925. 13.66% of the stock is owned by insiders.

Key AppLovin News

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

Institutional Investors Weigh In On AppLovin

Hedge funds have recently modified their holdings of the company. LFA Lugano Financial Advisors SA purchased a new stake in shares of AppLovin in the 2nd quarter valued at approximately $26,000. Board of the Pension Protection Fund purchased a new position in AppLovin in the fourth quarter worth approximately $27,000. Washington Trust Advisors Inc. grew its position in AppLovin by 160.0% in 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. Chilton Capital Management LLC acquired a new stake in AppLovin during the third quarter worth $29,000. Finally, Activest Wealth Management raised its position in AppLovin by 760.0% in the third quarter. Activest Wealth Management now owns 43 shares of the company’s stock valued at $31,000 after purchasing an additional 38 shares during the period. Hedge funds and other institutional investors own 41.85% of the company’s stock.

AppLovin Price Performance

The stock has a 50-day simple moving average of $596.51 and a 200 day simple moving average of $570.32. The company has a market cap 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 quick ratio of 3.25, a current ratio of 3.32 and a debt-to-equity ratio of 1.65.

AppLovin (NASDAQ:APP) last released 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. The business had revenue of $1.66 billion during the quarter, compared to analysts’ expectations of $1.61 billion. AppLovin had a return on equity of 245.64% and a net margin of 57.42%.The company’s revenue was up 66.0% compared to the same quarter last year. During the same period in the prior year, the business posted $1.73 EPS. Equities analysts expect that AppLovin Corporation will post 6.87 EPS for the current 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.