Wells Fargo & Company Has Lowered Expectations for AppLovin (NASDAQ:APP) Stock Price

AppLovin (NASDAQ:APP) had its price target reduced by analysts at Wells Fargo & Company from $735.00 to $543.00 in a research report issued on Thursday, MarketBeat Ratings reports. The firm presently has an “overweight” rating on the stock. Wells Fargo & Company‘s target price suggests a potential upside of 38.68% from the company’s previous close.

A number of other equities analysts have also recently issued reports on the company. BTIG Research dropped their target price on AppLovin from $771.00 to $640.00 and set a “buy” rating for the company in a report on Thursday. Citigroup dropped their price objective on AppLovin from $850.00 to $820.00 and set a “buy” rating for the company in a research note on Wednesday, November 12th. Benchmark restated a “buy” rating on shares of AppLovin in a research note on Monday, February 2nd. Deutsche Bank Aktiengesellschaft set a $705.00 target price on shares of AppLovin and gave the stock a “buy” rating in a research report on Wednesday, October 22nd. Finally, Needham & Company LLC restated a “buy” rating and issued a $700.00 price target on shares of AppLovin in a research report on Thursday. One equities research analyst has rated the stock with a Strong Buy rating, twenty have issued a Buy rating, three have given a Hold rating and one has issued a Sell rating to the company’s stock. Based on data from MarketBeat.com, the stock currently has an average rating of “Moderate Buy” and an average price target of $651.77.

AppLovin Trading Up 6.7%

Shares of AppLovin stock opened at $391.55 on Thursday. AppLovin has a 52-week low of $200.50 and a 52-week high of $745.61. The firm has a market capitalization of $132.32 billion, a PE ratio of 40.16, a price-to-earnings-growth ratio of 1.20 and a beta of 2.49. The company has a debt-to-equity ratio of 1.65, a current ratio of 3.32 and a quick ratio of 3.25. The company’s fifty day moving average price is $596.51 and its two-hundred day moving average price is $570.32.

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

Insider Activity at AppLovin

In other news, insider Victoria Valenzuela sold 7,609 shares of the stock in a transaction that occurred on Thursday, December 18th. The shares were sold at an average price of $657.13, for a total transaction of $5,000,102.17. Following the sale, the insider directly owned 277,110 shares of the company’s stock, valued at $182,097,294.30. This represents a 2.67% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, CEO Arash Adam Foroughi sold 4,069 shares of the firm’s stock in a transaction that occurred on Friday, November 21st. The shares were sold at an average price of $497.50, for a total transaction of $2,024,327.50. Following the completion of the sale, the chief executive officer directly owned 2,998,948 shares of the company’s stock, valued at approximately $1,491,976,630. This represents a 0.14% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold 187,786 shares of company stock worth $100,914,925 in the last quarter. Insiders own 13.66% of the company’s stock.

Institutional Inflows and Outflows

Several large investors have recently bought and sold shares of the company. CBIZ Investment Advisory Services LLC raised its position in shares of AppLovin by 58.6% during the third quarter. CBIZ Investment Advisory Services LLC now owns 46 shares of the company’s stock worth $33,000 after acquiring an additional 17 shares during the last quarter. Redhawk Wealth Advisors Inc. increased its position in AppLovin by 2.9% in the fourth quarter. Redhawk Wealth Advisors Inc. now owns 640 shares of the company’s stock worth $431,000 after purchasing an additional 18 shares during the period. Verdence Capital Advisors LLC raised its holdings in AppLovin by 5.7% during the 4th quarter. Verdence Capital Advisors LLC now owns 333 shares of the company’s stock worth $224,000 after purchasing an additional 18 shares during the last quarter. Versant Capital Management Inc lifted its position in AppLovin by 2.8% during the 3rd quarter. Versant Capital Management Inc now owns 701 shares of the company’s stock valued at $504,000 after purchasing an additional 19 shares during the period. Finally, Claro Advisors LLC boosted its stake in shares of AppLovin by 3.2% in the 3rd quarter. Claro Advisors LLC now owns 647 shares of the company’s stock valued at $465,000 after purchasing an additional 20 shares during the last quarter. Institutional investors and hedge funds own 41.85% of the company’s stock.

More 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

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.