AppLovin (NASDAQ:APP) Stock Price Up 6.7% on Analyst Upgrade

AppLovin Corporation (NASDAQ:APP)’s share price was up 6.7% on Friday after Scotiabank raised their price target on the stock from $750.00 to $775.00. Scotiabank currently has a sector outperform rating on the stock. AppLovin traded as high as $391.85 and last traded at $391.5510. Approximately 9,037,691 shares changed hands during mid-day trading, an increase of 28% from the average daily volume of 7,036,557 shares. The stock had previously closed at $366.91.

Several other equities research analysts have also issued reports on the stock. Evercore reiterated a “buy” rating on shares of AppLovin in a research note on Friday, January 30th. Royal Bank Of Canada lifted their target price on AppLovin from $700.00 to $750.00 and gave the company an “outperform” rating in a research report on Thursday, November 6th. Wells Fargo & Company dropped their target price on AppLovin from $735.00 to $543.00 and set an “overweight” rating on the stock in a report on Thursday. Weiss Ratings downgraded AppLovin from a “buy (b-)” rating to a “hold (c+)” rating in a research note on Thursday, January 15th. Finally, Zacks Research upgraded AppLovin from a “hold” rating to a “strong-buy” rating in a research note on Thursday, January 1st. Twenty equities research analysts have rated the stock with a Buy rating, four have issued a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat, the company currently has an average rating of “Moderate Buy” and an average target price of $651.77.

Insider Buying and Selling

In related news, CTO Vasily Shikin sold 14,708 shares of the company’s stock in a transaction on Monday, November 24th. The stock was sold at an average price of $548.45, for a total transaction of $8,066,602.60. Following the completion of the sale, the chief technology officer owned 35,889 shares in the company, valued at approximately $19,683,322.05. This represents a 29.07% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which can be accessed through this link. Also, Director Dawson Alyssa Harvey sold 150 shares of the stock in a transaction on Monday, December 8th. The shares were sold at an average price of $693.32, for a total value of $103,998.00. Following the completion of the sale, the director directly owned 2,829 shares of the company’s stock, valued at $1,961,402.28. The trade was a 5.04% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Over the last quarter, insiders sold 187,786 shares of company stock valued at $100,914,925. Company insiders own 13.66% of the company’s stock.

Key Headlines 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

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently bought and sold shares of the business. Washington Trust Advisors Inc. increased its position in shares of AppLovin by 160.0% during the 4th quarter. Washington Trust Advisors Inc. now owns 39 shares of the company’s stock valued at $27,000 after purchasing an additional 24 shares during the last quarter. Chilton Capital Management LLC bought a new position in AppLovin during the third quarter valued at about $29,000. Board of the Pension Protection Fund purchased a new stake in AppLovin during the fourth quarter worth about $27,000. 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 worth $31,000 after acquiring an additional 38 shares during the period. Finally, Heartwood Wealth Advisors LLC purchased a new position in AppLovin in the third quarter valued at about $33,000. Hedge funds and other institutional investors own 41.85% of the company’s stock.

AppLovin Trading Up 6.7%

The stock’s 50 day simple moving average is $596.51 and its two-hundred day simple moving average is $571.78. The stock has a market capitalization of $132.32 billion, a PE ratio of 40.16, a PEG ratio of 1.28 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.

AppLovin (NASDAQ:APP) last posted its quarterly earnings results on Wednesday, February 11th. The company reported $3.24 EPS for the quarter, topping 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 company had revenue of $1.66 billion for the quarter, compared to analysts’ expectations of $1.61 billion. During the same quarter in the previous year, the firm posted $1.73 EPS. AppLovin’s revenue was up 66.0% on a year-over-year basis. On average, sell-side 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.