AppLovin (NASDAQ:APP) Releases Earnings Results, Beats Expectations By $0.35 EPS

AppLovin (NASDAQ:APP) posted its quarterly earnings results on Wednesday. The company reported $3.24 EPS for the quarter, beating the consensus estimate of $2.89 by $0.35, Zacks reports. AppLovin had a return on equity of 258.49% and a net margin of 51.27%.The firm had revenue of $1.66 billion during the quarter, compared to analysts’ expectations of $1.61 billion.

AppLovin Price Performance

Shares of AppLovin stock traded down $16.11 during midday trading on Wednesday, hitting $456.81. 7,420,318 shares of the company were exchanged, compared to its average volume of 6,384,857. The firm has a market cap of $154.38 billion, a P/E ratio of 55.44, a PEG ratio of 1.52 and a beta of 2.49. The company has a debt-to-equity ratio of 2.38, a current ratio of 3.25 and a quick ratio of 3.25. The firm has a 50 day simple moving average of $612.96 and a 200-day simple moving average of $572.41. AppLovin has a 52 week low of $200.50 and a 52 week high of $745.61.

Insider Activity at AppLovin

In other news, insider Victoria Valenzuela sold 7,609 shares of the company’s stock in a transaction dated Thursday, December 18th. The stock was sold at an average price of $657.13, for a total value of $5,000,102.17. Following the completion of 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 position. The sale was disclosed in a legal filing with the SEC, which is available through this hyperlink. Also, CEO Arash Adam Foroughi sold 30,888 shares of the business’s stock in a transaction on 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 directly owned 2,553,161 shares in the company, valued at $1,328,384,136.69. This represents a 1.20% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders have sold a total of 187,786 shares of company stock worth $100,914,925 over the last 90 days. Insiders own 13.66% of the company’s stock.

Hedge Funds Weigh In On AppLovin

Several institutional investors and hedge funds have recently added to or reduced their stakes in the stock. Rehmann Capital Advisory Group boosted its stake in shares of AppLovin by 2.2% in the 3rd quarter. Rehmann Capital Advisory Group now owns 1,115 shares of the company’s stock valued at $828,000 after purchasing an additional 24 shares during the last quarter. Geneos Wealth Management Inc. boosted its position in AppLovin by 0.8% during the second quarter. Geneos Wealth Management Inc. now owns 4,431 shares of the company’s stock worth $1,551,000 after purchasing an additional 33 shares during the period. Strive Asset Management LLC purchased a new stake in AppLovin during the 3rd quarter worth about $61,000. Williamson Legacy Group LLC boosted its holdings in AppLovin by 2.3% in the 3rd quarter. Williamson Legacy Group LLC now owns 4,660 shares of the company’s stock valued at $3,348,000 after purchasing an additional 106 shares during the period. Finally, Zacks Investment Management increased its position in shares of AppLovin by 0.8% in the third quarter. Zacks Investment Management now owns 13,386 shares of the company’s stock worth $9,619,000 after purchasing an additional 106 shares during the last quarter. Institutional investors own 41.85% of the company’s stock.

Key AppLovin News

Here are the key news stories impacting AppLovin this week:

• Positive Sentiment: Short-seller retraction lifted sentiment — CapitalWatch apologized and retracted money?laundering claims tied to a shareholder, triggering a big intraday jump and putting APP among S&P leaders as investors stepped back into the stock. Article Title
• Positive Sentiment: Strong earnings outlook ahead of results — previews show analysts expect sizable Q4 earnings growth (~78%) with e-commerce and gaming performance key to the print, supporting upside into the report. Article Title
• Positive Sentiment: Bullish technical/idea flow — traders and outlets are highlighting a breakout/setup around the $466 level and thematic buy-the-dip arguments citing AI, e-commerce, and product rollouts (Axon 2.0) that could accelerate revenue/ROAS improvements. Article Title
• Neutral Sentiment: Short-interest data is noisy/meaningless in recent print — the published figures show 0 shares/NaN changes and a 0.0 day ratio, so short-interest isn’t a clear signal right now and shouldn’t be overinterpreted.
• Neutral Sentiment: Industry positioning — APP is being cited in lists of software names that may be resilient to AI disruption, which is a thematic plus but not an immediate price driver. Article Title
• Negative Sentiment: Sentiment and valuation caution persists — high expectations and commentary from personalities like Jim Cramer (“not so magical now”) underscore that some investors remain skeptical; APP still trades at a premium multiple, leaving it sensitive to any softness in the upcoming earnings print. Article Title

Wall Street Analysts Forecast Growth

A number of equities analysts recently commented on APP shares. Wells Fargo & Company boosted their target price on shares of AppLovin from $721.00 to $735.00 and gave the stock an “overweight” rating in a research note on Thursday, January 8th. Morgan Stanley set a $800.00 price objective on shares of AppLovin and gave the stock an “overweight” rating in a report on Wednesday, February 4th. Deutsche Bank Aktiengesellschaft set a $705.00 target price on AppLovin and gave the company a “buy” rating in a report on Wednesday, October 22nd. Wedbush reiterated an “outperform” rating and set a $465.00 price objective on shares of AppLovin in a report on Thursday, February 5th. Finally, Needham & Company LLC upgraded AppLovin from a “hold” rating to a “buy” rating and set a $700.00 price target for the company in a report on Monday, January 26th. One research analyst has rated the stock with a Strong Buy rating, twenty have assigned a Buy rating, three have given a Hold rating and one has assigned a Sell rating to the company. Based on data from MarketBeat.com, the company currently has an average rating of “Moderate Buy” and an average price target of $686.05.

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.