Citigroup Lowers AppLovin (NASDAQ:APP) Price Target to $650.00

AppLovin (NASDAQ:APP) had its target price cut by research analysts at Citigroup from $710.00 to $650.00 in a report issued on Friday,Benzinga reports. The brokerage presently has a “buy” rating on the stock. Citigroup’s price objective indicates a potential upside of 87.43% from the stock’s current price.

Several other equities analysts also recently weighed in on the stock. Wells Fargo & Company reaffirmed an “equal weight” rating and set a $357.00 price target (down from $575.00) on shares of AppLovin in a report on Thursday. Royal Bank Of Canada lowered their target price on shares of AppLovin from $700.00 to $575.00 and set an “outperform” rating on the stock in a research note on Thursday. Morgan Stanley dropped their target price on shares of AppLovin from $720.00 to $650.00 and set an “overweight” rating for the company in a report on Thursday. Benchmark cut their target price on AppLovin from $775.00 to $500.00 and set a “buy” rating for the company in a research report on Thursday. Finally, Argus initiated coverage on shares of AppLovin in a research note on Tuesday, April 14th. They set a “buy” rating and a $520.00 target price for the company. Two research analysts have rated the stock with a Strong Buy rating, fifteen have issued a Buy rating and seven have given a Hold rating to the company’s stock. According to MarketBeat, the company presently has an average rating of “Moderate Buy” and a consensus target price of $574.82.

AppLovin Stock Performance

Shares of NASDAQ:APP traded up $11.13 during midday trading on Friday, hitting $346.80. The company had a trading volume of 7,679,111 shares, compared to its average volume of 5,733,596. AppLovin has a 12-month low of $332.19 and a 12-month high of $745.61. The company has a fifty day moving average of $479.50 and a two-hundred day moving average of $464.74. The company has a market cap of $116.50 billion, a price-to-earnings ratio of 26.66, a PEG ratio of 0.68 and a beta of 2.54. The company has a debt-to-equity ratio of 1.49, a current ratio of 3.24 and a quick ratio of 3.24.

AppLovin (NASDAQ:APP) last released its earnings results on Tuesday, August 4th. The company reported $3.76 earnings per share for the quarter, meeting the consensus estimate of $3.76. The company had revenue of $1.92 billion for the quarter, compared to the consensus estimate of $1.94 billion. AppLovin had a return on equity of 221.53% and a net margin of 64.58%.AppLovin’s quarterly revenue was up 52.8% compared to the same quarter last year. During the same period in the previous year, the business earned $2.39 earnings per share. On average, equities research analysts expect that AppLovin will post 15.93 EPS for the current fiscal year.

Insider Activity

In related news, CFO Matthew Stumpf sold 9,052 shares of the stock in a transaction dated Thursday, May 28th. The shares were sold at an average price of $600.00, for a total value of $5,431,200.00. Following the completion of the transaction, the chief financial officer owned 177,450 shares of the company’s stock, valued at approximately $106,470,000. This trade represents a 4.85% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, CEO Arash Adam Foroughi sold 22,544 shares of AppLovin stock in a transaction dated Friday, June 12th. The stock was sold at an average price of $494.98, for a total value of $11,158,829.12. Following the completion of the transaction, the chief executive officer owned 2,327,684 shares of the company’s stock, valued at approximately $1,152,157,026.32. This represents a 0.96% decrease in their position. The disclosure for this sale is available in the SEC filing. In the last three months, insiders sold 393,000 shares of company stock worth $197,297,363. 12.81% of the stock is owned by insiders.

Institutional Trading of AppLovin

Hedge funds and other institutional investors have recently bought and sold shares of the stock. State Street Corp lifted its position in shares of AppLovin by 111.1% in the 3rd quarter. State Street Corp now owns 11,852,466 shares of the company’s stock worth $8,516,471,000 after purchasing an additional 6,237,051 shares during the period. Corient Private Wealth LLC boosted its holdings in shares of AppLovin by 3,118.6% in the 4th quarter. Corient Private Wealth LLC now owns 4,194,071 shares of the company’s stock valued at $2,826,049,000 after buying an additional 4,063,763 shares in the last quarter. Norges Bank purchased a new position in shares of AppLovin in the 4th quarter worth approximately $2,040,321,000. Bank of New York Mellon Corp bought a new position in shares of AppLovin during the 2nd quarter worth approximately $730,015,000. Finally, Northern Trust Corp lifted its position in AppLovin by 46.8% during the third quarter. Northern Trust Corp now owns 2,374,460 shares of the company’s stock valued at $1,706,144,000 after acquiring an additional 756,660 shares during the last quarter. Hedge funds and other institutional investors own 41.85% of the company’s stock.

More AppLovin News

Here are the key news stories impacting AppLovin this week:

• Positive Sentiment: AppLovin reported second-quarter revenue of $1.924 billion, up 52.8% year over year, while earnings of $3.76 per share matched consensus estimates and exceeded some estimates. The results marked the company’s fourth consecutive earnings beat and support the bullish view that its AI-driven advertising platform is still expanding rapidly. AppLovin Grows 53% and Beats on Profit
• Positive Sentiment: Management expects third-quarter revenue of approximately $2.055 billion to $2.085 billion and cited continued momentum in consumer-focused advertising and broader vertical expansion. Analysts at Morgan Stanley, RBC, BTIG, Needham and Bank of America maintained positive ratings despite lowering their price targets, implying substantial upside from recent levels. AppLovin Q2 Earnings Call Highlights
• Neutral Sentiment: AppLovin attributed the revenue shortfall and slower-than-expected AI model improvements largely to timing issues, while saying live performance gains and consumer scaling should support stronger growth in the third quarter. Investors must determine whether the weakness is temporary or signals a more competitive advertising market. APP Q2 Earnings Call Highlights
• Negative Sentiment: Revenue came in below Wall Street’s roughly $1.94 billion forecast, and the third-quarter outlook was slightly below expectations. The miss, combined with concerns about AI execution and heavier AI spending, triggered a broad wave of price-target reductions and caused the stock’s initial decline. AppLovin Stock Plummets on Weaker Revenue Outlook
• Negative Sentiment: Pomerantz LLP announced an investigation into potential investor claims involving AppLovin. The investigation is preliminary and does not establish wrongdoing, but it adds a legal headline risk after the earnings disappointment. Pomerantz Investor Alert

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.