AppLovin (NASDAQ:APP) Posts Earnings Results, Beats Estimates By $0.11 EPS

AppLovin (NASDAQ:APP) issued its earnings results on Wednesday. The company reported $2.45 earnings per share for the quarter, beating analysts’ consensus estimates of $2.34 by $0.11, Zacks reports. AppLovin had a return on equity of 252.67% and a net margin of 45.72%. AppLovin updated its Q4 2025 guidance to EPS.

AppLovin Stock Performance

Shares of NASDAQ APP traded up $8.37 during trading hours on Wednesday, reaching $617.05. The stock had a trading volume of 5,761,133 shares, compared to its average volume of 7,171,695. The business’s fifty day moving average is $596.21 and its two-hundred day moving average is $445.26. The company has a debt-to-equity ratio of 3.01, a current ratio of 2.74 and a quick ratio of 2.74. The company has a market cap of $208.72 billion, a price-to-earnings ratio of 87.65, a PEG ratio of 3.43 and a beta of 2.50. AppLovin has a twelve month low of $166.97 and a twelve month high of $745.61.

Analysts Set New Price Targets

Several equities research analysts recently commented on the company. Piper Sandler boosted their price target on AppLovin from $500.00 to $740.00 and gave the company an “overweight” rating in a research note on Friday, September 26th. Weiss Ratings cut AppLovin from a “buy (b-)” rating to a “hold (c+)” rating in a research note on Friday, October 24th. Wells Fargo & Company boosted their price target on AppLovin from $491.00 to $633.00 and gave the company an “overweight” rating in a research note on Tuesday, October 14th. Benchmark boosted their price target on AppLovin from $525.00 to $640.00 and gave the company a “buy” rating in a research note on Monday, September 15th. Finally, BTIG Research upped their target price on AppLovin from $664.00 to $693.00 and gave the stock a “buy” rating in a research report on Friday, October 31st. One investment analyst has rated the stock with a Strong Buy rating, twenty-one have given a Buy rating, five have given a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat, the stock has a consensus rating of “Moderate Buy” and an average price target of $606.39.

Insiders Place Their Bets

In related news, Director Eduardo Vivas sold 125,000 shares of the company’s stock in a transaction on Tuesday, August 12th. The stock was sold at an average price of $466.00, for a total value of $58,250,000.00. Following the completion of the transaction, the director directly owned 7,283,292 shares in the company, valued at approximately $3,394,014,072. This represents a 1.69% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, CEO Arash Adam Foroughi sold 90,000 shares of the stock in a transaction on Thursday, August 21st. The stock was sold at an average price of $421.04, for a total value of $37,893,600.00. Following the transaction, the chief executive officer owned 2,620,054 shares of the company’s stock, valued at $1,103,147,536.16. This represents a 3.32% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders sold a total of 1,156,788 shares of company stock valued at $514,863,333 in the last ninety days. 13.66% of the stock is currently owned by insiders.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently made changes to their positions in the stock. SkyView Investment Advisors LLC bought a new position in shares of AppLovin during the second quarter valued at $254,000. Main Street Financial Solutions LLC bought a new position in shares of AppLovin during the second quarter valued at $254,000. Bison Wealth LLC bought a new position in shares of AppLovin during the fourth quarter valued at $239,000. Visionary Wealth Advisors bought a new position in shares of AppLovin during the second quarter valued at $273,000. Finally, Modern Wealth Management LLC bought a new position in shares of AppLovin during the second quarter valued at $283,000. 41.85% of the stock is owned by institutional investors.

AppLovin Company Profile

AppLovin Corporation engages in building a software-based platform for advertisers to enhance the marketing and monetization of their content in the United States and internationally. It operates through two segments, Software Platform and Apps. The company's software solutions include AppDiscovery, a marketing software solution, which matches advertiser demand with publisher supply through auctions; MAX, an in-app bidding software that optimizes the value of a publisher's advertising inventory by running a real-time competitive auction; Adjust, a measurement and analytics marketing platform that provides marketers with the visibility, insights, and tools needed to grow their apps from early stage to maturity; and Wurl, a connected TV platform, which distributes streaming video for content companies and provides advertising and publishing solutions through its AdPool, ContentDiscovery, and Global FAST Pass products.