AppLovin (NASDAQ:APP) Trading 2.9% Higher – Here’s What Happened

AppLovin Corporation (NASDAQ:APP) traded up 2.9% on Thursday . The stock traded as high as $317.60 and last traded at $312.67. Approximately 7,485,564 shares changed hands during trading, an increase of 29% from the average session volume of 5,787,051 shares. The stock had previously closed at $303.76.

AppLovin News Summary

Here are the key news stories impacting AppLovin this week:

• Positive Sentiment: AppLovin’s third-quarter outlook points to sequential revenue-growth reacceleration while maintaining an approximately 83% margin, even as the company continues investing in AI-computing capacity. AppLovin Q3 Guidance Signals Reacceleration After a Mixed Q2 Print
• Positive Sentiment: Some analysts continue to view the decline as excessive relative to AppLovin’s fundamentals. BTIG retained a Buy rating, while Phillip Securities upgraded the stock to Strong Buy; bullish commentary highlights rapid revenue and profit growth and substantial upside to consensus targets. BTIG AppLovin Price Target
• Positive Sentiment: The company is promoting its advertising platform as a credible alternative for marketers, which could help strengthen adoption and support future growth if execution validates the pitch. AppLovin Wants To Persuade The World That Its Ad Platform Is The Real Deal

Analyst Upgrades and Downgrades

Several brokerages have recently issued reports on APP. Morgan Stanley decreased their price objective on AppLovin from $720.00 to $650.00 and set an “overweight” rating for the company in a research note on Thursday, August 6th. Scotiabank restated a “sector outperform” rating and set a $515.00 target price on shares of AppLovin in a research note on Thursday, August 6th. The Goldman Sachs Group reduced their target price on shares of AppLovin from $585.00 to $465.00 and set a “neutral” rating on the stock in a report on Thursday, August 6th. Deutsche Bank Aktiengesellschaft reiterated a “buy” rating and issued a $660.00 price target on shares of AppLovin in a research note on Thursday, May 7th. Finally, Phillip Securities upgraded shares of AppLovin from a “moderate buy” rating to a “strong-buy” rating in a report on Tuesday. Three equities research analysts have rated the stock with a Strong Buy rating, thirteen have given a Buy rating and eight have given a Hold rating to the company. Based on data from MarketBeat.com, AppLovin has an average rating of “Moderate Buy” and a consensus price target of $565.91.

AppLovin Stock Performance

The company has a market capitalization of $105.04 billion, a price-to-earnings ratio of 24.03, a PEG ratio of 0.59 and a beta of 2.54. The company has a debt-to-equity ratio of 1.11, a current ratio of 4.30 and a quick ratio of 4.30. The stock has a 50 day simple moving average of $457.60 and a two-hundred day simple moving average of $458.54.

AppLovin (NASDAQ:APP) last released its quarterly earnings data on Tuesday, August 4th. The company reported $3.76 earnings per share (EPS) for the quarter, hitting the consensus estimate of $3.76. AppLovin had a return on equity of 193.10% and a net margin of 64.58%.The business had revenue of $1.92 billion during the quarter, compared to analysts’ expectations of $1.94 billion. During the same period in the prior year, the firm posted $2.39 EPS. The business’s quarterly revenue was up 52.8% compared to the same quarter last year. As a group, analysts anticipate that AppLovin Corporation will post 15.57 earnings per share for the current year.

Insider Activity

In related news, CEO Arash Adam Foroughi sold 22,544 shares of the company’s stock in a transaction that occurred on 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 directly owned 2,327,684 shares of the company’s stock, valued at $1,152,157,026.32. This represents a 0.96% 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, CFO Matthew Stumpf sold 9,052 shares of the stock in a transaction that occurred on Thursday, May 28th. The shares were sold at an average price of $600.00, for a total transaction of $5,431,200.00. Following the completion of the transaction, the chief financial officer owned 177,450 shares in the company, valued at $106,470,000. This represents a 4.85% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders have sold 393,000 shares of company stock valued at $197,297,363 over the last 90 days. Insiders own 12.81% of the company’s stock.

Institutional Inflows and Outflows

A number of hedge funds have recently modified their holdings of the stock. Vanguard Group Inc. boosted its stake in AppLovin by 0.7% in the fourth quarter. Vanguard Group Inc. now owns 25,120,575 shares of the company’s stock valued at $16,926,746,000 after acquiring an additional 166,117 shares in the last quarter. State Street Corp increased its position in shares of AppLovin by 0.4% during the fourth quarter. State Street Corp now owns 11,904,843 shares of the company’s stock worth $8,021,721,000 after purchasing an additional 52,377 shares in the last quarter. Geode Capital Management LLC lifted its holdings in shares of AppLovin by 6.7% in the 4th quarter. Geode Capital Management LLC now owns 7,167,003 shares of the company’s stock valued at $4,817,269,000 after purchasing an additional 448,005 shares during the last quarter. Price T Rowe Associates Inc. MD lifted its holdings in shares of AppLovin by 3.6% in the 4th quarter. Price T Rowe Associates Inc. MD now owns 6,089,735 shares of the company’s stock valued at $4,103,386,000 after purchasing an additional 212,349 shares during the last quarter. Finally, Morgan Stanley lifted its holdings in shares of AppLovin by 10.7% in the 4th quarter. Morgan Stanley now owns 5,561,646 shares of the company’s stock valued at $3,747,551,000 after purchasing an additional 538,806 shares during the last quarter. 41.85% of the stock is owned by hedge funds and other institutional investors.

AppLovin Company Profile

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.