Key Points
- Insider sale: Victoria Valenzuela sold 7,609 shares on Dec. 18 at an average of $657.13 for $5,000,102.17, reducing her holding by 2.67% to 277,110 shares (≈$182.1M).
- Strong quarterly results: AppLovin beat Q3 estimates with $2.45 EPS and $1.41B revenue (up 68.2% YoY), posting a 51.3% net margin and prompting analyst price-target upgrades and bullish coverage.
- Valuation and risks: The stock trades at a high PE (~87.6) and faces legal/short-seller overhang and critical commentary despite heavy institutional accumulation and a "Moderate Buy" consensus (avg target $695.90).
AppLovin Corporation (NASDAQ:APP - Get Free Report) insider Victoria Valenzuela sold 7,609 shares of the company's stock in a transaction dated Thursday, December 18th. The shares were sold at an average price of $657.13, for a total transaction 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 document filed with the SEC, which is available through this link.
AppLovin Price Performance
Shares of APP stock opened at $721.37 on Friday. 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's 50-day moving average is $617.10 and its two-hundred day moving average is $511.23. AppLovin Corporation has a 12 month low of $200.50 and a 12 month high of $745.61. The company has a market capitalization of $243.79 billion, a PE ratio of 87.55, a price-to-earnings-growth ratio of 3.73 and a beta of 2.51.
AppLovin (NASDAQ:APP - Get Free Report) last posted its quarterly earnings results on Wednesday, November 5th. The company reported $2.45 earnings per share for the quarter, beating the consensus estimate of $2.34 by $0.11. The business had revenue of $1.41 billion during the quarter, compared to analysts' expectations of $1.34 billion. AppLovin had a net margin of 51.27% and a return on equity of 258.49%. The business's revenue for the quarter was up 68.2% on a year-over-year basis. During the same quarter in the prior year, the company posted $1.29 EPS. Analysts predict that AppLovin Corporation will post 6.87 earnings per share for the current year.
Hedge Funds Weigh In On AppLovin
Institutional investors have recently modified their holdings of the business. Vanguard Group Inc. boosted its holdings in AppLovin by 39.4% in the third quarter. Vanguard Group Inc. now owns 24,954,458 shares of the company's stock valued at $17,930,776,000 after purchasing an additional 7,051,663 shares during the period. State Street Corp increased its holdings in AppLovin by 111.1% during 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. Norges Bank acquired a new stake in AppLovin in the 2nd quarter valued at about $951,541,000. Rakuten Investment Management Inc. purchased a new position in shares of AppLovin in the 3rd quarter valued at about $1,456,108,000. Finally, Price T Rowe Associates Inc. MD boosted its stake in shares of AppLovin by 36.7% in the 1st quarter. Price T Rowe Associates Inc. MD now owns 6,588,483 shares of the company's stock valued at $1,745,752,000 after buying an additional 1,769,400 shares during the period. Institutional investors and hedge funds own 41.85% of the company's stock.
Analyst Ratings Changes
A number of analysts recently issued reports on the company. Royal Bank Of Canada raised their price objective on AppLovin from $700.00 to $750.00 and gave the stock an "outperform" rating in a research report on Thursday, November 6th. BTIG Research reiterated a "buy" rating and set a $771.00 price target on shares of AppLovin in a research report on Wednesday. Morgan Stanley upped their price objective on shares of AppLovin from $480.00 to $750.00 and gave the stock an "overweight" rating in a report on Monday, September 29th. Zacks Research downgraded shares of AppLovin from a "strong-buy" rating to a "hold" rating in a report on Monday, October 6th. Finally, JPMorgan Chase & Co. boosted their target price on AppLovin from $425.00 to $650.00 and gave the company a "neutral" rating in a research report on Thursday, November 6th. Nineteen analysts have rated the stock with a Buy rating, four have assigned a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat.com, AppLovin currently has a consensus rating of "Moderate Buy" and an average price target of $695.90.
Check Out Our Latest Research Report on AppLovin
Key AppLovin News
Here are the key news stories impacting AppLovin this week:
- Positive Sentiment: Analysts and margin commentary — Q3 margin strength is being highlighted as a driver of accelerating profitability and operating leverage, supporting higher earnings expectations and reinforcing the bull case. AppLovin's Margin Engine Fuels its Accelerating Momentum
- Positive Sentiment: Bullish coverage and "case against the shorts" narrative — MarketBeat and other outlets argue fundamentals, rising analyst targets and heavy short interest could produce continued upside or a short squeeze if results keep coming in strong. Don’t Bet Against AppLovin: The Case Against the Shorts
- Positive Sentiment: Price-target upgrades and broker notes — Recent upgrades/raised targets (including Benchmark/Wedbush commentary about AppLovin's ad leadership) add momentum and give traders a reason to buy into the narrative. AppLovin Seen as Dominant in Mobile Ads as Wedbush Highlights Unity's Turnaround
- Neutral Sentiment: Insider sale disclosed — An executive sold ~7,609 shares at ~$657 on Dec 18 (2.67% reduction in her holding). The size is material in $ terms but not a major position shift; investors often view routine insider sales as neutral unless part of a pattern. SEC Filing — Insider Sale
- Neutral Sentiment: Options market interest — Elevated options activity suggests institutional players are positioning for further movement, but flow can indicate both speculative and hedging behavior. AppLovin's Options: A Look at What the Big Money is Thinking
- Negative Sentiment: High valuation and public criticism — Prominent commentators (e.g., Jim Cramer) have flagged APP's rich multiple and suggested trimming exposure after a big run, which can pressure sentiment among retail and tactical traders. Jim Cramer on AppLovin: “I’m Not Lovin’ as Much”
- Negative Sentiment: Legal and short-seller overhang — Recent reporting and price‑target downdrafts earlier in the year tied to a class‑action suit and short‑seller reports remain a tail‑risk; those issues have driven past volatility and could produce downside if new negative news emerges. AppLovin Price Prediction and Forecast
AppLovin Company Profile
(
Get Free Report)
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.
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