AppLovin (NASDAQ:APP) Trading Up 5.5% – Still a Buy?

AppLovin Corporation (NASDAQ:APP) was up 5.5% on Thursday . The stock traded as high as $445.90 and last traded at $444.93. Approximately 5,835,874 shares were traded during mid-day trading, a decline of 15% from the average daily volume of 6,871,273 shares. The stock had previously closed at $421.63.

Key Stories Impacting AppLovin

Here are the key news stories impacting AppLovin this week:

• Positive Sentiment: Market commentators argue AppLovin’s AI-driven ad engine and proprietary data create a durable moat, framing the recent selloff as narrative panic rather than fundamental damage — a key reason momentum buyers stepped in.
• Positive Sentiment: Some analysts/upgrades see a buying opportunity after the correction: a recent upgrade from Hold to Buy cites strong Q4 revenue, margin expansion and a reset valuation that supports upside. AppLovin: Time To Load Up Again (Rating Upgrade)
• Positive Sentiment: Analyst and trade publications comparing AppLovin to other AI‑exposed names highlight APP’s superior Q4 growth (66% revenue growth; large EBITDA improvement) and argue it looks more attractively valued versus some peers — supporting constructive sentiment. ARM vs. APP: Which AI-Exposed Tech Stock to Consider Right Now?
• Neutral Sentiment: Sector technicals: Raymond James sees a tradeable bounce across software names as the group stabilizes at technical support — this broader software relief trade helped APP join a rally. Tradeable bounce is developing in software stocks
• Neutral Sentiment: News roundups and market stories (MSN, finance outlets) amplified these bullish takes and the stock’s momentum, which can attract short‑term flows from momentum traders. AppLovin Stock Surges Wednesday: What’s Driving The Action?
• Neutral Sentiment: Reported short‑interest data in the feed is inconsistent (showing zero), so there’s no clear short‑squeeze signal — treat that data point as inconclusive for today’s move.
• Negative Sentiment: Some analysts trimmed price targets and flagged a valuation de‑rating after the earnings call; while many maintained Buy ratings, target cuts (e.g., BofA reducing its target) remind investors that consensus valuation and growth assumptions are being re‑priced. Analysts Remain Bullish on AppLovin Corporation (APP) Despite Target Cuts
• Negative Sentiment: Macro skepticism about “AI hype” and concerns over stretched multiples have driven a >30% correction since the December peak; these remain risks that could cap rallies if sentiment reverses. Is AppLovin Still An AI Winner After The Recent Selloff?

Analyst Ratings Changes

A number of research analysts have recently weighed in on APP shares. UBS Group set a $740.00 target price on AppLovin in a report on Thursday, February 12th. Jefferies Financial Group dropped their price objective on AppLovin from $860.00 to $700.00 and set a “buy” rating on the stock in a research note on Thursday, February 12th. Weiss Ratings raised shares of AppLovin from a “hold (c+)” rating to a “buy (b-)” rating in a report on Friday, February 20th. Citigroup reduced their target price on shares of AppLovin from $820.00 to $710.00 and set a “buy” rating for the company in a research note on Thursday, February 12th. Finally, Benchmark reissued a “buy” rating on shares of AppLovin in a research report on Monday, February 2nd. Twenty-one analysts have rated the stock with a Buy rating, three have issued a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat.com, the stock has an average rating of “Moderate Buy” and a consensus target price of $651.77.

AppLovin Price Performance

The firm has a market cap of $150.36 billion, a PE ratio of 45.63, a P/E/G ratio of 0.81 and a beta of 2.49. The company has a debt-to-equity ratio of 1.65, a current ratio of 3.32 and a quick ratio of 3.32. The business’s fifty day moving average is $550.18 and its 200-day moving average is $571.84.

AppLovin (NASDAQ:APP) last released its earnings results on Wednesday, February 11th. The company reported $3.24 earnings per share for the quarter, beating analysts’ consensus estimates of $2.89 by $0.35. The firm had revenue of $1.66 billion during the quarter, compared to the consensus estimate of $1.61 billion. AppLovin had a net margin of 57.42% and a return on equity of 245.64%. The company’s revenue was up 66.0% compared to the same quarter last year. During the same period in the prior year, the firm earned $1.73 EPS. On average, research analysts predict that AppLovin Corporation will post 6.87 earnings per share for the current fiscal year.

Insiders Place Their Bets

In other news, insider Victoria Valenzuela sold 7,609 shares of the stock in a transaction on Thursday, December 18th. The stock was sold at an average price of $657.13, for a total transaction of $5,000,102.17. Following the completion of the transaction, the insider owned 277,110 shares in the company, valued at approximately $182,097,294.30. This represents a 2.67% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, Director Dawson Alyssa Harvey sold 150 shares of AppLovin stock in a transaction dated Monday, December 8th. The stock was sold at an average price of $693.32, for a total value of $103,998.00. Following the completion of the sale, the director directly owned 2,829 shares of the company’s stock, valued at approximately $1,961,402.28. This trade represents a 5.04% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Company insiders own 13.66% of the company’s stock.

Hedge Funds Weigh In On AppLovin

Several large investors have recently modified their holdings of APP. Washington Trust Advisors Inc. boosted its holdings in shares of AppLovin by 160.0% in the fourth quarter. Washington Trust Advisors Inc. now owns 39 shares of the company’s stock worth $27,000 after acquiring an additional 24 shares during the period. Chilton Capital Management LLC purchased a new stake in AppLovin during the 3rd quarter worth about $29,000. Board of the Pension Protection Fund bought a new position in AppLovin in the 4th quarter worth about $27,000. Mcguire Capital Advisors Inc. purchased a new position in AppLovin during the 4th quarter valued at about $27,000. Finally, Activest Wealth Management increased its position in shares of AppLovin by 760.0% during the third quarter. Activest Wealth Management now owns 43 shares of the company’s stock valued at $31,000 after buying an additional 38 shares during the period. Hedge funds and other institutional investors own 41.85% of the company’s stock.

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.