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

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

AppLovin Stock Performance

APP stock traded up $8.37 during trading on Wednesday, hitting $617.05. 5,761,133 shares of the company’s stock traded hands, compared to its average volume of 7,171,695. The company has a quick ratio of 2.74, a current ratio of 2.74 and a debt-to-equity ratio of 3.01. AppLovin has a 52 week low of $166.97 and a 52 week high of $745.61. The stock has a fifty day moving average price of $596.21 and a two-hundred day moving average price of $445.26. The stock has a market capitalization of $208.72 billion, a price-to-earnings ratio of 87.65, a price-to-earnings-growth ratio of 3.43 and a beta of 2.50.

Analyst Ratings Changes

A number of brokerages have commented on APP. Piper Sandler upped their price objective on shares of AppLovin from $500.00 to $740.00 and gave the stock an “overweight” rating in a research report on Friday, September 26th. Weiss Ratings cut shares of AppLovin from a “buy (b-)” rating to a “hold (c+)” rating in a research note on Friday, October 24th. Wells Fargo & Company raised their target price on shares of AppLovin from $491.00 to $633.00 and gave the stock an “overweight” rating in a research report on Tuesday, October 14th. Needham & Company LLC reissued a “hold” rating on shares of AppLovin in a research report on Tuesday, August 26th. Finally, Morgan Stanley raised their target price on shares of AppLovin from $480.00 to $750.00 and gave the stock an “overweight” rating in a research report on Monday, September 29th. One analyst has rated the stock with a Strong Buy rating, twenty-one have given a Buy rating, five have assigned a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat.com, AppLovin currently has a consensus rating of “Moderate Buy” and an average price target of $606.39.

Insider Activity

In other AppLovin news, insider Victoria Valenzuela sold 35,000 shares of the business’s stock in a transaction on Thursday, September 4th. The shares were sold at an average price of $502.23, for a total transaction of $17,578,050.00. Following the completion of the sale, the insider owned 269,955 shares in the company, valued at $135,579,499.65. The trade was a 11.48% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, Director Dawson Alyssa Harvey sold 350 shares of the business’s stock in a transaction on Friday, September 5th. The shares were sold at an average price of $487.97, for a total transaction of $170,789.50. Following the sale, the director owned 3,150 shares of the company’s stock, valued at approximately $1,537,105.50. The trade was a 10.00% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders have sold 1,156,788 shares of company stock valued at $514,863,333 over the last quarter. 13.66% of the stock is owned by company insiders.

Hedge Funds Weigh In On AppLovin

Several hedge funds and other institutional investors have recently modified their holdings of the company. Revolve Wealth Partners LLC acquired a new stake in AppLovin in the 4th quarter valued at about $294,000. Bison Wealth LLC acquired a new stake in AppLovin during the 4th quarter worth about $239,000. Benjamin Edwards Inc. raised its holdings in AppLovin by 7.1% during the 2nd quarter. Benjamin Edwards Inc. now owns 3,728 shares of the company’s stock worth $1,305,000 after buying an additional 248 shares during the period. Florida Financial Advisors LLC raised its holdings in AppLovin by 40.9% during the 2nd quarter. Florida Financial Advisors LLC now owns 3,671 shares of the company’s stock worth $1,285,000 after buying an additional 1,065 shares during the period. Finally, Great Valley Advisor Group Inc. raised its holdings in AppLovin by 14.6% during the 2nd quarter. Great Valley Advisor Group Inc. now owns 3,649 shares of the company’s stock worth $1,277,000 after buying an additional 465 shares during the period. Institutional investors and hedge funds own 41.85% of the company’s stock.

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.