Bank of America Has Lowered Expectations for AppLovin (NASDAQ:APP) Stock Price

AppLovin (NASDAQ:APP) had its price target decreased by investment analysts at Bank of America from $705.00 to $430.00 in a research report issued to clients and investors on Thursday, Marketbeat reports. The brokerage presently has a “buy” rating on the stock. Bank of America‘s price target indicates a potential upside of 2.92% from the company’s previous close.

A number of other equities research analysts have also weighed in on the stock. Wedbush reaffirmed an “outperform” rating and set a $640.00 target price on shares of AppLovin in a research note on Thursday, May 7th. BTIG Research reissued a “buy” rating and issued a $640.00 price target on shares of AppLovin in a research note on Thursday, May 7th. Citigroup reaffirmed a “buy” rating on shares of AppLovin in a research report on Monday, June 22nd. The Goldman Sachs Group reduced their target price on AppLovin from $585.00 to $465.00 and set a “neutral” rating on the stock in a report on Thursday. Finally, Benchmark reissued a “buy” rating on shares of AppLovin in a research report on Wednesday, June 10th. Two equities research analysts have rated the stock with a Strong Buy rating, fifteen have issued a Buy rating and seven have given a Hold rating to the stock. Based on data from MarketBeat, the stock currently has a consensus rating of “Moderate Buy” and an average price target of $612.45.

AppLovin Price Performance

Shares of APP stock opened at $417.80 on Thursday. The firm has a market cap of $140.36 billion, a P/E ratio of 35.89, a P/E/G ratio of 0.69 and a beta of 2.54. AppLovin has a fifty-two week low of $359.00 and a fifty-two week high of $745.61. The business’s 50 day moving average price is $484.79 and its 200-day moving average price is $466.38. The company has a debt-to-equity ratio of 1.49, a quick ratio of 3.24 and a current ratio of 3.24.

AppLovin (NASDAQ:APP) last announced its earnings results on Tuesday, August 4th. The company reported $3.76 EPS for the quarter, meeting analysts’ consensus estimates of $3.76. AppLovin had a return on equity of 219.37% and a net margin of 64.29%.The company had revenue of $1.92 billion during the quarter, compared to the consensus estimate of $1.94 billion. During the same quarter in the prior year, the company earned $2.39 earnings per share. The firm’s revenue for the quarter was up 52.8% on a year-over-year basis. On average, equities research analysts anticipate that AppLovin will post 15.93 earnings per share for the current year.

Insider Activity at AppLovin

In other AppLovin news, CFO Matthew Stumpf sold 9,052 shares of the stock in a transaction on Thursday, May 28th. The stock was sold at an average price of $600.00, for a total transaction of $5,431,200.00. Following the sale, the chief financial officer directly owned 177,450 shares in the company, valued at approximately $106,470,000. This trade represents a 4.85% decrease in their position. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, Director Eduardo Vivas sold 163,910 shares of AppLovin stock in a transaction dated Tuesday, June 16th. The stock was sold at an average price of $504.06, for a total value of $82,620,474.60. Following the completion of the sale, the director owned 6,785,087 shares of the company’s stock, valued at $3,420,090,953.22. The trade was a 2.36% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders have sold 393,000 shares of company stock worth $197,297,363 over the last quarter. 12.81% of the stock is currently owned by company insiders.

Institutional Trading of AppLovin

A number of institutional investors have recently made changes to their positions in APP. Vanguard Group Inc. raised its holdings in shares of AppLovin by 0.7% during the fourth quarter. Vanguard Group Inc. now owns 25,120,575 shares of the company’s stock valued at $16,926,746,000 after purchasing an additional 166,117 shares during the last quarter. State Street Corp boosted its holdings in AppLovin by 0.4% in 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 during the last quarter. Geode Capital Management LLC boosted its holdings in AppLovin by 6.7% in the fourth quarter. Geode Capital Management LLC now owns 7,167,003 shares of the company’s stock worth $4,817,269,000 after purchasing an additional 448,005 shares during the last quarter. Price T Rowe Associates Inc. MD grew its position in 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 worth $4,103,386,000 after purchasing an additional 212,349 shares during the period. Finally, Morgan Stanley lifted its holdings in shares of AppLovin by 10.7% during the 4th quarter. Morgan Stanley now owns 5,561,646 shares of the company’s stock valued at $3,747,551,000 after buying an additional 538,806 shares during the period. Hedge funds and other institutional investors own 41.85% of the company’s stock.

More AppLovin News

Here are the key news stories impacting AppLovin this week:

• Positive Sentiment: AppLovin reported adjusted earnings of $3.76 per share, in line with the primary consensus estimate and above the $3.72 Zacks estimate. Revenue increased 52.8% year over year to $1.924 billion, demonstrating continued strong growth. AppLovin Announces Second Quarter 2026 Financial Results
• Positive Sentiment: Management said an SEC investigation involving the company has been closed, removing a regulatory overhang for investors. APP Stock Plunges After Revenue Miss and Soft Guidance
• Neutral Sentiment: The company continues to benefit from the broader AI and application-software investment theme, with some analysts viewing AppLovin as an application-layer AI business capable of converting growth into substantial profits. However, the market’s reaction indicates that future growth expectations are already demanding. Three Stocks That Prove the AI Trade Is Not Over
• Negative Sentiment: Second-quarter revenue came in below Wall Street’s roughly $1.94 billion forecast. The modest top-line miss was particularly disappointing because earnings growth and AppLovin’s elevated valuation had set a very high bar. AppLovin Reports Second-Quarter Revenue Below Estimates
• Negative Sentiment: Third-quarter revenue guidance of $2.055 billion to $2.085 billion, or approximately $2.07 billion at the midpoint, was below the approximately $2.08 billion analyst expectation. The softer outlook fueled concerns that AppLovin’s rapid growth may be moderating. AppLovin Gives Soft Third-Quarter Outlook
• Negative Sentiment: A law firm is investigating potential claims on behalf of AppLovin investors, adding a separate headline risk, although the investigation itself does not establish wrongdoing. Pomerantz Investor Alert

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.