AppLovin (NASDAQ:APP) Shares Down 3.5% – Time to Sell?

AppLovin Corporation (NASDAQ:APP) shares traded down 3.5% on Tuesday. The company traded as low as $383.31 and last traded at $395.51. Approximately 5,430,173 shares traded hands during trading, a decline of 4% from the average session volume of 5,629,000 shares. The stock had previously closed at $410.00.

More AppLovin News

Here are the key news stories impacting AppLovin this week:

• Positive Sentiment: AppLovin reported third-quarter revenue of $2.18 billion, up 55.5% year over year, and earnings per share of $4.30, ahead of analyst expectations. Its fourth-quarter outlook was also described as stronger than consensus; e-commerce advertiser spending grew at a triple-digit rate. Article: AppLovin: 3 Key Takeaways for Long-Term Investors
• Positive Sentiment: An analyst commentary upgraded APP to Buy, citing reaccelerating growth, model-driven advertiser spending, and room for both AppLovin and Unity to expand. Article: AppLovin Vs. Unity: Room For Two, But I Prefer Unity
• Neutral Sentiment: After a reported 51% surge following its earnings release, coverage notes that elevated expectations and execution risks could limit further gains, despite the improved results and outlook. Article: APP Stock Surges 51% After Q3 Earnings: Is it Still a Buy?
• Negative Sentiment: Several law firms are publicizing a securities class action with a November 16 lead-plaintiff deadline. The complaint alleges AppLovin overstated the consistency of AI model improvements and the readiness or adoption of AI advertising tools; one notice also alleges executives sold more than $109.1 million in shares. These are allegations, not established findings, but the litigation could add uncertainty. Article: APP Shareholder Alert

Analysts Set New Price Targets

A number of analysts have commented on APP shares. Daiwa Securities Group cut their price target on shares of AppLovin from $569.00 to $345.00 and set an “outperform” rating for the company in a research note on Wednesday, August 19th. Royal Bank Of Canada boosted their price objective on shares of AppLovin from $500.00 to $520.00 and gave the stock an “outperform” rating in a research note on Thursday, November 5th. Needham & Company LLC reaffirmed a “buy” rating and issued a $475.00 target price on shares of AppLovin in a report on Thursday, November 5th. Phillip Securities upgraded shares of AppLovin from a “moderate buy” rating to a “strong-buy” rating and cut their target price for the company from $635.00 to $610.00 in a research note on Tuesday, August 11th. Finally, Benchmark reduced their price target on AppLovin from $500.00 to $440.00 and set a “buy” rating for the company in a report on Monday, August 17th. Three equities research analysts have rated the stock with a Strong Buy rating, seventeen have assigned a Buy rating and eight have given a Hold rating to the company’s stock. According to data from MarketBeat.com, the company has a consensus rating of “Moderate Buy” and an average price target of $497.93.

AppLovin Stock Down 3.5%

The firm has a fifty day simple moving average of $295.20 and a 200-day simple moving average of $409.29. The firm has a market cap of $132.36 billion, a price-to-earnings ratio of 26.62, a P/E/G ratio of 0.60 and a beta of 2.51. The company has a debt-to-equity ratio of 1.11, a quick ratio of 4.30 and a current ratio of 4.30.

AppLovin (NASDAQ:APP) last released its quarterly earnings data on Wednesday, November 4th. The company reported $4.30 EPS for the quarter, topping analysts’ consensus estimates of $4.03 by $0.27. AppLovin had a net margin of 65.89% and a return on equity of 196.31%. The firm had revenue of $2.18 billion during the quarter, compared to analysts’ expectations of $2.07 billion. During the same period in the previous year, the business posted $2.45 earnings per share. The company’s revenue for the quarter was up 55.5% compared to the same quarter last year. As a group, sell-side analysts expect that AppLovin Corporation will post 16.18 EPS for the current year.

Institutional Trading of AppLovin

Hedge funds and other institutional investors have recently modified their holdings of the stock. State Street Corp grew its holdings in AppLovin by 28.3% in the 2nd quarter. State Street Corp now owns 15,095,667 shares of the company’s stock valued at $7,777,741,000 after buying an additional 3,328,338 shares in the last quarter. Bank of New York Mellon Corp bought a new position in AppLovin during the 2nd quarter worth $730,015,000. Aberdeen Group plc lifted its holdings in shares of AppLovin by 2,693.5% during the third quarter. Aberdeen Group plc now owns 875,345 shares of the company’s stock worth $254,226,000 after buying an additional 844,010 shares in the last quarter. Fundsmith LLP acquired a new stake in shares of AppLovin during the second quarter worth $358,893,000. Finally, The Manufacturers Life Insurance Company lifted its holdings in shares of AppLovin by 409.6% during the second quarter. The Manufacturers Life Insurance Company now owns 776,097 shares of the company’s stock worth $399,868,000 after buying an additional 623,815 shares in the last quarter. Institutional investors own 41.85% of the company’s stock.

AppLovin Company Profile

AppLovin is a technology company that provides software to help mobile app developers and advertisers grow their businesses. Its platform connects advertisers seeking users with app publishers looking to monetize their audiences, using data and machine-learning tools to support advertising and user acquisition. The company’s products include AXON, its advertising optimization engine; AppDiscovery, which helps advertisers find and acquire users; and MAX, a platform for managing in-app advertising.