Wedbush Issues Optimistic Outlook for AppLovin Earnings

AppLovin Corporation (NASDAQ:APP) – Equities researchers at Wedbush increased their Q4 2025 earnings estimates for AppLovin in a research note issued to investors on Monday, October 6th. Wedbush analyst A. Reese now expects that the company will earn $2.89 per share for the quarter, up from their previous estimate of $2.72. Wedbush currently has a “Outperform” rating and a $745.00 price target on the stock. The consensus estimate for AppLovin’s current full-year earnings is $6.87 per share. Wedbush also issued estimates for AppLovin’s Q1 2026 earnings at $3.01 EPS, Q2 2026 earnings at $3.15 EPS and Q3 2026 earnings at $3.41 EPS.

AppLovin (NASDAQ:APP) last posted its quarterly earnings data on Wednesday, August 6th. The company reported $2.26 earnings per share for the quarter, topping the consensus estimate of $2.05 by $0.21. The company had revenue of $1.26 billion for the quarter, compared to analysts’ expectations of $1.37 billion. AppLovin had a net margin of 45.72% and a return on equity of 252.67%. AppLovin’s revenue for the quarter was up 77.1% compared to the same quarter last year. During the same period in the prior year, the business earned $0.89 earnings per share.

Several other research analysts have also recently weighed in on APP. 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 research report on Monday, September 29th. Weiss Ratings reiterated a “buy (b-)” rating on shares of AppLovin in a research report on Saturday, September 27th. Bank of America increased their price target on shares of AppLovin from $580.00 to $860.00 and gave the company a “buy” rating in a research report on Wednesday, October 1st. Citigroup increased their price target on shares of AppLovin from $600.00 to $850.00 and gave the company a “buy” rating in a research report on Wednesday, October 1st. Finally, Oppenheimer increased their price target on shares of AppLovin from $500.00 to $740.00 and gave the company an “outperform” rating in a research report on Tuesday, September 23rd. Two equities research analysts have rated the stock with a Strong Buy rating, twenty have issued a Buy rating, three have issued a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat, AppLovin has an average rating of “Moderate Buy” and an average price target of $579.81.

AppLovin Stock Down 14.0%

APP stock opened at $587.00 on Tuesday. The company has a current ratio of 2.74, a quick ratio of 2.74 and a debt-to-equity ratio of 3.01. The company’s 50 day moving average is $518.90 and its 200 day moving average is $393.96. The stock has a market cap of $198.55 billion, a price-to-earnings ratio of 83.38, a price-to-earnings-growth ratio of 3.74 and a beta of 2.53. AppLovin has a 1-year low of $137.20 and a 1-year high of $745.61.

Institutional Trading of AppLovin

Institutional investors and hedge funds have recently added to or reduced their stakes in the business. Atala Financial Inc purchased a new position in AppLovin during the first quarter valued at $26,000. Hilltop National Bank purchased a new position in AppLovin during the second quarter valued at $26,000. LFA Lugano Financial Advisors SA purchased a new position in AppLovin during the second quarter valued at $26,000. Alpine Bank Wealth Management purchased a new position in AppLovin during the first quarter valued at $27,000. Finally, ORG Wealth Partners LLC purchased a new position in AppLovin during the first quarter valued at $29,000. Hedge funds and other institutional investors own 41.85% of the company’s stock.

Insiders Place Their Bets

In related news, CEO Arash Adam Foroughi sold 26,200 shares of the firm’s stock in a transaction on Friday, August 22nd. The stock was sold at an average price of $440.23, for a total value of $11,534,026.00. Following the completion of the sale, the chief executive officer owned 2,590,054 shares of the company’s stock, valued at $1,140,219,472.42. This trade represents a 1.00% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available through this link. Also, Director Dawson Alyssa Harvey sold 350 shares of the firm’s stock in a transaction on Friday, September 5th. The stock was sold at an average price of $487.97, for a total value of $170,789.50. Following the completion of the sale, the director directly owned 3,150 shares of the company’s stock, valued at $1,537,105.50. The trade was a 10.00% decrease in their position. The disclosure for this sale can be found here. Over the last three months, insiders sold 1,156,788 shares of company stock worth $514,863,333. Insiders own 13.66% of the company’s stock.

About AppLovin

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.