AppLovin (NASDAQ:APP) Hits New 1-Year Low – Time to Sell?

23 Oct 2026, 11:01 by Doug Wharley · The Cerbat Gem

AppLovin Corporation (NASDAQ:APP – Get Free Report) hit a new 52-week low on Friday. The company traded as low as $258.32 and last traded at $262.7870, with a volume of 174,297 shares changing hands. The stock had previously closed at $264.28.

AppLovin News Roundup

Here are the key news stories impacting AppLovin this week:

Positive Sentiment: An analyst commentary upgraded AppLovin, arguing that the stock has fallen too far and that its AI-driven advertising platform, rapid growth, and high profitability may not be fully reflected in its valuation. AppLovin Corporation Stock Has Fallen Too Far
Positive Sentiment: A separate comparison highlighted AppLovin’s explosive growth and strong net margins from its AI-powered advertising technology, providing a potential fundamental counterpoint to the recent decline. AppLovin vs. Pinterest
Neutral Sentiment: Multiple law firms reiterated that investors who purchased AppLovin shares between February 12 and August 5, 2026 may seek appointment as lead plaintiff in a federal securities class action by November 16, 2026. The repeated announcements largely provide procedural updates rather than new company disclosures. AppLovin Shareholder Action Reminder
Negative Sentiment: The litigation alleges that AppLovin overstated the consistency of improvements to its AI models and the readiness of its generative-AI video creative tool. The complaints point to a July analyst report and the August 5 quarterly results as events that sharply reduced the stock, while one notice alleges CEO Adam Foroughi and CFO Matthew Stumpf sold more than $109.1 million of shares. These allegations have not been proven, but the legal overhang may weigh on investor sentiment and increase perceived regulatory and financial risk. AppLovin Shareholder Alert

Analyst Ratings Changes

Several equities research analysts have recently weighed in on the stock. Daiwa Securities Group lowered their price target on shares of AppLovin from $569.00 to $345.00 and set an “outperform” rating for the company in a research report on Wednesday, August 19th. BTIG Research cut their price target on AppLovin from $408.00 to $396.00 and set a “buy” rating on the stock in a report on Tuesday, September 8th. Weiss Ratings raised AppLovin from a “hold (c)” rating to a “hold (c+)” rating in a research report on Friday, October 16th. Morgan Stanley decreased their price objective on AppLovin from $450.00 to $400.00 and set an “overweight” rating for the company in a research note on Tuesday, October 13th. Finally, William Blair set a $440.00 price target on shares of AppLovin in a report on Monday, August 17th. Three investment analysts have rated the stock with a Strong Buy rating, seventeen have issued a Buy rating and eight have issued a Hold rating to the company. Based on data from MarketBeat, AppLovin currently has an average rating of “Moderate Buy” and a consensus price target of $507.75.

View Our Latest Analysis on APP

AppLovin Price Performance

The company has a quick ratio of 4.30, a current ratio of 4.30 and a debt-to-equity ratio of 1.11. The firm has a market cap of $87.67 billion, a PE ratio of 20.11, a price-to-earnings-growth ratio of 0.56 and a beta of 2.56. The stock has a 50 day moving average price of $301.15 and a two-hundred day moving average price of $408.12.

AppLovin (NASDAQ:APP – Get Free Report) last issued its quarterly earnings results on Wednesday, August 5th. The company reported $3.76 earnings per share (EPS) for the quarter, meeting analysts’ consensus estimates of $3.76. AppLovin had a net margin of 64.58% and a return on equity of 193.10%. The business had revenue of $1.92 billion for the quarter, compared to analyst estimates of $1.94 billion. During the same quarter in the prior year, the business posted $2.39 EPS. AppLovin’s revenue for the quarter was up 52.8% compared to the same quarter last year. As a group, equities analysts expect that AppLovin Corporation will post 15.67 earnings per share for the current year.

Institutional Trading of AppLovin

A number of institutional investors and hedge funds have recently added to or reduced their stakes in the company. Signature Estate & Investment Advisors LLC raised its position in AppLovin by 3,695.3% during the 2nd quarter. Signature Estate & Investment Advisors LLC now owns 76,361 shares of the company’s stock worth $39,345,000 after buying an additional 74,349 shares during the last quarter. Insight Wealth Strategies LLC acquired a new position in AppLovin during the second quarter valued at $6,939,000. Generate Investment Management Ltd purchased a new stake in AppLovin in the second quarter valued at $7,226,000. Nykredit A S purchased a new stake in AppLovin in the second quarter valued at $41,902,000. Finally, Saudi Central Bank grew its position in AppLovin by 88.7% during the 2nd quarter. Saudi Central Bank now owns 16,070 shares of the company’s stock worth $8,280,000 after purchasing an additional 7,555 shares during the period. Institutional investors and hedge funds own 41.85% of the company’s stock.

About AppLovin

(Get Free Report)

AppLovin Corporation is a technology company that provides software and services designed to help mobile application developers grow, monetize and operate their businesses. Its platform supports user acquisition, advertising, mediation, analytics and other functions across the mobile app ecosystem.