Applovin Corp (NASDAQ: APP) has experienced a decline in its stock price by -4.87 compared to its previous closing price of 415.31. However, the company has seen a fall of -22.55% in its stock price over the last five trading days. seekingalpha.com reported 2025-02-22 that AppLovin’s culture emphasizes a product-first approach, lean operations, and agility, which are crucial for innovation and maintaining competitive advantage in the ad tech market. CEO Adam Foroughi focuses on HR to preserve company culture and prevent talent churn, ensuring the company remains product-led and innovative. AppLovin’s Q4 2024 results showed significant growth, with a 73% increase in advertising revenue and a 248% rise in GAAP net income.
Is It Worth Investing in Applovin Corp (NASDAQ: APP) Right Now?
The price-to-earnings ratio for Applovin Corp (NASDAQ: APP) is above average at 87.01x. The 36-month beta value for APP is also noteworthy at 2.29. There are mixed opinions on the stock, with 17 analysts rating it as a “buy,” 3 rating it as “overweight,” 5 rating it as “hold,” and 0 rating it as “sell.”
The public float for APP is 208.91M, and at present, short sellers hold a 6.75% of that float. The average trading volume of APP on February 24, 2025 was 5.53M shares.
APP’s Market Performance
The stock of Applovin Corp (APP) has seen a -22.55% decrease in the past week, with a 8.99% rise in the past month, and a 23.01% gain in the past quarter. The volatility ratio for the week is 10.04%, and the volatility levels for the past 30 days are at 6.92% for APP. The simple moving average for the past 20 days is -1.81% for APP’s stock, with a 106.98% simple moving average for the past 200 days.
Analysts’ Opinion of APP
Many brokerage firms have already submitted their reports for APP stocks, with The Benchmark Company repeating the rating for APP by listing it as a “Buy.” The predicted price for APP in the upcoming period, according to The Benchmark Company is $375 based on the research report published on January 10, 2025 of the current year 2025.
Piper Sandler, on the other hand, stated in their research note that they expect to see APP reach a price target of $400. The rating they have provided for APP stocks is “Overweight” according to the report published on November 20th, 2024.
Daiwa Securities gave a rating of “Outperform” to APP, setting the target price at $280 in the report published on November 08th of the previous year.
APP Trading at 8.92% from the 50-Day Moving Average
After a stumble in the market that brought APP to its low price for the period of the last 52 weeks, the company was unable to rebound, for now settling with -24.76% of loss for the given period.
Volatility was left at 6.92%, however, over the last 30 days, the volatility rate increased by 10.04%, as shares surge +9.92% for the moving average over the last 20 days. Over the last 50 days, in opposition, the stock is trading +16.52% upper at present.
During the last 5 trading sessions, APP fell by -21.76%, which changed the moving average for the period of 200-days by +419.36% in comparison to the 20-day moving average, which settled at $402.60. In addition, Applovin Corp saw 22.01% in overturn over a single year, with a tendency to cut further gains.
Insider Trading
Reports are indicating that there were more than several insider trading activities at APP starting from ARASH ADAM FOROUGHI, who proposed sale 45,000 shares at the price of $422.21 back on Feb 21 ’25. After this action, ARASH ADAM FOROUGHI now owns shares of Applovin Corp, valued at $18,999,616 using the latest closing price.
Jansen Katie Kihorany, the Officer of Applovin Corp, proposed sale 45,708 shares at $460.04 during a trade that took place back on Feb 20 ’25, which means that Jansen Katie Kihorany is holding shares at $21,027,280 based on the most recent closing price.
Stock Fundamentals for APP
Current profitability levels for the company are sitting at:
- 0.4 for the present operating margin
- 0.75 for the gross margin
The net margin for Applovin Corp stands at 0.34. The total capital return value is set at 0.39. Equity return is now at value 134.52, with 28.11 for asset returns.
Based on Applovin Corp (APP), the company’s capital structure generated 0.77 points at debt to capital in total, while cash flow to debt ratio is standing at 0.59. The debt to equity ratio resting at 3.26. The interest coverage ratio of the stock is 14.46.
Currently, EBITDA for the company is 1.87 billion with net debt to EBITDA at 1.28. When we switch over and look at the enterprise to sales, we see a ratio of 29.43. The receivables turnover for the company is 3.33for trailing twelve months and the total asset turnover is 0.8. The liquidity ratio also appears to be rather interesting for investors as it stands at 2.19.
Conclusion
In summary, Applovin Corp (APP) has had a better performance as of late. Analysts have mixed opinions on the stock, with some viewing it as a “buy” and others as a “hold”. It’s important to note that the stock is currently trading at a significant distance from its 50-day moving average and its 52-week high.
