AppLovin Receives New Buy Rating, Yet Its Stock Prices Are Plummeting.
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jan 14 2026
0mins
Should l Buy APP?
Source: Barron's
- Analyst Recommendations: High-growth stocks like AppLovin typically see price increases when analysts recommend buying, but this trend did not occur recently.
- Market Reaction: The lack of a positive market response to analyst buy recommendations indicates a potential shift in investor sentiment or market conditions.
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Analyst Views on APP
Wall Street analysts forecast APP stock price to rise
20 Analyst Rating
17 Buy
3 Hold
0 Sell
Strong Buy
Current: 456.810
Low
650.00
Averages
763.44
High
860.00
Current: 456.810
Low
650.00
Averages
763.44
High
860.00
About APP
AppLovin Corporation is a marketing platform. The Company provides end-to-end software and artificial intelligence (AI) solutions for businesses to reach, monetize and grow their global audiences. Its advertising solutions include a comprehensive suite of tools including AppDiscovery, MAX, Adjust, Wurl and Axon Ads Manager. AppDiscovery is powered by AXON, its AI-powered advertising engine, and matches advertiser demand with publisher supply through auctions at vast scale and at microsecond-level speeds. MAX is its monetization solution, utilizing an advanced in-app bidding technology that optimizes the value of a publisher’s advertising inventory by running a real-time competitive auction, driving more competition, and higher returns for publishers. Adjust is its measurement and analytics marketing platform which provides marketers with the visibility, insights, and data needed to scale their apps marketing and drive more informed results. Wurl is its connected TV (CTV) platform.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
AppLovin Reports Strong 2025 Earnings Amidst Growth Concerns
- Strong Financial Performance: AppLovin's Q4 2025 revenue surged 66% year-over-year to nearly $1.7 billion, with full-year revenue reaching approximately $5.5 billion, reflecting robust growth in the advertising technology sector.
- Significant Net Income Growth: The company's Q4 net income rose 84% year-over-year to $1.1 billion, while full-year net income increased by 111% to $3.3 billion, indicating a substantial improvement in profitability.
- Substantial Free Cash Flow Increase: AppLovin generated $3.95 billion in free cash flow in 2025, up from $2.1 billion in 2024, with free cash flow representing 72% of revenue, showcasing its strong cash-generating capabilities.
- Future Growth Risks: Despite impressive results, the revenue guidance for Q1 2026 indicates a significant slowdown, with expected revenue between $1.745 billion and $1.775 billion, suggesting a year-over-year growth of about 52% after adjustments, which may impact investor confidence.
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Wedbush Significantly Raises AppLovin Price Target After Earnings Beat
- Strong Earnings Performance: AppLovin reported fourth-quarter revenue of $1.658 billion, a 66% year-over-year increase that surpassed estimates, with adjusted EBITDA of $1.399 billion and EPS of $3.24, showcasing the company's robust profitability and market competitiveness.
- Analyst Optimism: Wedbush analyst Alicia Reese reiterated an Outperform rating on AppLovin and raised the price target from $465 to $640, viewing the current stock pullback as a buying opportunity with significant upside potential in the future.
- Market Reaction Concerns: Despite the strong earnings report, AppLovin's stock fell 19.11% to $369.50 on Thursday, reflecting market concerns about the company's future growth, particularly regarding the time and data required for new business verticals to deliver meaningful value.
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AppLovin Reports Strong 2025 Earnings Amidst Growth Concerns
- Strong Financial Performance: AppLovin's Q4 2025 revenue surged 66% year-over-year to nearly $1.7 billion, with full-year revenue reaching approximately $5.5 billion, reflecting robust growth in the advertising technology sector.
- Significant Net Income Growth: The company's Q4 net income rose 84% year-over-year to $1.1 billion, while full-year net income increased by 111% to $3.3 billion, indicating a substantial improvement in profitability.
- Substantial Free Cash Flow Increase: AppLovin generated $3.95 billion in free cash flow in 2025, up from $2.1 billion in 2024, with free cash flow representing 72% of revenue, showcasing its strong cash-generating capabilities.
- Future Growth Risks: Despite impressive results, the revenue guidance for Q1 2026 indicates a significant slowdown, with expected revenue between $1.745 billion and $1.775 billion, suggesting a year-over-year growth of about 52% after adjustments, which may impact investor confidence.
See More
U.S. Markets Declined on Thursday; Icon PLC Experienced Largest Drop
- Stock Market Decline: U.S. stock indexes experienced a decline on Thursday, with the overall market dropping by 2.03%.
- Sector Performance: The S&P 500 index fell by 1.57%, while the Dow Jones Industrial Average decreased by 1.34%.
See More
Wall Street Tech Stocks Lose Over $500 Billion in Value
- Market Value Loss: On Thursday, Wall Street's tech sector saw over $500 billion wiped off market value across 10 major companies, indicating a sharp decline in investor confidence amid simultaneous pressures on both software and hardware sectors.
- Cisco Earnings Impact: Cisco's stock plummeted 11% despite reporting earnings of $1.04 per share, exceeding expectations, as the company’s gross margin guidance of 65.5%-66.5% fell short of the 68% consensus, highlighting the impact of rising hardware costs.
- Memory Shortage Risks: Lenovo confirmed mounting pressure on PC shipments, with CEO Yang Yuanqing stating that while unit pressures are expected, the company aims to maintain profitability, reflecting growing concerns over memory shortages in the industry.
- Software Sector Decline: The iShares Expanded Tech-Software Sector ETF dropped over 3% on Thursday, with the sector down over 20% year-to-date, illustrating the ongoing impact of fears surrounding AI disruption on software stock performance.
See More
Wall Street Rattled by Cisco's Cautious Outlook
- Cisco's Stock Plunge: Despite beating earnings and revenue expectations, Cisco Systems Inc. (NASDAQ:CSCO) saw its shares drop over 11%, marking the worst single-day decline since May 2022, as investors expressed concerns over profit durability.
- Tech Sector Decline: The iShares Tech-Expanded Software Sector ETF (NYSE:IGV) fell 3.7%, revisiting lows from last week, indicating heightened sensitivity to AI disruption risks following Cisco's outlook.
- Small Caps Underperform: The Nasdaq 100 dropped 1.7%, while both the S&P 500 and Dow Jones Industrial Average lost 1.2%, with the Russell 2000 small-cap index sliding 2.4%, reflecting a cautious market sentiment.
- Increased Volatility: The VIX surged 16%, as investors rotated into defensive sectors, with utilities and consumer staples outperforming, highlighting a risk-off tone in the market.
See More
Wedbush Significantly Raises AppLovin Price Target After Earnings Beat
- Strong Earnings Performance: AppLovin reported fourth-quarter revenue of $1.658 billion, a 66% year-over-year increase that surpassed estimates, with adjusted EBITDA of $1.399 billion and EPS of $3.24, showcasing the company's robust profitability and market competitiveness.
- Analyst Optimism: Wedbush analyst Alicia Reese reiterated an Outperform rating on AppLovin and raised the price target from $465 to $640, viewing the current stock pullback as a buying opportunity with significant upside potential in the future.
- Market Reaction Concerns: Despite the strong earnings report, AppLovin's stock fell 19.11% to $369.50 on Thursday, reflecting market concerns about the company's future growth, particularly regarding the time and data required for new business verticals to deliver meaningful value.
- Cautious Management Approach: Management indicated a commitment to continued strong growth and record margins but stressed they are not rushing to market, instead carefully curating a high-performing product stack to ensure long-term sustainability.
See More
Crocs Shares Surge 21% on Strong Earnings Guidance
- Crocs Strong Guidance: Crocs shares surged 21% after the company projected adjusted earnings between $2.67 and $2.77 per share for the current quarter, exceeding the market expectation of $2.52, indicating resilience and growth potential in the current economic climate.
- Restaurant Brands Challenges: Despite reporting revenue and profit beats, Restaurant Brands' shares fell 6%, primarily due to rising costs, including beef, which pressured profits, reflecting the dual challenges of intensified industry competition and cost pressures.
- Cognex Stock Surge: Cognex shares jumped over 37% after reporting adjusted earnings and revenue beats for the fourth quarter, along with optimistic guidance for the current quarter, showcasing significant advancements in AI-enabled industrial machine vision technology.
- Equinix Exceeds Guidance: Equinix shares rose 12% after projecting adjusted EBITDA of $5.141 billion to $5.221 billion by 2026, surpassing analyst expectations, demonstrating strong growth potential in the digital infrastructure sector.
See More
