AppLovin Stock Surges as Institutional Investors Increase Holdings and Analysts Predict Strong Q3 Earnings

AppLovin Corporation (NASDAQ: APP) has seen a significant surge in its stock price in recent days, driven by several positive factors. As of November 6, 2024, the stock opened at $165.18, reflecting a market capitalization of $55.21 billion.

Institutional investors have been increasingly bullish on AppLovin. The National Pension Service, for instance, grew its holdings in AppLovin by 45.5% in the third quarter, purchasing an additional 158,267 shares. This brings the total number of shares owned by the National Pension Service to 506,167, valued at approximately $66.08 million.

Other institutional investors, such as Sumitomo Mitsui Trust Holdings Inc., Janney Montgomery Scott LLC, Nordea Investment Management AB, and MGB Wealth Management LLC, have also increased their stakes in AppLovin during the first quarter. These investments highlight the growing confidence in AppLovin’s financial health and growth potential.

Analysts are predicting strong earnings for AppLovin’s Q3 2024. Wedbush analyst M. Pachter anticipates that the company will post earnings of $0.92 per share for the quarter, with a “Strong-Buy” rating on the stock. The consensus estimate for AppLovin’s current full-year earnings is $3.47 per share.

AppLovin’s revenue has been robust, with a year-over-year increase of 44.0% in the last reported quarter. The company’s software solutions, including AppDiscovery, Adjust, MAX, and Wurl, continue to drive its growth by enhancing the marketing and monetization capabilities for mobile app developers and advertisers.

The company’s stock has been favored by analysts, with a consensus rating of “Moderate Buy” and a consensus price target of $136.78. Despite some concerns about the stock being overvalued, the overall sentiment remains positive due to AppLovin’s strong financial performance and strategic expansions into new verticals.