Coatue Management Reduces $462M in AppLovin Corporation ($APP)
Coatue Management cut its AppLovin holdings by 41%, a significant reduction.
Key Points
- Coatue Management cut its AppLovin stake by 895,739 shares, reducing its position by 41% to 1.29 million shares valued at $617 million.
- AppLovin has a market cap of $166.9 billion and a P/E ratio of 43.23, with a 52-week range between $320 and $745.61.
- CEO Arash Adam Foroughi recently sold shares, and analysts maintain a strong buy consensus with a target mean price of $648.10.
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Coatue Management has trimmed its holdings in AppLovin Corporation (NasdaqGS: APP) by 895,739 shares, cutting its position by about 41%. As of its latest filing, Coatue holds 1,290,008 shares valued at approximately $617 million. This change was reported in the firm's Form 13F filing with the SEC, reflecting holdings as of the end of the reporting period.
What Changed in Coatue Management's AppLovin Position
Coatue Management reduced its stake in AppLovin from 2,185,747 shares to 1,290,008 shares, a decrease of 895,739 shares or 41%. The reported value of the holdings now stands at $617 million, showcasing a significant reduction in their investment in the company.
Other Institutional Activity in AppLovin
Other major institutional investors also made changes to their AppLovin holdings. BlackRock, Inc. decreased its stake by 531,525 shares, bringing its total to 23,640,172 shares, valued at $9.41 billion. Vanguard Capital Management LLC added 16,750,884 shares, resulting in a total of 16,750,884 shares worth $6.67 billion. FMR LLC increased its position by 2,600,386 shares to 15,691,414 shares, valued at $6.25 billion. State Street Corp reduced its holdings slightly by 137,514 shares, ending with 11,767,329 shares worth $4.68 billion. Meanwhile, Geode Capital Management, LLC added 121,369 shares, totaling 7,288,372 shares valued at $2.90 billion.
AppLovin Corporation Stock Up 62.4%
Shares of AppLovin Corporation (NasdaqGS: APP) traded near $478.28. The company boasts a market cap of approximately $166.9 billion, with a P/E ratio of 43.23 and a forward P/E of 22.66. AppLovin's beta is 2.455, indicating higher volatility compared to the market. The stock's 52-week range spans from $320 to $745.61, with a 50-day moving average of $482.04 and a 200-day moving average of $541.72.
$APP stock price
Daily closing prices, year to date. Not investment advice.
Recent Earnings
AppLovin reported revenue of $6.16 billion, reflecting a growth rate of 0.59%. The company achieved a net margin of 0.6429 and a return on equity of 2.66%. Earnings per share stood at $11.49. Investors are awaiting the next earnings report scheduled for May 6, 2026.
Earnings drift grade
Outlook vs expectations on the last report — not price action.
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Forward outlook
4 target raises vs 1 cuts.
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EPS & revenue
EPS beat estimates by 3.6%. Revenue beat estimates by 3.3%.
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Profit surprise
EBITDA met by 1 percent. Operating income beat by 7 percent.
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Pre-earnings setup
Bar was high, analysts already very bullish.
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Analyst signal
4 target raises, 1 target cut.
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Earnings quality
Gross margin up 2.0 points. Operating margin up 5.7 points. Positive free cash flow.
Earnings Call Summary
AppLovin delivered 1.84 billion dollars in revenue, up 59 percent year over year, and beat guidance again. The gaming business remains strong while the consumer vertical is growing faster, with March spending 25 percent higher than January and April setting a record month. Management is excited about opening the platform to the public in June and seeing new game developers adopt ad monetization alongside in-app purchases.
Guidance AppLovin guided for 1.915 to 1.945 billion dollars in second-quarter revenue, up 52 to 55 percent year over year. They expect adjusted EBITDA margin around 84 to 85 percent. Management said the consumer vertical is accelerating fast and the June platform launch to the public will unlock much larger growth.
Solid report. Results were generally better than expected, but the forward outlook did not materially change.
Insider Buying and Selling at AppLovin Corporation
CEO Arash Adam Foroughi sold several tranches of shares in June 2026. On June 12, he sold 41,667 shares at an average price of $489.03. The day prior, on June 11, he sold another 41,666 shares at $484.75. Earlier, on June 10, he sold 20,833 shares at $503.91 and 16,667 shares at an undisclosed price. Additionally, Victoria Valenzuela, the Chief Administrative Legal Officer & Corporate Secretary, sold 20,000 shares on June 4 at $565.89.
Analysts Set New Price Targets
On May 7, 2026, several analysts updated their price targets for AppLovin. Macquarie, UBS, and Wells Fargo maintained their buy ratings with targets of $730, $750, and $571 respectively. JP Morgan held a neutral stance with a $515 target, while Wedbush reiterated a buy rating with a $640 target. The consensus among analysts is a strong buy, with a mean target price of $648.10 based on 30 analyst opinions.
About AppLovin Corporation
AppLovin Corporation, headquartered in Palo Alto, California, offers AI-powered advertising solutions through its two main segments: Advertising and Apps. The company provides a range of products, including the Axon Ads Manager, MAX in-app bidding technology, Adjust analytics platform, and Wurl connected TV platform. AppLovin serves a variety of clients, from small businesses to large enterprises, across the globe. Founded in 2011, the company is led by CEO Adam Arash Foroughi and employs 876 people.
Bottom Line
Coatue Management's decision to cut its stake in AppLovin by 41% is a notable move in its investment strategy. AppLovin's strong market presence and innovative advertising solutions continue to attract attention, with analysts maintaining a strong buy consensus. As always, 13F filings offer a historical view of fund positions, which may not reflect current holdings.
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