Morgan Stanley Cuts AppLovin (APP) Price Target to $400

Morgan Stanley has reiterated its Overweight rating on AppLovin Corporation with a new price target of $400 as of October 13, 2026, a 50.31% upside from the current price.

By TradeTexts Research Desk · Published Oct 16, 2026, 2:02 PM EDT

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Morgan Stanley cut its price target on AppLovin Corporation ($APP) to $400 from $450 on October 13, 2026, and rates the stock "Overweight".

Since the rating, $APP is down 2.3% to date (from the $272.28 close on Oct 13, 2026).

APP AppLovin Corporation

$266.13 -56.96% year to date

Daily close · Oct 16, 2026

Key Points

Morgan Stanley reiterated its Overweight rating on AppLovin Corporation, lowering the price target from $450 to $400 on October 13, 2026.
Morgan Stanley's $400 price target implies 50.31% upside from AppLovin Corporation's ($APP) current $266.11 share price.
As of October 16, 2026, AppLovin shares recently traded around $266.11, which is about 44.6% below the mean analyst price target of $480.08.
The company reported a revenue growth of 52.8% year-over-year, with a trailing twelve-month revenue of approximately $6.83 billion.

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Morgan Stanley has reiterated its Overweight rating on AppLovin Corporation (NasdaqGS: APP), adjusting the price target from $450 to $400 on October 13, 2026. This update comes as the company continues to show strong revenue growth in the advertising sector.

Morgan Stanley's Call on AppLovin

Morgan Stanley maintained its Overweight rating and set a new price target of $400. This represents a decrease from the previous target of $450. Despite this adjustment, the rating suggests the firm still sees potential in the company’s stock.

Other Institutional Activity in AppLovin

In the latest filings, several other institutional investors have shown strong interest in AppLovin. Blackrock Inc. holds 24,040,619 shares valued at about $6.40 billion after increasing its stake by 399,534 shares. Vanguard Capital Management LLC has 17,744,980 shares worth approximately $4.72 billion, having added 993,370 shares. FMR, LLC also increased its holdings by 1,602,098 shares, bringing its total to 17,293,553 shares valued at around $4.60 billion. State Street Corporation and Invesco Ltd. also made slight increases in their respective stakes.

AppLovin Corporation Stock Up 1.5%

As of October 16, 2026, AppLovin shares were recently trading around $266.11, which is 44.6% below the mean analyst price target of $480.08. The stock is currently below its 50-day moving average by about 14.1% and has dropped 39.4% below its 200-day average. The shares are also about 63.9% below their 52-week high of $738.01, but 2.0% above the 52-week low of $260.99.

12-month forecast

$APP price target

AppLovin Corporation daily closes and this analyst's $400 target. Not advice.

Recent Earnings

AppLovin reported trailing twelve-month revenue of approximately $6.83 billion, reflecting a year-over-year growth of 52.8%. The company has a net margin of 64.6% and a return on equity (ROE) of 203.7%. The next earnings report is scheduled for November 4, 2026.

Earnings drift grade

Outlook vs expectations on the last report — not price action.

B 73/100

Reported May 6, 2026

Forward outlook
4 target raises vs 1 cuts.
EPS & revenue
EPS beat estimates by 3.6%. Revenue beat estimates by 3.3%.
Profit surprise
EBITDA met by 1 percent. Operating income beat by 7 percent.
Pre-earnings setup
Bar was high, analysts already very bullish.
Analyst signal
4 target raises, 1 target cut.
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

Recent insider transactions include Chief Executive Officer Arash Adam Foroughi selling 52,165 shares valued at about $25.31 million on June 12, 2026. Foroughi also sold another 22,544 shares for approximately $11.16 million on the same day. Director Eduardo Vivas sold 163,910 shares worth about $82.62 million on June 16, 2026. Additionally, Director Maynard George Webb Jr. sold 3,076 shares valued at around $1.60 million on July 6, 2026.

Analysts Set New Price Targets

On October 13, 2026, Morgan Stanley reiterated its Overweight rating on AppLovin with a new price target of $400. This follows several recent ratings from other firms, with Needham maintaining a Buy rating and a target of $475, and Jefferies holding a Buy rating with a target of $375. The consensus among analysts suggests a buy recommendation with a mean target price of $480.08 based on 31 opinions.

About AppLovin

AppLovin Corporation, headquartered in Palo Alto, CA, provides artificial intelligence-powered advertising solutions for businesses. It operates in both advertising and app development sectors, making it a key player in the advertising industry.

Bottom Line

Investors should watch for AppLovin's upcoming earnings report on November 4, 2026, as it will provide further insight into the company's performance. Additionally, keep an eye on analyst updates and market conditions that could impact the stock's trajectory.