Form 4: AppLovin CEO Sells Shares Under 10b5-1 Plan

AppLovin CEO and Chairperson Arash Adam Foroughi reported multiple sales of Class A Common Stock on November 21, 2025, executed under a pre-arranged 10b5-1 trading plan.

Summary

• Arash Adam Foroughi, AppLovin's CEO, Chairperson, Director, and 10% owner, sold a total of 32,646 shares of Class A Common Stock on November 21, 2025.
• The sales were executed under a Rule 10b5-1(c) trading plan, indicating they were pre-scheduled.
• Direct sales amounted to 28,997 shares, with weighted average prices ranging from $511.67 to $528.37 per share.
• Indirect sales, held by The JAF Children's Trust, totaled 3,649 shares, with weighted average prices ranging from $490.60 to $503.37 per share.
• Following these transactions, Foroughi directly beneficially owns 2,553,161 shares and indirectly beneficially owns 2,998,948 shares through The JAF Children's Trust.
• The reporting person disclaims beneficial ownership of shares held by The JAF Children's Trust for Section 16 purposes.

Sentiment

Score: 5

Explanation: Neutral. While insider selling can be perceived negatively, the execution under a 10b5-1 plan suggests these were pre-planned liquidity events rather than a signal of lack of confidence in the company's future. The volume is significant but not extraordinary for a CEO of a large company.

Positives

• Transactions were executed under a Rule 10b5-1(c) plan, indicating pre-scheduled sales rather than a reaction to new, non-public information.

Negatives

• Significant insider selling by the CEO and Chairperson, totaling 32,646 shares.

Future Outlook

No specific future outlook or guidance is provided in this insider transaction report.

Management Comments

• The Reporting Person disclaims beneficial ownership of these shares [held by The JAF Children's Trust], and the filing of this report is not an admission that the Reporting Person is the beneficial owner of these shares for purposes of Section 16 or for any other purpose.

Industry Context

This filing is an insider transaction report and does not provide information related to broader industry trends or competitors.

Related Party Transactions

• Sales of Class A Common Stock were made indirectly through The JAF Children's Trust, which holds shares for the benefit of the Reporting Person's children. The Reporting Person disclaims beneficial ownership for Section 16 purposes.

Stakeholder Impact

• Shareholders: May interpret the insider selling as a negative signal, although the 10b5-1 plan mitigates this. The reduction in direct and indirect holdings by a key executive could be noted.

Key Dates

Recommendation

The filing reports pre-scheduled insider sales by the CEO under a 10b5-1 plan. While the volume of shares sold is notable, the pre-planned nature suggests it's for personal liquidity or diversification rather than a reflection of new negative company developments. Without additional information on company performance or market conditions, this transaction alone does not warrant a change from a 'hold' position, as it's an expected part of executive compensation and financial planning.

Keywords

AppLovin, APP, Insider Trading, Form 4, Stock Sale, Arash Adam Foroughi, CEO, 10b5-1 Plan, Class A Common Stock, Beneficial Ownership