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Applovin Corporation (APP)

POSITIVE
Communication ServicesAdvertising AgenciesUnited States

Fundamental

78

Price

$305.58

Market Cap

$100.31B

Part 1 · What the company is worth

Overview

AppLovin runs an advertising auction that decides which ad a mobile app shows a user and how much the advertiser pays for that moment, then continually adjusts its bidding based on which ads actually lead to a purchase or install. It built this business inside mobile games, buying ad space from thousands of small game publishers and reselling it to advertisers, then rebuilt its bidding technology around AI. In 2025 it sold off the mobile game studios it used to own, becoming a pure advertising-technology company.

How it makes money

AppLovin earns the spread between what advertisers pay to show an ad and what it pays app publishers for the ad space, plus platform fees. Because it prices each auction using its own AI model, better predictions of which user will actually buy something let it bid more aggressively and win more auctions without giving away margin — an edge built on data and algorithms rather than a sales force. Following the 2025 divestiture of its Apps business, essentially all revenue now comes from this single advertising segment.

Revenue by segment

Advertising100%

AppLovin's entire reported business following the 2025 sale of its mobile game studios: the AI-driven advertising and app-marketing platform, now its only segment.

Competitive moat

Network effects · Narrow

More advertiser demand bidding into AppLovin's auction generates better training data for its AI pricing model, which in turn wins more ad placements from publishers, attracting still more advertiser demand — a flywheel visible in its recent growth. But the underlying auction technology is not unique to AppLovin, and large rivals like Google and Meta run comparable systems at even greater scale.

What drives demand

Cyclical

Advertising budgets, especially the mobile app install and in-app purchase spending AppLovin depends on, expand and contract with the broader economy and with how much cash mobile game and app developers have to spend on user acquisition. A slowdown in consumer discretionary spending on apps and games flows quickly into lower marketing budgets and lower AppLovin revenue.

Key risks

  • Dependence on Apple and Google distribution — AppLovin's advertisers and publishers operate almost entirely inside the Apple App Store and Google Play Store; a policy change on tracking, data sharing or fees by either platform can directly affect ad targeting and revenue.
  • Concentration in mobile gaming ad spend — A large share of ad demand still comes from mobile game developers buying user-acquisition ads; a pullback in gaming ad budgets affects AppLovin more than a broadly diversified ad platform.
  • Reliance on a single reportable segment — After divesting its Apps business in 2025, AppLovin depends entirely on its advertising platform for revenue, with no other business line to offset a slowdown there.
  • Competition from much larger advertising platforms — Google, Meta and other large ad platforms compete for the same advertiser budgets with far greater scale and data, and could apply comparable AI bidding technology of their own.

The case for

Buyers argue that focusing entirely on advertising after selling the Apps business lets management concentrate fully on its highest-margin, fastest-growing technology, that its AI bidding engine has demonstrably out-performed the industry given 70% revenue growth, and that mobile gaming is just the first vertical it can expand its auction technology into.

The case against

Sellers fear that divesting the Apps business removes a diversifying revenue stream and leaves AppLovin fully exposed to one advertising segment, that its growth depends heavily on ad spend from mobile game developers that can pull back quickly, and that far larger platforms like Google and Meta could replicate its AI-bidding advantage given enough time and data.

Written by the editors, published on August 18, 2026

Direct competitors

Who this company fights with for the same customers

Compare

Generated on August 23, 2026 with claude-opus-5 — shared with all users

P/E: 21.1Score: 71Market cap: —

Meta's Audience Network and its app-install ad products chase the same performance advertising budgets from mobile app and e-commerce marketers that AppLovin's AXON engine is built to win.

P/E: 21.1Score: 71Market cap: $2.83T

Named in AppLovin's own 10-K, Amazon's advertising arm competes for the e-commerce and performance budgets AppLovin is targeting as it opens its platform beyond gaming.

Alphabet Inc. (Google)GOOGL

Google's AdMob and Google Ads compete directly with AppLovin's MAX mediation and ad network for the same app publishers' ad inventory and the same advertisers' spend.

Unity Software Inc.U

Unity's LevelPlay mediation and Unity Ads network, built on the acquired ironSource business, are the closest like-for-like alternative to AppLovin MAX for mobile game publishers and user-acquisition buyers.

Moloco, Inc.Not tracked

Moloco is an independent machine-learning demand-side platform selling ROAS-optimized app-install and commerce media campaigns to the same app marketers and retailers AppLovin courts with its self-serve platform.

Liftoff Mobile, Inc.Not tracked

Liftoff runs a mobile performance ad network and the Vungle monetization stack, competing for the same user-acquisition budgets and the same app publishers' ad slots.

Balance Sheet & Liquidity

Revenue

$6.83B

Trailing 12 months (through 6/30/2026)

Net Income

$4.41B

Trailing 12 months (through 6/30/2026)

Free Cash Flow

-

Total Equity

$2.13B

Total Liabilities

$5.12B

Current Ratio

4.30

Interest Coverage

26.62

Debt/EBITDA

0.81

Earnings Per Share

Revenue & Net Income

Free Cash Flow

Income Breakdown

Historical statement

Margins over time

Debt over time

How heavy the debt is

Growth grid

Growth — Revenue

Fair Value Estimation

Fairly Valued

Fair Value

$300.51

Current Price

$305.58

Margin of Safety

-1.7%

Fair Value Range

$195.33 - $405.69

Estimation Methods

Analyst Target:$526.39
DCF:$53.24
PE-based:$274.78
Graham Growth:$211.64
EPV:$68.87
Analyst Consensus:Strong Buy (32B / 4H / 0S)
Last Earnings Surprise:+0.07%

Valuation Metrics

P/E Ratio

22.95

ROE

156.2%

P/B Ratio

31.65

P/FCF

-

Gross Margin

88.5%

ROIC

59.6%

Profitability Radar

Value Creation (Economic Moat)

ROIC

59.6%

WACC

17.6%

ROIC − WACC

+42.0 pp

ROIC exceeds the cost of capital — the company is creating value for shareholders.

Fundamental Analysis Criteria

Passed (19)

  • EPS shows upward trend
  • EPS CAGR 73.29%
  • Price CAGR 26.54%
  • ROIC 59.6%
  • Gross Margin 88.5%
  • Debt/Equity ratio
  • Operating Margin 77.4%
  • Current Ratio
  • Interest Coverage
  • Debt/EBITDA
  • Return on Tangible Assets
  • ROE 193.1%
  • Revenue Growth 5Y 30.4%
  • Analyst Consensus 89% Buy
  • Earnings Surprise avg 3.5%
  • Earnings Quality (OCF/NI) 1.03
  • Share Dilution -2.0%
  • Net Margin Trend 64.6% vs 62.7%
  • Piotroski F-Score 9/9

Failed (4)

  • P/B Ratio 31.65
  • Low reliance on intangibles
  • Price below Graham Number
  • DCF valuation (Overvalued)

Unavailable (5)

  • P/FCF NaN
  • Dividend Payout NaN%
  • Positive Free Cash Flow
  • CapEx intensity
  • PEG Ratio (need PE > 0 and growth > 0)

Piotroski F-Score

9/9

Strong financial health

score
criteria

Earnings Quality

1.03

High quality: earnings backed by cash

Share Dilution

-2.0%

Buying back shares. Shareholder friendly

Governance

Executive Team

NameTitleAge
Mr. Adam Arash ForoughiCo-Founder, CEO & Director44
Mr. Matthew A. StumpfChief Financial Officer41
Ms. Victoria ValenzuelaConsultant51
Mr. Dmitriy DoroshVice President Controller & Principal Accounting Officer-
Mr. Giovanni GeCTO and Chief Product & Engineering Officer-
Mr. David HsiaoHead of Investor Relations-
Ms. Corina CacoveanChief Legal Officer-

Audit Risk

1

Board Risk

9

Compensation Risk

10

Shareholder Rights Risk

10

Part 2 · The price and when to enter

This part won't tell you whether the company is worth owning: it helps you choose when to buy it, once the fundamentals have convinced you. Inside: technical analysis, potential, historical drawdowns, gamma exposure.

Latest News

Recent headlines for APP, sourced from Markets Gazette.

  • 4d agoNEGATIVE
    Piper Sandler sconsiglia di comprare il calo delle azioni AppLovin

    Piper Sandler analyst James Callahan issued a cautious note on AppLovin (APP), maintaining a Neutral rating and lowering the price target to $325. This comes as APP shares have already fallen over 50% since early June. The firm cited a significant loss of operational momentum within the mobile technology company's engine. Investors should note that the reduced price target suggests limited upside potential from current levels, reinforcing a bearish sentiment for the stock amidst ongoing operational challenges.

  • 19d agoNEGATIVE
    AppLovin’s AI stumbles send the stock sliding toward its worst day in over a year

    AppLovin Corporation experienced a significant stock decline, approaching its worst performance in over a year, following a stumble in its artificial intelligence initiatives. The company also failed to meet revenue expectations for the most recent fiscal quarter. This dual disappointment suggests potential headwinds in AppLovin's core business and its forward-looking AI strategy, raising concerns among investors about future growth prospects and competitive positioning in the rapidly evolving tech landscape.

  • 6/12/2026POSITIVE
    If You Invested $100 In AppLovin Stock 5 Years Ago, You Would Have This Much Today

    An investment of $100 in AppLovin Corporation (APP) five years ago would have yielded a substantial return, illustrating the company's significant growth trajectory. While specific figures are not provided in the prompt, the article's premise suggests a strong performance for APP shareholders. This highlights AppLovin's success in the mobile technology and advertising sector, potentially driven by its platform innovations and market expansion. Investors considering the stock should analyze its recent performance, competitive landscape, and future growth catalysts.

  • 6/9/2026NEGATIVE
    Why AppLovin Stock Is Tumbling Tuesday

    AppLovin Corporation (NASDAQ: APP) experienced a significant decline, trading down approximately 8% on Tuesday. This downturn is attributed to a broader market sentiment characterized by a 'risk-off' environment, which is particularly impacting high-multiple software and ad-tech companies. The Nasdaq index's performance is a key indicator of this trend, suggesting that investors are moving away from growth-oriented, speculative assets. For shareholders, this indicates a challenging period for the ad-tech sector, potentially driven by macroeconomic concerns or a shift in investor appetite.

  • 5/27/2026POSITIVE
    Applovin Stock Is Skyrocketing Today: What's Going On?

    Applovin Corporation shares experienced a significant surge on Wednesday, indicating strong positive market sentiment towards the company. While the article mentions a slide in oil prices due to a U.S.-Iran agreement potentially easing shipping chokepoints, the primary focus and the driver of the stock's movement is Applovin's performance. Investors are likely reacting to company-specific news or broader market trends that favor technology and advertising platforms, overshadowing commodity market fluctuations. This upward momentum suggests a positive outlook for Applovin's business operations and future growth prospects.

  • 5/26/2026POSITIVE
    Applovin Stock Surges On U.S.-Iran Negotiation Hopes

    Applovin Corporation shares experienced a notable surge on Tuesday, driven by a broader market rotation into software sector stocks. This upward movement is attributed to cooling inflation expectations, which are indirectly influenced by developing geopolitical situations involving U.S.-Iran negotiations. The shift suggests investors are seeking growth opportunities in technology amidst perceived stability in the Middle East, potentially signaling a favorable environment for software companies like Applovin.

  • 5/19/2026NEUTRAL
    Here's How Much You Would Have Made Owning AppLovin Stock In The Last 5 Years

    AppLovin Corporation (APP) stock has experienced significant performance over the past five years. While the article title suggests a focus on historical returns, it does not provide specific figures or context regarding recent performance drivers, future outlook, or any new developments. Therefore, it serves as an informational piece on past stock appreciation rather than a forward-looking trading signal. Investors should consult more current financial data and analysis for actionable insights.

  • 5/7/2026POSITIVE
    Applovin Stock A Buy After Q1 Results, Guidance: Analyst Says 'Valuation Remains Cheap'

    Applovin Corporation's stock is experiencing a significant surge following its Q1 results and positive guidance, with analysts labeling its valuation as 'cheap' and suggesting further upside potential. The company's consumer business segment is identified as a key driver for future growth. This positive sentiment is reinforced by sustained 'Overweight' and 'Outperform' ratings from major financial institutions like Morgan Stanley and Credit Suisse, indicating strong institutional confidence in the company's performance and market position. Investors are likely to see this as a signal for potential capital appreciation.

  • 5/7/2026NEGATIVE
    AppLovin Shares Dip Despite Earnings Beat And Raised Outlook

    AppLovin Corporation (NASDAQ: APP) experienced a pre-market share decline despite reporting an earnings beat and raising its future outlook. This counterintuitive market reaction suggests that investors may be focusing on other factors or have already priced in the positive news. The company's ability to exceed earnings expectations and provide an optimistic forecast typically signals strong operational performance and growth potential, which could lead to a reassessment of its valuation by the market if the current dip is seen as a temporary overreaction.

  • 5/6/2026NEUTRAL
    AppLovin Gears Up For Q1 Print; Here Are The Recent Forecast Changes From Wall Street's Most Accurate Analysts

    AppLovin Corp (APP) is set to report its first-quarter earnings on May 6th. Wall Street analysts are forecasting earnings per share of $3.46 and revenue of $1.78 billion. The stock saw a modest increase of 0.7% in anticipation of the report. Recent analyst ratings from February 2022, including 'Overweight' from Morgan Stanley and 'Outperform' from Credit Suisse, suggest a generally positive sentiment from key financial institutions, though no new rating changes are detailed in this update. Investors will be closely watching the company's performance against these expectations.

via Markets Gazette