AppLovin has had a quarter that looks almost "unfair" in terms of numbers: revenues of $1.84 billion (+59% year-over-year), adjusted EBITDA of $1.56 billion, margins of 84-85%, free cash flow of $1.29 billion for the three months. But at the same time, the stock is still over 18% off its peak in 2026 and sentiment around APP is more nervous than euphoric.
Why the share price is down - Because of fears of Meta-type competition, fears of "AI breaking adtech", and short-term negative headlines. In our view, this contradiction - extremely strong fundamentals vs. tired or scared sentiment - is why it makes sense to break down AppLovin today.
Top points of analysis
Extremely strong quarter - revenue of $1.84 billion (+59% Y/Y), adjusted EBITDA of $1.56 billion with margins of 84-85%, free cash flow of $1.29 billion for the three months. Still, the stock remains about 18% below this year's high and sentiment is more nervous than optimistic.
Contradiction between fundamentals and price - the share…