AppLovin
APP
$323.96
+3.01%
AppLovin is a vertically integrated advertising technology company that operates a demand-side platform (AppDiscovery), a supply-side platform (Max), and an exchange connecting advertisers and publishers, with roughly 80% of revenue derived from its DSP. The company has established itself as a leading player in mobile ad tech, leveraging its proprietary AXON 2 AI optimizer to deliver high-return ad placements for advertisers. Currently, the stock is under intense scrutiny as it faces a sharp selloff in 2026, driven by concerns over competitive threats from Meta, potential AI disruption, and a broader tech correction, despite reporting robust revenue growth and exceptional profitability. The narrative centers on whether the recent decline represents an overdone reaction to near-term headwinds or the beginning of a structural growth deceleration.…
APP
AppLovin
$323.96
Related headlines
APP 12-Month Price Forecast
Wall Street consensus
Most Wall Street analysts maintain a constructive view on AppLovin's 12-month outlook, with a consensus price target around $508.39 and implied upside of +56.9% versus the current price.
Average Target
$508.39
0 analysts
Implied Upside
+56.9%
vs. current price
Analyst Count
—
covering this stock
Price Range
$325 - $790
Analyst target range
The target price range spans from a low of $325.00 to a high of $790.00, with the low target just slightly above the current price, suggesting that even the most bearish analyst sees limited downside. The high target implies a potential upside of 146% from current levels, reflecting optimism about the company's growth trajectory and AI-driven margin expansion. Recent ratings actions have been predominantly positive, with firms like Wells Fargo, Citigroup, and Needham reiterating Overweight or Buy ratings in May and June 2026, while JP Morgan maintains a Neutral stance. The wide spread between the low and high targets indicates significant uncertainty about the company's future growth sustainability, but the overall bullish consensus and high average target suggest that analysts view the recent selloff as an overreaction to temporary headwinds.
APP Technical Analysis
AppLovin's stock is in a pronounced downtrend, with a 1-year price change of -35.88% and a 6-month decline of -36.16%. The current price of $320.56 sits near the lower end of its 52-week range, at approximately 5.2% above the 52-week low of $297.50 and 57% below the high of $745.61, indicating that the stock is trading at just 43% of its 52-week range. This positioning near the lows suggests a market that has priced in significant negative sentiment, but also raises the risk of a falling knife if fundamentals continue to deteriorate.
Beta
2.49
2.49x market volatility
Max Drawdown
-59.3%
Largest decline past year
52-Week Range
$298-$746
Price range past year
Annual Return
-43.3%
Cumulative gain past year
| Period | APP Return | S&P 500 |
|---|---|---|
| 1m | +6.7% | -1.1% |
| 3m | -34.8% | +3.0% |
| 6m | -29.4% | +15.4% |
| 1y | -43.3% | +16.2% |
| ytd | -47.6% | +12.1% |
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APP Fundamental Analysis
AppLovin's revenue growth remains exceptionally strong, with the most recent quarter (Q1 2026) reporting revenue of $1.842 billion, a 58.97% year-over-year increase, accelerating from the 43.5% growth seen in Q4 2025 and the 19.8% growth in Q1 2025. This acceleration is driven by the continued adoption of its AXON 2 ad optimizer, which has expanded the DSP's customer base and increased ad spend. However, the sustainability of this growth is a key debate, as competitive threats from Meta and potential AI disruption could pressure future growth rates.
Quarterly Revenue
$1.8B
2026-03
Revenue YoY Growth
+59.0%
YoY Comparison
Gross Margin
88.9%
Latest Quarter
Free Cash Flow
$4.4B
Last 12 Months
Revenue & Net Income Trends (2 Years)
Revenue Breakdown
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Valuation Analysis: Is APP Overvalued?
Given that AppLovin is highly profitable, the PE ratio is the primary valuation metric. The trailing PE stands at 68.48x, while the forward PE is 15.28x, implying that the market expects a massive earnings increase over the next year, consistent with consensus EPS estimates of $29.78 for the next fiscal year. This wide gap between trailing and forward PE reflects the market's anticipation of continued rapid earnings growth, but also leaves little room for disappointment.
PE
68.5x
Latest Quarter
vs. Historical
High-End
5-Year PE Range 20x~76x
vs. Industry Avg
N/A
Industry PE ~N/A*
EV/EBITDA
52.7x
Enterprise Value Multiple