Marketing Platform AppLovin (APP) is Under Loved Even as its Growth is Strong

/ By / APP
Stock (Symbol)

AppLovin (APP)
Stock Price

$431
Sector
Technology
Data is as of
February 20, 2026
Expected to Report
May 5
Company Description
AppLovin Corporation is a marketing platform.

The Company provides end-to-end software and artificial intelligence (AI) solutions for businesses to reach, monetize and grow their global audiences.

Its advertising solutions include a comprehensive suite of tools including AppDiscovery, MAX, Adjust, Wurl and Axon Ads Manager.

AppDiscovery is powered by AXON, its AI-powered advertising engine, and matches advertiser demand with publisher supply through auctions at vast scale and at microsecond-level speeds.

MAX is its monetization solution, utilizing an advanced in-app bidding technology that optimizes the value of a publisher’s advertising inventory by running a real-time competitive auction, driving more competition, and higher returns for publishers.

Adjust is its measurement and analytics marketing platform which provides marketers with the visibility, insights, and data needed to scale their apps marketing and drive more informed results.

Wurl is its connected TV (CTV) platform. Source: Refinitiv.
Sharek’s Take
David SharekAppLovin (APP), a leading video game marketing platform, continues to scale its AI engine Axon 2.0 as the central driver of performance. Axon 2.0 is the company’s machine-learning system that analyzes large amounts of advertising data to understand which ads are most likely to perform well. Axon 2.0 works by automatically showing the right ads to the right users and deciding how much each ad placement is worth. Management stated this leads to better results for advertisers and helps apps earn more money, which brings more activity and gives the system more data to improve. Because Axon 2.0 keeps learning and improving as usage grows, it strengthens the company’s efficiency, profitability, and long-term competitive advantage.

Founded in 2011 and headquartered in Palo Alto, California, AppLovin Corporation provides advertising technology that helps mobile app and game developers and advertisers market, monetize, and grow their apps. AppLovin’s platform is a suite of tools that enables advertisers to acquire users, run ad campaigns, and generate revenue through in-app advertisements. AppLovin previously operated a portfolio of owned mobile games through its Apps segment; however, the company sold that business in 2025 to focus entirely on its higher-margin advertising technology platform. The AppLovin Platform is comprised of four primary solutions, with revenue from Axon Ads Manager comprising almost all of the company’s total revenue:

  • Axon Ads Manager: the company’s core user acquisition solution powered by its Axon AI.
    • Axon AI matches advertiser demand with publisher supply through real-time auctions.
    • Advertisers set return-on-ad-spend goals, and pricing adjusts to meet those targets.
  • MAX: an in-app bidding and monetization platform that allows publishers to earn revenue by placing ads within their apps.
  • Adjust: an analytics marketing platform that provides performance tracking and reporting tools.
  • Wurl: a connected TV (CTV) platform that distributes streaming video for content companies and provides advertising as well as monetization solutions.
  • More recently, AppLovin has indicated plans to develop a consumer-facing social media platform, though this initiative is still in development and not yet a reported operating segment.

AppLovin is a stock I owned in the past, and last sold it from the Aggressive Growth Portfolio in February 2022 ~$56. At the time speculative stocks were out of favor. The company has been growing rapidly. Profits have grown gone from around $1 a share in 2023 to ~$10 in 2025, with estimates of ~$15 for this year (2026) and ~$20 for 2027. Analysts give APP an Estimated Long-Term Growth Rate of 47% a year. For 2025, the company repurchased and withheld $2.6 billion in stock. This quarter, the stock is $431, way down from its All-Time high of $746 set in September 2025. With high-growth stocks hot in the stock market right now, I will add APP to the Growth Portfolio and Focus List today as the company reports earnings after the stock market closes later today.
One Year Chart
APP stock recently peaked above $700 but has pulled back to the $450 area (shares are $458 today, above the $431 price when these charts/tables were creaded). The stock fell because investors are worried about an SEC investigation into how the company collects and uses data for ads. Also, AI advancements could disrupt APP’s business model.

With a P/E of 29, I think the stock is currently undervalued. I think the stock should have a 35 P/E.

APP has an Estimated Long-Term Growth Rate of 47%. That’s a big number.

Qtrly profit growth has been very good, and Estimates are solid.
Earnings Table
Last qtr, AppLovin reported 87% profit growth year-over-year. RManagement said revenue increased 66% year-over-year ($1.658 billion vs $999 million) but Refinitiv says it grew 21% ($1.658 billion vs $1.373 billion).

  • Management stated that the increase in revenue was driven by continued technology advancements to its core mobile gaming business, seasonal strength, and the expanding impact of its e-commerce initiative.
  • Management stated MAX Auction is a foundational piece of the ecosystem and it’s critical that it improves through competition, which in turn helps publishers make more money, leading to more user acquisition.

Annual Profit Estimates are looking great! But I don’t have past estimates as I haven’t covered the stock for a while.

Qtrly Profit Estimates are for 94%, 47%, 57%, and 37% profit growth the next 4 qtrs. as of March 13, 2026.  Revenue is expected to climb 19% next qtr (as of today, May 6, 2026).
Fair Value
APP is $431 this qtr with a P/E of 29.

My Fair Value is a P/E of 35, which is $695 a share, giving the good stock upside.

2027 Fair Value sits at $904 a share, giving the stock excellent upside.
Bottom Line
AppLovin (APP) had its IPO in April 2021 and the ten-year chart has been choppy. 

AppLovin isn’t getting a lot of respect right now. But I like the company and think its on the right track. But technology is ever-changing, and this stock could be a boom-or-bust selection.

APP will be added to the Growth Portfolio and rank 10th in the Power Rankings. The stock will also be added to the Focus List and rank 8th in the Power Rankings.
Power Rankings
Growth Stock Portfolio

10 of 29

Aggressive Growth Portfolio

8 of 18

Conservative Stock Portfolio

N/A

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