APP AppLovin Corporation - Fundamental Analysis
BEARISH
Sign in to save
Save this symbol to a watchlist or track a position.
APP Stock | Fundamental Analysis & Investment Insights
NASDAQ
Communication Services
Advertising Agencies
Current Price
Live
$458.67
Analyst Target
$648.57
+41.4%
Upside
52W High
$745.61
52W Low
$200.5
At a glance
Key valuation, profitability, growth, and risk metrics.
Updated Mar 14, 2026
Market cap
$155.01B
P/E
45.68
ROE
212.9%
Profit margin
60.8%
Debt/Equity
1.72
Dividend yield
N/A
AI Analysis
Powered by advanced machine learning algorithms
Confidence Score
85%
Analysis Accuracy
AppLovin (APP) exhibits strong profitability and growth metrics, with a Piotroski F-Score of 4/9 indicating borderline financial health, and no Altman Z-Score available, raising concerns about default risk. The stock trades at a premium valuation (P/E 45.68, Price/Sales 28.28) far above sector averages, despite a Graham Number of $37.75 and intrinsic value of $296.18, suggesting overvaluation. Insider selling of $90.62M in the last 6 months signals potential internal skepticism. While earnings growth (84.70% YoY) and margin strength (ROE 212.94%) are impressive, the lack of dividend, weak technical trend, and recent price decline (-21.2% over 6 months) compound downside risk.
Key Strengths
Exceptional profitability with gross margin of 87.86% and ROE of 212.94%
Strong revenue and earnings growth (65.90% and 84.70% YoY respectively)
Consistent earnings beat rate (3 out of last 4 quarters)
High operating margin of 76.92% and robust profit margin of 60.83%
Positive analyst consensus with a 'buy' recommendation from 28 analysts
Key Risks
Piotroski F-Score of 4/9 indicates weak financial health, signaling potential operational instability
Debt/Equity ratio of 1.72 is elevated, especially for a high-growth tech firm
Insider selling of $90.62M in 6 months with no buys, suggesting internal caution
Current price of $458.67 is significantly above both Graham Number ($37.75) and intrinsic value ($296.18), implying overvaluation
Technical trend is bearish (0/100), and 6-month price decline of -21.2% reflects recent weakness
AI Fair Value Estimate
Based on comprehensive analysis
$296.18
-35.4% below current price
Performance Snowflake
Multi-dimensional analysis across 5 key categories
Overall
46
Moderate
40
85
60
45
0
AI Verdict
neutral-to-bearish
Key drivers: High growth and profitability offset by weak financial health and overvaluation, Strong earnings momentum but deteriorating technical and insider sentiment, Valuation gap between intrinsic value and market price
Confidence
85%
Value
40/100
Stock trades at a massive premium to both Graham and intrinsic value benchmarks, reflecting high growth expectations but significant overvaluation risk.
Positives
- Intrinsic value estimate of $296.18 based on growth model
- Graham Number of $37.75 provides a conservative floor
Watchpoints
- Current price of $458.67 is 54% above intrinsic value and 1,168% above Graham Number
- P/E of 45.68 is nearly 2x the sector average of 21.95
- Price/Sales of 28.28 is extremely high for a growth stock
Future
85/100
Future growth prospects are compelling, but the sustainability of such high growth rates is uncertain given past volatility.
Positives
- 65.90% YoY revenue growth and 84.70% earnings growth indicate strong momentum
- Forward P/E of 22.64 is more reasonable than trailing P/E
- Recent Q/Q earnings growth of 84.00% shows acceleration
Watchpoints
- No PEG ratio available, limiting growth-adjusted valuation analysis
- Historical earnings volatility (e.g., -86.6% surprise in 2022) suggests inconsistency
Past
60/100
While recent performance is strong, past earnings inconsistency raises concerns about long-term predictability.
Positives
- 21 consecutive quarters of earnings data with 15 beats (71.4% beat rate)
- Recent quarters show improving consistency (3 out of 4 beats in last 4 quarters)
- Strong margin expansion over time
Watchpoints
- Significant earnings misses in 2022–2023 (e.g., -86.6% surprise in 2022 Q2)
- Negative surprises in 2024 Q2 and Q3 indicate potential execution issues
- Historical earnings volatility undermines reliability
Health
45/100
Despite strong liquidity, the low Piotroski score and missing Altman Z-Score suggest underlying financial instability.
Positives
- High current and quick ratios (3.32 and 3.23) indicate strong liquidity
- Positive operating cash flow (implied by high margins and growth)
Watchpoints
- Piotroski F-Score of 4/9 is below the stable threshold (4–6), indicating financial fragility
- Debt/Equity of 1.72 is high for a growth company, especially without a Z-Score to validate solvency
- No Altman Z-Score available, which is a critical red flag for default risk
Dividend
0/100
AppLovin is a growth-focused company with no dividend policy, which is typical for high-growth tech firms but limits appeal to income investors.
Positives
No standout positives identified.
Watchpoints
- No dividend yield or payout ratio (0.00%)
- Dividend strength score of 0/100 reflects no income generation
Stock Price & Analyst Targets
Real-time price movements and analyst price targets
Current Price
$458.67
Analyst Target
$648.57
Upside/Downside
+41.4%
Multi-Horizon Performance vs Peers
Price momentum across 5Y → 1W horizons for APP and closest competitors.
Updated 2026-03-13
| Company | 5Y | 3Y | 1Y | 6M | 1M | 1W |
|---|---|---|---|---|---|---|
|
APP
AppLovin Corporation
Primary
|
+603.5% | +3491.8% | +68.6% | -21.2% | +0.4% | -8.7% |
|
VZ
Verizon Communications Inc.
Peer
|
-7.4% | +16.8% | +8.4% | -1.4% | -3.2% | -2.2% |
|
T
AT&T Inc.
Peer
|
+48.6% | +43.5% | +11.3% | -10.8% | -2.4% | -0.9% |
|
DIS
The Walt Disney Company
Peer
|
-33.9% | +13.9% | +5.6% | -7.8% | +0.5% | -4.0% |
|
CMCSA
Comcast Corporation
Peer
|
-29.6% | -15.8% | -14.9% | -12.1% | -0.9% | -0.8% |
Positive values indicate cumulative gains over the specified period. Comparables pulled from the same sector to highlight whether momentum is stock-specific or industry-wide.
Historical Performance Trends
Long-term financial metrics and growth patterns
Revenue & Net Income
Profit & Operating Margins
Return on Equity (ROE)
Quarterly Revenue Growth
Historical data shows last 12 quarters (3 years)
Valuation Metrics
Key valuation ratios and pricing indicators
P/E Ratio
45.68
Forward P/E
22.64
PEG Ratio
N/A
P/B Ratio
72.69
P/S Ratio
28.28
EV/Revenue
28.44
EV/EBITDA
36.46
Market Cap
$155.01B
Profitability
Profit margins and return metrics
Profit Margin
60.83%
Operating Margin
76.92%
Gross Margin
87.86%
ROE
212.94%
ROA
39.53%
Growth
Revenue and earnings growth rates
Revenue Growth
+65.9%
Earnings Growth
+84.7%
Q/Q Revenue Growth
N/A
Q/Q Earnings Growth
+84.0%
Financial Health
Balance sheet strength and liquidity metrics
Debt/Equity
1.72
High debt
Current Ratio
3.32
Strong
Quick Ratio
3.23
Excellent
Cash/Share
$7.37
Quarterly Earnings History
EPS performance vs analyst estimates
2026-05-06
$N/A
2026-02-11
$3.48
+11.9% surprise
2025-11-05
$2.45
+2.6% surprise
2025-08-06
$2.36
+1.7% surprise
Communication Services Sector Comparison
Comparing APP against 36 companies in the Communication Services sector
(0 bullish, 17 neutral, 19 bearish)
P/E Ratio
45.68
This Stock
vs
21.75
Sector Avg
+110.0%
(Expensive)
Return on Equity (ROE)
212.94%
This Stock
vs
-7.47%
Sector Avg
-2950.4%
(Below Avg)
Profit Margin
60.83%
This Stock
vs
40.35%
Sector Avg
+50.7%
(Superior)
Debt to Equity
1.72
This Stock
vs
1.12
Sector Avg
+53.8%
(Higher)
Revenue Growth
65.9%
This Stock
vs
28.6%
Sector Avg
+130.4%
(Fast Growth)
Current Ratio
3.32
This Stock
vs
2.2
Sector Avg
+50.7%
(Stronger)
Similar Companies
Peer comparison within the same industry
| Company | AI Rating | Market Cap | P/E | ROE | Profit Margin | Price | |
|---|---|---|---|---|---|---|---|
|
APP
AppLovin Corporation
|
BEARISH | $155.01B | 45.68 | 212.9% | 60.8% | $458.67 | |
|
VZ
Verizon Communications Inc.
|
NEUTRAL | $164.06B | 8.3 | 19.9% | 14.4% | $38.91 | |
|
T
AT&T Inc.
|
NEUTRAL | $167.96B | 7.65 | 19.1% | 17.9% | $23.49 | |
|
DIS
The Walt Disney Company
|
NEUTRAL | $199.93B | 16.23 | 12.2% | 13.1% | $111.2 | |
|
CMCSA
Comcast Corporation
|
NEUTRAL | $109.64B | 4.62 | 24.2% | 18.3% | $27.82 |
Recent Insider Trading
Insider buy and sell transactions from the last 6 months
| Date | Insider | Position | Transaction | Shares | Value |
|---|---|---|---|---|---|
| 2026-03-10 | SHIKIN VASILY | Chief Technology Officer | Sale | 6,531 | $3,193,985 |
| 2026-03-04 | WEBB MAYNARD GEORGE JR | Director | Gift | 370 | - |
| 2026-02-13 | CHEN HERALD Y | Director | Gift | 100,000 | - |
| 2026-02-13 | CHEN HERALD Y | Director | Stock Award | 150,000 | - |
| 2026-01-15 | WEBB MAYNARD GEORGE JR | Director | Stock Award | 28 | - |
| 2025-12-18 | VALENZUELA VICTORIA | Officer | Sale | 7,609 | $5,000,102 |
| 2025-12-10 | VALENZUELA VICTORIA | Officer | Gift | 5,500 | - |
| 2025-12-09 | HARVEY DAWSON ALYSSA | Director | Gift | 50 | - |
| 2025-12-09 | CHEN HERALD Y | Director | Gift | 25,000 | - |
| 2025-12-08 | HARVEY DAWSON ALYSSA | Director | Sale | 150 | $103,998 |
| 2025-11-24 | SHIKIN VASILY | Chief Technology Officer | Sale | 27,143 | $14,803,141 |
| 2025-11-24 | SHIKIN VASILY | Chief Technology Officer | Sale | 4,889 | $2,691,080 |
| 2025-11-24 | SHIKIN VASILY | Chief Technology Officer | Sale | 2,061 | $1,119,456 |
| 2025-11-24 | SHIKIN VASILY | Chief Technology Officer | Sale | 5,292 | $2,874,388 |
| 2025-11-24 | SHIKIN VASILY | Chief Technology Officer | Sale | 15,540 | $8,532,891 |
Insider transactions can signal confidence or concerns about company prospects
Wall Street Analysts
Professional analyst ratings and price targets
Consensus
BUY
28 analysts
Needham
2026-03-11
Buy
Buy
Oppenheimer
2026-03-05
Outperform
Outperform
Jefferies
2026-02-12
Buy
Buy
Citigroup
2026-02-12
Buy
Buy
UBS
2026-02-12
Buy
Buy
RBC Capital
2026-02-12
Outperform
Outperform
Goldman Sachs
2026-02-12
Neutral
Neutral
Scotiabank
2026-02-12
Sector Outperform
Sector Outperform
Piper Sandler
2026-02-12
Overweight
Overweight
Wells Fargo
2026-02-12
Overweight
Overweight
Past News Coverage
Recent headlines mentioning APP from our newsroom.
Newest → oldest
No matching news yet.