Key Takeaways AppLovin's AI-powered software platform supports revenue growth with relatively modest cost increases.APP leverages its technology across new markets, supporting margin expansion and scalable growth.APP's software model generates cash for AI innovation while strengthening its competitive position. One of AppLovin’s (APP - Free Report) greatest competitive strengths is the operating leverage embedded in its software-driven business model. Unlike businesses that require significant incremental investment to support growth, software platforms can serve a larger customer base with relatively modest increases in operating costs. As a result, a greater share of every additional dollar of revenue has the potential to translate into higher earnings.
AppLovin has increasingly shifted its business toward high-margin software solutions, particularly its AI-powered advertising platform. By relying on machine learning to improve ad targeting, campaign optimization and monetization, the company delivers greater value to advertisers without proportionately increasing its cost base. This allows profitability to improve as revenue expands, demonstrating the scalability of its platform.
The benefits of operating leverage become even more significant as AppLovin enters new markets. Whether supporting mobile gaming, e-commerce or other digital advertising categories, the company can extend its existing technology infrastructure across additional customers rather than building entirely new platforms for each opportunity. This creates an efficient growth model capable of generating expanding margins over time.
Another advantage of a software-centric business is its ability to reinvest from a position of strength. Strong cash generation provides flexibility to accelerate product innovation, enhance AI capabilities and pursue strategic initiatives while maintaining financial discipline. These investments can further improve the platform’s effectiveness, attract additional customers and reinforce the company's competitive position.
As digital advertising becomes increasingly dependent on AI-driven optimization, AppLovin’s scalable software platform positions it to benefit from both revenue growth and improved operating efficiency. This combination of expanding demand and inherent operating leverage could support durable earnings growth and strengthen the company’s long-term investment appeal.
How AppLovin Stacks Up Against Key U.S. PeersThe Trade Desk (TTD - Free Report) operates a leading demand-side platform built around programmatic advertising and data-driven targeting. While the company benefits from strong relationships with premium brands and advertisers, its margin profile tends to be more sensitive to fluctuations in advertising spending. In many ways, The Trade Desk focuses on scale and reach, while AppLovin concentrates more heavily on performance and efficiency.
Unity Software (U - Free Report) also participates in the advertising ecosystem through its real-time 3D platform and monetization tools for developers. However, Unity’s advertising business remains closely tied to the developer community and has been more volatile. Unlike AppLovin, Unity is still working to balance growth with consistent profitability, which makes AppLovin’s margin stability a notable differentiator among these peers.
APP’s Price Performance, Valuation and EstimatesThe stock has declined 41% year to date compared with the industry’s 6% fall.
Image Source: Zacks Investment Research
From a valuation standpoint, APP trades at a forward price-to-earnings ratio of 21.31, which is below the industry average of 21.39. It carries a Value Score of C.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for APP’s 2026 earnings has declined over the past 30 days.
APP currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
AppLovin is rated a Strong Buy, with a compelling entry point after a recent 17% price drop since prior coverage and robust growth prospects. Management guides for 53% revenue and 60% adjusted EBITDA growth YoY, driven by digital advertising tailwinds and APP's advanced AXON and MAX platforms. Competitive threats from Meta, Google, and Amazon are real, but APP's distinct market position and partnerships support a profitable second-channel thesis.
, /PRNewswire/ -- Pomerantz LLP is investigating claims on behalf of investors of AppLovin Corporation ("AppLovin" or the "Company") (NASDAQ: APP). Such investors are advised to contact Danielle Peyton at [email protected] or 646-581-9980, ext. 7980.
The investigation concerns whether AppLovin and certain of its officers and/or directors have engaged in securities fraud or other unlawful business practices.
[Click here for information about joining the class action]
On July 13, 2026, a Bank of America Securities analyst published a note reporting softer-than-expected e-commerce ad growth for the month of June, raising concerns over the rollout of AppLovin's new AI-driven merchant platform.
Following publication of the note, AppLovin's stock price fell $64.13 per share, or 12.65%, to close at $442.85 per share on July 13, 2026.
Pomerantz LLP, with offices in New York, Chicago, Los Angeles, London, Paris, and Tel Aviv, is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, Pomerantz pioneered the field of securities class actions. Today, more than 85 years later, Pomerantz continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered numerous multimillion-dollar damages awards on behalf of class members. See www.pomlaw.com.
Attorney advertising. Prior results do not guarantee similar outcomes.
AppLovin (APP - Free Report) ended the recent trading session at $412.48, demonstrating a -3.78% change from the preceding day's closing price. This move lagged the S&P 500's daily loss of 0.14%. Meanwhile, the Dow experienced a drop of 0.01%, and the technology-dominated Nasdaq saw a decrease of 0.57%.
Shares of the mobile app technology company witnessed a loss of 8.21% over the previous month, trailing the performance of the Business Services sector with its gain of 4.1%, and the S&P 500's gain of 0.25%.
Market participants will be closely following the financial results of AppLovin in its upcoming release. The company plans to announce its earnings on August 5, 2026. The company is expected to report EPS of $3.72, up 64.6% from the prior-year quarter. In the meantime, our current consensus estimate forecasts the revenue to be $1.94 billion, indicating a 53.99% growth compared to the corresponding quarter of the prior year.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $15.93 per share and a revenue of $8.24 billion, indicating changes of +58.67% and +41.98%, respectively, from the former year.
It is also important to note the recent changes to analyst estimates for AppLovin. These revisions typically reflect the latest short-term business trends, which can change frequently. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.28% decrease. Right now, AppLovin possesses a Zacks Rank of #3 (Hold).
Looking at its valuation, AppLovin is holding a Forward P/E ratio of 26.92. Its industry sports an average Forward P/E of 16.41, so one might conclude that AppLovin is trading at a premium comparatively.
One should further note that APP currently holds a PEG ratio of 0.7. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Technology Services industry had an average PEG ratio of 1.44 as trading concluded yesterday.
The Technology Services industry is part of the Business Services sector. At present, this industry carries a Zacks Industry Rank of 98, placing it within the top 40% of over 250 industries.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.
AppLovin (APP +1.01%) has been one of the biggest winners on the stock market since 2022 as the company has gone from a mobile-game maker to an adtech powerhouse after leveraging the ad tools it built inside its games.
Its ad business has been so successful that it sold off its mobile games business last year and is now a pure-play adtech company. However, the AI boom has brought a mixed bag for the company, and it's been pressured by the broader worries about disruption in the software sector. AI is a key component of Axon, its AI-powered advertising engine, but investors also seem to believe its competitive advantage is more vulnerable as AI tools become more widely embraced.
As a result, the stock slipped 24% through the first half of the year, according to data from S&P Global Market Intelligence. As you can see from the chart below, the stock pulled back in the first two months of the year, and then mostly traded sideways.
APP data by YCharts
What's happening with AppLovin A number of factors weighed on the stock to start the year. It faced a short-seller attack from CapitalWatch, which alleged that the company was avoiding typical anti-money-laundering controls and being financially unscrupulous in other ways. The company pushed back on the claims, calling them "false, misleading, and nonsensical." It's also faced similar short reports in the past, though none of the allegations have stuck.
Additionally, mobile game-related stocks initially fell after Google announced Project Genie, a new platform for AI game creation, which potentially threatens the app-based game ecosystem, which includes AppLovin, as much of its business comes from ads that run on mobile games.
AppLovin then plunged in February after it reported fourth-quarter earnings, even though it beat estimates. Revenue jumped 66% to $1.66 billion, and earnings per share nearly doubled to $3.24.
Nonetheless, the results were not enough to push the stock higher, especially due to signs that Meta Platforms was planning on competing for untracked ad traffic on Apple's iOS that it had historically ignored.
AppLovin redeemed itself in the first-quarter report in May as the stock moved up 6% after another round of strong results and rapid growth.
Image source: Getty Images.
What's next for AppLovin Despite fears about disruption from AI, Meta, or other weaknesses, AppLovin has continued to deliver impressive results. It generates blockbuster profit margins, a sign of competitive advantage, and it has begun repurchasing stock, showing management confidence in future growth.
If AppLovin maintains its current momentum, the stock will eventually bounce back.
UiPath's AI orchestration strategy, improving profitability and attractive valuation make it stand out over AppLovin despite both benefiting from AI adoption.
NEW YORK, July 21, 2026 (GLOBE NEWSWIRE) -- Pomerantz LLP is investigating claims on behalf of investors of AppLovin Corporation (“AppLovin” or the “Company”) (NASDAQ: APP). Such investors are advised to contact Danielle Peyton at [email protected] or 646-581-9980, ext. 7980.
The investigation concerns whether AppLovin and certain of its officers and/or directors have engaged in securities fraud or other unlawful business practices.
[Click here for information about joining the class action]
On July 13, 2026, a Bank of America Securities analyst published a note reporting softer-than-expected e-commerce ad growth for the month of June, raising concerns over the rollout of AppLovin’s new AI-driven merchant platform.
Following publication of the note, AppLovin’s stock price fell $64.13 per share, or 12.65%, to close at $442.85 per share on July 13, 2026.
Pomerantz LLP, with offices in New York, Chicago, Los Angeles, London, Paris, and Tel Aviv, is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, Pomerantz pioneered the field of securities class actions. Today, more than 85 years later, Pomerantz continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered numerous multimillion-dollar damages awards on behalf of class members. See www.pomlaw.com.
Attorney advertising. Prior results do not guarantee similar outcomes.
AppLovin (APP - Free Report) has recently been on Zacks.com's list of the most searched stocks. Therefore, you might want to consider some of the key factors that could influence the stock's performance in the near future.
Shares of this mobile app technology company have returned -9.5% over the past month versus the Zacks S&P 500 composite's -0.6% change. The Zacks Technology Services industry, to which AppLovin belongs, has lost 6.8% over this period. Now the key question is: Where could the stock be headed in the near term?
While media releases or rumors about a substantial change in a company's business prospects usually make its stock 'trending' and lead to an immediate price change, there are always some fundamental facts that eventually dominate the buy-and-hold decision-making.
Earnings Estimate RevisionsRather than focusing on anything else, we at Zacks prioritize evaluating the change in a company's earnings projection. This is because we believe the fair value for its stock is determined by the present value of its future stream of earnings.
We essentially look at how sell-side analysts covering the stock are revising their earnings estimates to reflect the impact of the latest business trends. And if earnings estimates go up for a company, the fair value for its stock goes up. A higher fair value than the current market price drives investors' interest in buying the stock, leading to its price moving higher. This is why empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
AppLovin is expected to post earnings of $3.72 per share for the current quarter, representing a year-over-year change of +64.6%. Over the last 30 days, the Zacks Consensus Estimate has changed -0.2%.
For the current fiscal year, the consensus earnings estimate of $15.93 points to a change of +58.7% from the prior year. Over the last 30 days, this estimate has changed -0.3%.
For the next fiscal year, the consensus earnings estimate of $20.89 indicates a change of +31.2% from what AppLovin is expected to report a year ago. Over the past month, the estimate has changed -0.7%.
Having a strong externally audited track record, our proprietary stock rating tool, the Zacks Rank, offers a more conclusive picture of a stock's price direction in the near term, since it effectively harnesses the power of earnings estimate revisions. Due to the size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, AppLovin is rated Zacks Rank #3 (Hold).
The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:
12 Month EPS
Revenue Growth ForecastEven though a company's earnings growth is arguably the best indicator of its financial health, nothing much happens if it cannot raise its revenues. It's almost impossible for a company to grow its earnings without growing its revenue for long periods. Therefore, knowing a company's potential revenue growth is crucial.
In the case of AppLovin, the consensus sales estimate of $1.94 billion for the current quarter points to a year-over-year change of +54%. The $8.24 billion and $10.59 billion estimates for the current and next fiscal years indicate changes of +42% and +28.4%, respectively.
Last Reported Results and Surprise HistoryAppLovin reported revenues of $1.84 billion in the last reported quarter, representing a year-over-year change of +24.2%. EPS of $3.56 for the same period compares with $1.67 a year ago.
Compared to the Zacks Consensus Estimate of $1.77 billion, the reported revenues represent a surprise of +3.86%. The EPS surprise was +4.71%.
The company beat consensus EPS estimates in each of the trailing four quarters. The company topped consensus revenue estimates each time over this period.
ValuationNo investment decision can be efficient without considering a stock's valuation. Whether a stock's current price rightly reflects the intrinsic value of the underlying business and the company's growth prospects is an essential determinant of its future price performance.
While comparing the current values of a company's valuation multiples, such as price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), with its own historical values helps determine whether its stock is fairly valued, overvalued, or undervalued, comparing the company relative to its peers on these parameters gives a good sense of the reasonability of the stock's price.
As part of the Zacks Style Scores system, the Zacks Value Style Score (which evaluates both traditional and unconventional valuation metrics) organizes stocks into five groups ranging from A to F (A is better than B; B is better than C; and so on), making it helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.
AppLovin is graded C on this front, indicating that it is trading at par with its peers. Click here to see the values of some of the valuation metrics that have driven this grade.
ConclusionThe facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about AppLovin. However, its Zacks Rank #3 does suggest that it may perform in line with the broader market in the near term.
Andra AP fonden lowered its holdings in shares of AppLovin Corporation (NASDAQ:APP – Free Report) by 37.9% during the first quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The firm owned 64,666 shares of the company’s stock after selling 39,497 shares during the quarter. Andra AP fonden’s holdings in AppLovin were worth $25,737,000 at the end of the most recent quarter.
Other institutional investors have also modified their holdings of the company. Cassaday & Co Wealth Management LLC acquired a new position in shares of AppLovin in the first quarter valued at approximately $25,000. Commerzbank Aktiengesellschaft FI lifted its position in AppLovin by 7.9% in the 1st quarter. Commerzbank Aktiengesellschaft FI now owns 3,028 shares of the company’s stock valued at $1,205,000 after acquiring an additional 222 shares in the last quarter. Meeder Advisory Services Inc. boosted its stake in AppLovin by 5.8% in the 1st quarter. Meeder Advisory Services Inc. now owns 4,450 shares of the company’s stock worth $1,771,000 after purchasing an additional 244 shares during the period. WCM Investment Management LLC boosted its stake in AppLovin by 5.2% in the 1st quarter. WCM Investment Management LLC now owns 5,001,600 shares of the company’s stock worth $1,860,995,000 after purchasing an additional 245,290 shares during the period. Finally, KBC Group NV increased its holdings in AppLovin by 2.1% during the 1st quarter. KBC Group NV now owns 255,447 shares of the company’s stock worth $101,667,000 after purchasing an additional 5,223 shares in the last quarter. Institutional investors own 41.85% of the company’s stock.
Analysts Set New Price Targets A number of analysts have recently commented on the company. Needham & Company LLC restated a “buy” rating and issued a $700.00 price target on shares of AppLovin in a report on Thursday, May 28th. Morgan Stanley reissued an “overweight” rating on shares of AppLovin in a research report on Wednesday, May 27th. Argus began coverage on AppLovin in a research note on Tuesday, April 14th. They issued a “buy” rating and a $520.00 target price on the stock. Benchmark reaffirmed a “buy” rating on shares of AppLovin in a research report on Wednesday, June 10th. Finally, Wells Fargo & Company raised their price target on shares of AppLovin from $571.00 to $575.00 and gave the stock an “overweight” rating in a research note on Tuesday, July 7th. Two equities research analysts have rated the stock with a Strong Buy rating, seventeen have assigned a Buy rating and five have given a Hold rating to the company. According to data from MarketBeat.com, the company currently has an average rating of “Moderate Buy” and an average target price of $668.45.
Check Out Our Latest Analysis on APP
AppLovin Trading Up 0.0% AppLovin stock opened at $424.60 on Tuesday. The company has a market cap of $142.64 billion, a price-to-earnings ratio of 36.48, a P/E/G ratio of 0.69 and a beta of 2.49. The firm has a 50-day moving average of $504.94 and a 200-day moving average of $485.82. The company has a debt-to-equity ratio of 1.49, a current ratio of 3.24 and a quick ratio of 3.24. AppLovin Corporation has a one year low of $343.00 and a one year high of $745.61.
AppLovin (NASDAQ:APP – Get Free Report) last posted its quarterly earnings results on Wednesday, May 6th. The company reported $3.56 earnings per share for the quarter, topping the consensus estimate of $3.44 by $0.12. AppLovin had a return on equity of 219.37% and a net margin of 64.29%.The firm had revenue of $1.84 billion for the quarter, compared to analyst estimates of $1.77 billion. During the same quarter in the previous year, the firm earned $1.67 EPS. The business’s quarterly revenue was up 58.9% on a year-over-year basis. On average, equities analysts expect that AppLovin Corporation will post 15.93 earnings per share for the current fiscal year.
Insider Activity In other AppLovin news, CEO Arash Adam Foroughi sold 33,042 shares of the business’s stock in a transaction that occurred on Thursday, June 11th. The stock was sold at an average price of $486.95, for a total transaction of $16,089,801.90. Following the transaction, the chief executive officer owned 2,369,351 shares of the company’s stock, valued at $1,153,755,469.45. The trade was a 1.38% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, insider Victoria Valenzuela sold 20,000 shares of the firm’s stock in a transaction on Thursday, June 4th. The shares were sold at an average price of $565.89, for a total value of $11,317,800.00. Following the sale, the insider directly owned 243,961 shares of the company’s stock, valued at $138,055,090.29. This represents a 7.58% decrease in their position. The SEC filing for this sale provides additional information. Over the last quarter, insiders have sold 393,000 shares of company stock valued at $197,297,363. 12.81% of the stock is owned by insiders.
AppLovin Company Profile (Free Report)
AppLovin Corporation is a Palo Alto–based mobile technology company that provides software and services to help app developers grow and monetize their businesses. The company operates a data-driven advertising and marketing platform that connects app publishers and advertisers, delivering tools for user acquisition, monetization, analytics and creative optimization. AppLovin’s technology is integrated into a broad set of mobile applications through software development kits (SDKs) and ad products designed to maximize revenue and engagement for developers.
Key components of AppLovin’s offering include an ad mediation and exchange platform that enables publishers to manage and monetize inventory across multiple demand sources, and a user-acquisition platform that helps advertisers target and scale campaigns.
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AppLovin remains a Strong Buy, with its long-term bull case intact despite recent underperformance versus the benchmark. APP is undervalued, supported by premium margins, a robust capital structure, and strong historical earnings. I see digital ad market growth as not fully priced into APP, offering further upside potential.
Allspring Global Investments Holdings LLC decreased its holdings in shares of AppLovin Corporation (NASDAQ:APP – Free Report) by 16.7% during the 1st quarter, according to its most recent 13F filing with the Securities and Exchange Commission. The firm owned 182,002 shares of the company’s stock after selling 36,588 shares during the period. Allspring Global Investments Holdings LLC owned approximately 0.05% of AppLovin worth $70,588,000 at the end of the most recent reporting period.
Other large investors have also modified their holdings of the company. Vanguard Group Inc. grew its position in AppLovin by 0.7% during the fourth quarter. Vanguard Group Inc. now owns 25,120,575 shares of the company’s stock worth $16,926,746,000 after buying an additional 166,117 shares during the period. State Street Corp increased its position in shares of AppLovin by 0.4% in the fourth quarter. State Street Corp now owns 11,904,843 shares of the company’s stock valued at $8,021,721,000 after buying an additional 52,377 shares in the last quarter. Geode Capital Management LLC raised its stake in shares of AppLovin by 6.7% during the 4th quarter. Geode Capital Management LLC now owns 7,167,003 shares of the company’s stock worth $4,817,269,000 after buying an additional 448,005 shares during the last quarter. Price T Rowe Associates Inc. MD raised its stake in shares of AppLovin by 3.6% during the 4th quarter. Price T Rowe Associates Inc. MD now owns 6,089,735 shares of the company’s stock worth $4,103,386,000 after buying an additional 212,349 shares during the last quarter. Finally, Morgan Stanley boosted its position in shares of AppLovin by 10.7% in the 4th quarter. Morgan Stanley now owns 5,561,646 shares of the company’s stock worth $3,747,551,000 after buying an additional 538,806 shares in the last quarter. 41.85% of the stock is owned by hedge funds and other institutional investors.
AppLovin Trading Down 2.3% NASDAQ APP opened at $424.54 on Friday. The firm has a market capitalization of $142.62 billion, a PE ratio of 36.47, a price-to-earnings-growth ratio of 0.71 and a beta of 2.49. The company has a 50-day simple moving average of $506.01 and a 200-day simple moving average of $489.19. AppLovin Corporation has a one year low of $343.00 and a one year high of $745.61. The company has a debt-to-equity ratio of 1.49, a quick ratio of 3.24 and a current ratio of 3.24.
AppLovin (NASDAQ:APP – Get Free Report) last announced its quarterly earnings results on Wednesday, May 6th. The company reported $3.56 earnings per share (EPS) for the quarter, topping the consensus estimate of $3.44 by $0.12. AppLovin had a return on equity of 219.37% and a net margin of 64.29%.The business had revenue of $1.84 billion for the quarter, compared to the consensus estimate of $1.77 billion. During the same quarter last year, the business posted $1.67 EPS. The business’s revenue was up 58.9% on a year-over-year basis. On average, equities analysts forecast that AppLovin Corporation will post 15.93 earnings per share for the current year.
Insider Buying and Selling In related news, CEO Arash Adam Foroughi sold 33,042 shares of the stock in a transaction on Thursday, June 11th. The stock was sold at an average price of $486.95, for a total transaction of $16,089,801.90. Following the completion of the sale, the chief executive officer directly owned 2,369,351 shares in the company, valued at approximately $1,153,755,469.45. This trade represents a 1.38% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, Director Eduardo Vivas sold 163,910 shares of the firm’s stock in a transaction dated Tuesday, June 16th. The stock was sold at an average price of $504.06, for a total value of $82,620,474.60. Following the sale, the director directly owned 6,785,087 shares of the company’s stock, valued at $3,420,090,953.22. This trade represents a 2.36% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders have sold 393,000 shares of company stock valued at $197,297,363 in the last three months. Insiders own 13.66% of the company’s stock.
Wall Street Analyst Weigh In APP has been the subject of several research reports. Raymond James Financial assumed coverage on AppLovin in a research report on Monday, June 29th. They set a “strong-buy” rating and a $640.00 price objective for the company. UBS Group dropped their price objective on AppLovin from $740.00 to $716.00 and set a “buy” rating for the company in a research report on Thursday, May 7th. Weiss Ratings raised shares of AppLovin from a “hold (c)” rating to a “hold (c+)” rating in a research note on Wednesday, July 8th. Needham & Company LLC reaffirmed a “buy” rating and set a $700.00 price target on shares of AppLovin in a research note on Thursday, May 28th. Finally, Argus began coverage on shares of AppLovin in a report on Tuesday, April 14th. They set a “buy” rating and a $520.00 price target for the company. Two research analysts have rated the stock with a Strong Buy rating, seventeen have issued a Buy rating and five have given a Hold rating to the company. According to MarketBeat.com, the company presently has an average rating of “Moderate Buy” and a consensus price target of $668.45.
Get Our Latest Research Report on APP
AppLovin Company Profile (Free Report)
AppLovin Corporation is a Palo Alto–based mobile technology company that provides software and services to help app developers grow and monetize their businesses. The company operates a data-driven advertising and marketing platform that connects app publishers and advertisers, delivering tools for user acquisition, monetization, analytics and creative optimization. AppLovin’s technology is integrated into a broad set of mobile applications through software development kits (SDKs) and ad products designed to maximize revenue and engagement for developers.
Key components of AppLovin’s offering include an ad mediation and exchange platform that enables publishers to manage and monetize inventory across multiple demand sources, and a user-acquisition platform that helps advertisers target and scale campaigns.
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, /PRNewswire/ -- Pomerantz LLP is investigating claims on behalf of investors of AppLovin Corporation ("AppLovin" or the "Company") (NASDAQ: APP). Such investors are advised to contact Danielle Peyton at [email protected] or 646-581-9980, ext. 7980.
The investigation concerns whether AppLovin and certain of its officers and/or directors have engaged in securities fraud or other unlawful business practices.
[Click here for information about joining the class action]
On July 13, 2026, a Bank of America Securities analyst published a note reporting softer-than-expected e-commerce ad growth for the month of June, raising concerns over the rollout of AppLovin's new AI-driven merchant platform.
Following publication of the note, AppLovin's stock price fell $64.13 per share, or 12.65%, to close at $442.85 per share on July 13, 2026.
Pomerantz LLP, with offices in New York, Chicago, Los Angeles, London, Paris, and Tel Aviv, is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, Pomerantz pioneered the field of securities class actions. Today, more than 85 years later, Pomerantz continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered numerous multimillion-dollar damages awards on behalf of class members. See www.pomlaw.com.
Attorney advertising. Prior results do not guarantee similar outcomes.
AppLovin (NASDAQ:APP | APP Price Prediction) is now a pure-play, AI-driven advertising platform generating profitability metrics that stand alongside the biggest names in software, even as the market still categorizes it as a “mobile gaming roll-up.”
A Literal Business Pivot AppLovin sold its entire Apps and mobile-gaming portfolio to Tripledot Studios, closing the deal on June 30, 2025, for roughly $400 million in cash plus an approximately 20% equity stake. The games business is gone from the operating results. What remains is the Axon advertising engine and a balance sheet that looks nothing like a hit-driven app studio.
The Margins Tell the Real Story In the most recently reported quarter, revenue reached $1.84 billion, up 59% year over year, with operating income of $1.44 billion and an operating margin of 78%. GAAP net margin came in at 65%, and adjusted EBITDA margin hit 85%. These are Big Tech-caliber margins.
CFO Matt Stumpf framed it plainly: “Margins expanded approximately 400 basis points from the same period last year. Quarter-over-quarter flow-through to adjusted EBITDA was 86%, again, reflecting the operating leverage of our model.”
Operating Leverage from the AI Engine Full-year 2025 revenue landed at $5.48 billion (+16.4% year on year) with net income of $3.33 billion (+111% year on year). In Q2 2025, R&D fell 56% year on year and S&M fell 30%, even as revenue grew 77%. Four consecutive quarterly beats have followed. CEO Adam Foroughi noted: “We continue to grow this business very quickly despite the numbers getting much bigger, and we are doing it while margins keep expanding.”
A Capital-Light Cash Machine Q1 free cash flow of $1.29 billion was generated on just $413,000 in capital expenditures. The company returned $1.0 billion via buybacks (2.2 million shares) in the quarter alone, with roughly $2.3 billion remaining under authorization.
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Investors curious about the broader shift in AI-adjacent software winners can see our related research at 7 Stocks Powering the AI Boom (That Aren’t Chipmakers).
The Risks of a Premium Platform Shares trade at a trailing P/E of 38 and a beta of 2.48. The stock is down 33.4% year to date to $448.98, against a 52-week range of $343.00 to $745.61. FY2025 also included a $188.9 million goodwill impairment tied to the pivot. Analyst consensus target is $654.60.
Retail is catching on. A February 2026 Reddit thread titled “$APP Has Gone from Overvalued to Now Cheap?” drove sustained bullish sentiment. The category-leader thesis remains intact; the stock simply needs the market to update its label.
This article is for informational purposes only and does not constitute investment advice.
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NEW YORK, July 14, 2026 (GLOBE NEWSWIRE) -- Pomerantz LLP is investigating claims on behalf of investors of AppLovin Corporation (“AppLovin” or the “Company”) (NASDAQ: APP). Such investors are advised to contact Danielle Peyton at [email protected] or 646-581-9980, ext. 7980.
The investigation concerns whether AppLovin and certain of its officers and/or directors have engaged in securities fraud or other unlawful business practices.
[Click here for information about joining the class action]
On July 13, 2026, a Bank of America Securities analyst published a note reporting softer-than-expected e-commerce ad growth for the month of June, raising concerns over the rollout of AppLovin’s new AI-driven merchant platform.
Following publication of the note, AppLovin’s stock price fell $64.13 per share, or 12.65%, to close at $442.85 per share on July 13, 2026.
Pomerantz LLP, with offices in New York, Chicago, Los Angeles, London, Paris, and Tel Aviv, is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, Pomerantz pioneered the field of securities class actions. Today, more than 85 years later, Pomerantz continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered numerous multimillion-dollar damages awards on behalf of class members. See www.pomlaw.com.
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AppLovin Corporation (NASDAQ:APP) is climbing higher on Tuesday. The bounce comes after a sell-off yesterday following negative comments from Bank of America.
As you can see on the chart, the move lower yesterday ended when it reached support around the $442 level. But this morning, the stock is bouncing back up. This is why AppLovin is the Stock of the Day.
Support is a price at which there is a large amount of demand for a stock. There are so many buyers that downtrends end when they reach support.
$442 was support in April. Then it was support in June.
There can be support at levels that had been support before. This is a result of investor psychology.
Some of the people who sold around $442 in April regretted it when a rally followed. Many of them made the decision to buy their shares back if they could eventually repurchase them at their selling price.
When AppLovin dropped back to this level in June, they placed buy orders. This created support at the price again.
If a large number of people try to buy their shares back at the sale price, it could result in support forming at that level again. This could put a floor under the price.
If the stock moves lower, it may end around $372.50. As you can see on the chart, this price was support in February and April.
APP Stock Price Activity: AppLovin shares were up 2.20% at $452.61 at the time of publication on Tuesday, according to Benzinga Pro data.
Photo: Shutterstock
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AppLovin (APP) remains a strong buy as it navigates a recent selling frenzy as it launches its self-serve ad engine into general availability. APP's growth hinges on expanding beyond gaming into the much larger consumer and e-commerce verticals, furthering its TAM and sustaining 20–30% long-term growth. Margins remain robust (84%+ adj. EBITDA), but further expansion is constrained by data center and AI costs as APP scales into new verticals.
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Yes, AppLovin (NASDAQ:APP | APP Price Prediction) has already made someone rich. The stock is up 1,473.18% over the three years ending July 13, 2026, turning a $10,000 stake into more than $150,000. If you watched it happen from the sidelines, the question now is whether entering at $453.57 makes you a latecomer or simply late to a still-running story. The answer, based on the numbers, is that there is still time, but the setup is very different from what the early buyers got.
Valuation: Expensive, but Not Unhinged AppLovin trades at a trailing P/E of 44 and a forward P/E of 32. Rich, but not extreme for a company printing 75.75% operating margins and 60.83% net margins. Free cash flow yield sits at 2.91%, which is meaningful given free cash flow grew 54.71% year over year in the most recent quarter.
Notably, the stock is cheaper today than it was six months ago. Shares are down 34.28% year to date and 18.56% in the last week alone, with the price sitting well below the 200-day moving average of $537.40. The 1,428% run happened. The post-run digestion is happening right now.
Forward Catalyst: A Pure-Play Ad Tech Machine The Q1 2026 report was the clearest evidence yet that the AXON 2 engine is compounding. Revenue hit $1.84 billion, up 24.15% year over year, and operating income more than doubled to $1.44 billion. Management guided Q2 revenue to $1.915 billion to $1.945 billion with adjusted EBITDA margins of 84% to 85%. Those are software-company margins on an advertising business.
The June 2025 divestiture of the Apps business to Tripledot Studios for $400M in cash plus roughly 20% equity made AppLovin a pure-play ad tech company. That matters because the direct competitor, The Trade Desk (NASDAQ:TTD), is going the other way. Trade Desk’s Q1 revenue growth decelerated to 11.82%, margins compressed, and the stock is down 77.51% over the same three-year window. AppLovin is taking share.
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The August 5, 2026 Q2 earnings report is the next hard catalyst. Analysts carry an average price target of $654.60, with 29 buy or strong-buy ratings versus 3 holds and zero sells.
Risk and Entry: What Downside Looks Like From Here The downside case runs through beta and expectations. AppLovin’s beta of 2.48 means broad market weakness hits this stock roughly two and a half times harder. The 52-week range of $343.00 to $745.61 shows how violent both directions can be. A miss on August 5 or softer Q3 guidance could easily retest the $343 low. That is a real risk for a retirement-focused investor.
Sentiment sits in neutral territory, with a composite score of 56.84 and a 30-day trend down 7.66 points. That is actually constructive: it means the froth has come out. The balance sheet backs the case, with $2.76 billion in cash, net debt to EBITDA of 0.24, and $1.0 billion returned via buybacks in Q1 alone.
The Verdict There is still time. The 1,428% move belongs to earlier buyers, but AppLovin is now a lower-priced, higher-quality, pure-play ad tech leader trading below its 200-day average while a diminished competitor validates the thesis by losing ground. Investors weighing entry may want to consider the August 5 earnings report as the next binary catalyst, sized appropriately for a beta-2.48 stock amplifying any reaction.
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AppLovin (APP - Free Report) closed at $442.85 in the latest trading session, marking a -12.65% move from the prior day. The stock fell short of the S&P 500, which registered a loss of 0.79% for the day. Meanwhile, the Dow experienced a drop of 0.26%, and the technology-dominated Nasdaq saw a decrease of 1.55%.
Prior to today's trading, shares of the mobile app technology company had gained 2.06% lagged the Business Services sector's gain of 4.59% and the S&P 500's gain of 4.28%.
The investment community will be paying close attention to the earnings performance of AppLovin in its upcoming release. The company is slated to reveal its earnings on August 5, 2026. In that report, analysts expect AppLovin to post earnings of $3.72 per share. This would mark year-over-year growth of 64.6%. Meanwhile, the latest consensus estimate predicts the revenue to be $1.94 billion, indicating a 53.99% increase compared to the same quarter of the previous year.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $15.93 per share and revenue of $8.24 billion. These totals would mark changes of +58.67% and +41.98%, respectively, from last year.
Investors should also note any recent changes to analyst estimates for AppLovin. These revisions help to show the ever-changing nature of near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Based on our research, we believe these estimate revisions are directly related to near-term stock moves. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the past month, there's been a 0.28% fall in the Zacks Consensus EPS estimate. At present, AppLovin boasts a Zacks Rank of #3 (Hold).
With respect to valuation, AppLovin is currently being traded at a Forward P/E ratio of 31.83. This expresses a premium compared to the average Forward P/E of 16.97 of its industry.
We can additionally observe that APP currently boasts a PEG ratio of 0.82. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The Technology Services industry currently had an average PEG ratio of 1.51 as of yesterday's close.
The Technology Services industry is part of the Business Services sector. At present, this industry carries a Zacks Industry Rank of 109, placing it within the top 45% of over 250 industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.
Applovin stock is feeling bearish pressure. Why are APP shares down? A Bank of America Data Point Adds PressureApplovin stood out from the rest of the software group after a Bank of America analysis, based on third‑party tracking, showed a slower pace of e‑commerce advertising growth in June. The company added about 750 new pixels compared with about 950 in May, according to Barron’s.
Risk‑Off Tape, Risk‑On ValuationTechnology is down 2.48% and ranks last among the eleven sectors, which is another way of saying the market is selling the highest duration names first. Even with market breadth still positive with an advance‑decline ratio of 1.8, leadership is coming from defensive areas. Energy is up 3.39%, and that rotation tends to lean heavily on momentum‑sensitive software and internet stocks that thrive when liquidity is abundant and patience is high.
APP’s Chart Is Not Helping BullsThe technical setup is adding fuel to what was already a risk-off spark. APP trades 9.8% below its 20-day SMA at $499.23 and 11.2% below its 50-day SMA at $507.31, which keeps the near‑term structure pointed lower. More importantly, it sits 16% under the 200-day SMA at $536.40, which reinforces the market’s habit of treating rallies as inventory to sell rather than a trend to chase.
The larger warning sign is the death cross that formed in March when the 50-day SMA moved below the 200-day SMA, often a sign that the intermediate regime has shifted from buying dips to selling strength. June registered as both a swing high and a swing low, a neat summary of a stock that has been chopping through volatility instead of building a clean base.
Momentum is not offering much relief. MACD is below its signal line and the histogram is negative, which points to fading upside pressure. Buyers do not have control right now, and they will need to take it back quickly to prevent the slide from becoming self‑fulfilling.
Key levels are straightforward and unforgiving. Resistance sits at $473.00, a pivot area that also aligns with the 100-day SMA at $472.38, making it the first real test on any bounce. Support sits at $418.50. If that level breaks, the downside conversation naturally shifts toward the lower end of the 52-week range at $332.32.
What the Benzinga Edge Scorecard Is SayingAPP Shares Are PlungingAPP Price Action: Applovin shares were down 11.65% at $447.93 at the time of publication on Monday, according to Benzinga Pro.
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AppLovin (NASDAQ:APP | APP Price Prediction) is getting hammered Monday, sliding 12%. Despite significant research, there is no confirmed company-specific catalyst: no downgrade, no 8-K, no guidance revision. APP is caught in a broad AI and semiconductor risk-off session.
What’s Driving the Selloff The pain is sector-wide. NVIDIA (NASDAQ:NVDA) is off 3%, Broadcom (NASDAQ:AVGO) is down more than 3%, and Advanced Micro Devices (NASDAQ:AMD) has slid nearly 4%. The Invesco QQQ Trust (NASDAQ:QQQ) is down 21.77%. As a high-multiple AI ad-tech name trading at a high valuation, APP is exactly the profile that gets sold hardest when the AI trade cools.
Context: Pullback, Not Collapse Fundamentals remain intact. Q1 2026 delivered EPS of $3.56 on revenue of $1.842 billion, up 24% year-over-year, with an 85% adjusted EBITDA margin and $1.0 billion in buybacks. Recent insider selling has been concentrated but reflects pre-arranged Rule 10b5-1 plans, not a bearish signal. Shares are still up over 40% over the past year even after this session.
The Profit Angle APP’s put/call ratio sits at a balanced 0.93, and the analyst target price of $654.60 implies significant upside from here. Keep an eye on NVIDIA as the bellwether and QQQ for broader tech sentiment. High-beta AI names snap back quickly once the sector risk-off unwinds.
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AppLovin: Rapid Revenue ExpansionAppLovin (APP 2.61%) provides specialized software infrastructure designed to help mobile application developers market their creations efficiently, optimize their ad campaigns, and generate consistent advertising income worldwide.
It launched a new social networking application called Gist alongside ongoing regulatory inquiries, and reported a net income margin of 65% for the quarter ended March 31, 2026.
Fastly: Gradual Revenue IncreasesFastly (FSLY 3.64%) offers an advanced edge cloud computing infrastructure designed to efficiently manage, distribute, and secure digital applications for a wide array of clients across global markets.
It launched a new data center facility in West Florida while addressing a performance incident in Tokyo, and recorded a net income margin of -12% for the quarter ended March 31, 2026.
Why Revenue Matters for Retail InvestorsRevenue serves as the fundamental measure of total sales and indicates a business's ability to attract paying customers before operating expenses are deducted.
Quarterly Revenue for AppLovin and FastlyQuarter (Period End)AppLovin RevenueFastly RevenueQ2 2024 (June 2024)$711.0 million$132.4 millionQ3 2024 (Sept. 2024)$835.2 million$137.2 millionQ4 2024 (Dec. 2024)$1.4 billion$140.6 millionQ1 2025 (March 2025)$1.2 billion$144.5 millionQ2 2025 (June 2025)$1.3 billion$148.7 millionQ3 2025 (Sept. 2025)$1.4 billion$158.2 millionQ4 2025 (Dec. 2025)$1.7 billion$172.6 millionQ1 2026 (March 2026)$1.8 billion$173.0 millionData source: Company filings. Data as of July 10, 2026.
Foolish TakeIn comparing the revenue trends for AppLovin and Fastly, the former is clearly a beast. Its sales rose every quarter in 2025, and in the first quarter of 2026, its revenue skyrocketed a whopping 59% year over year.
Meanwhile, Fastly’s Q1 sales represented excellent year-over-year growth of 20%. However, its stock fell in May after it forecasted 2026 sales to come in between $710 million to $725 million.
If Fastly reached the top of that range, it would be about a 16% year-over-year increase over 2025 revenue of $624 million. That growth did not impress Wall Street, leading to a stock sell-off.
AppLovin expects its Q2 sales to continue the trend of quarter-over-quarter increases, forecasting about $1.9 billion. The company’s incredible revenue expansion demonstrates the lucrative nature of the mobile advertising market.
Consequently, AppLovin stock trades at a very high valuation versus Fastly. At a price-to-sales ratio of 28, AppLovin is expensive compared to Fastly’s sales multiple of four. While Fastly isn’t the fast one when it comes to revenue growth, its slow and steady expansion through high-margin products enabled the company to achieve record first-quarter gross margin of 62.5%.
AppLovin Corp (NASDAQ:APP) is gaining share of e-commerce advertising budgets as brands increase spending on the platform, according to a Jefferies survey of advertisers using the company’s advertising technology in the second quarter of 2026.
Jefferies surveyed 30 e-commerce and web advertisers using AppLovin in 2Q26 and found that AppLovin’s share of advertiser budgets increased by 169 basis points compared with the fourth quarter of 2025, reaching 11.1% of spend in 2026.
The firm noted that AppLovin maintained its position among the top three advertising networks by both budget share and return on ad spend (ROAS), ranking just ahead of TikTok.
The survey found that TikTok also gained share during the period, while Meta and Google accounted for most of the budget share losses. Jefferies wrote that the shift was primarily driven by advertisers diversifying incremental ad spend toward platforms including AppLovin and TikTok rather than reducing spending on Meta and Google.
The survey captured a greater proportion of advertisers that had joined AppLovin in the fourth quarter of 2025, with those advertisers representing 23% of respondents compared with 7% in Jefferies’ previous survey. The firm noted that these newer advertisers have continued to scale spending throughout 2026.
Jefferies also highlighted improving feedback on AppLovin’s generative artificial intelligence tools. Half of surveyed advertisers had tested AI-generated end cards, half had tested AI-generated video, and one-third had tested full campaign setup using generative AI features.
The firm wrote that feedback on AI-generated video was particularly positive, with six advertisers reporting ROAS improvements. Advertisers cited the ease of use and ability to test multiple videos as benefits. Jefferies noted that prior feedback on AppLovin’s AI video product had been more muted, making the latest results an incremental positive.
Feedback on AI-generated end cards was mixed, with advertisers describing the tool as intuitive and easy to use, though only four respondents reported performance improvements. For full campaign setup, advertisers focused more on improved speed and campaign launch efficiency rather than direct performance gains, according to Jefferies.
Advertisers surveyed also raised their expectations for direct-to-consumer ad spending growth in 2026. Respondents now expect total DTC ad spend to increase 15% year-over-year, up from an 8% growth expectation in Jefferies’ first-quarter survey. The group reported 12% spending growth in the second quarter and expects a similar pace in the third quarter.
AppLovin’s prospecting and discovery campaigns also showed improvement in the survey. Jefferies found that 73% of respondents reported an increase in new customer revenue from prospecting campaigns, up from 60% in the prior survey, while the percentage seeing a significant increase rose to 30% from 13%. For discovery campaigns, 60% of advertisers reported increased benefits, compared with 50% previously.
Jefferies’ survey cohort represented more than $1.2 billion in direct-to-consumer advertising spend and at least $7.1 billion in gross merchandise value, based on the firm’s estimates.
Shares of AppLovin traded hands at $514 on Friday, down almost 24% so far this year.
AppLovin (APP - Free Report) has been one of the most searched-for stocks on Zacks.com lately. So, you might want to look at some of the facts that could shape the stock's performance in the near term.
Shares of this mobile app technology company have returned +8.8% over the past month versus the Zacks S&P 500 composite's +2.2% change. The Zacks Technology Services industry, to which AppLovin belongs, has gained 0.6% over this period. Now the key question is: Where could the stock be headed in the near term?
While media releases or rumors about a substantial change in a company's business prospects usually make its stock 'trending' and lead to an immediate price change, there are always some fundamental facts that eventually dominate the buy-and-hold decision-making.
Earnings Estimate RevisionsRather than focusing on anything else, we at Zacks prioritize evaluating the change in a company's earnings projection. This is because we believe the fair value for its stock is determined by the present value of its future stream of earnings.
Our analysis is essentially based on how sell-side analysts covering the stock are revising their earnings estimates to take the latest business trends into account. When earnings estimates for a company go up, the fair value for its stock goes up as well. And when a stock's fair value is higher than its current market price, investors tend to buy the stock, resulting in its price moving upward. Because of this, empirical studies indicate a strong correlation between trends in earnings estimate revisions and short-term stock price movements.
AppLovin is expected to post earnings of $3.72 per share for the current quarter, representing a year-over-year change of +64.6%. Over the last 30 days, the Zacks Consensus Estimate has changed -0.2%.
For the current fiscal year, the consensus earnings estimate of $15.93 points to a change of +58.7% from the prior year. Over the last 30 days, this estimate has changed -0.3%.
For the next fiscal year, the consensus earnings estimate of $20.89 indicates a change of +31.2% from what AppLovin is expected to report a year ago. Over the past month, the estimate has changed -0.7%.
With an impressive externally audited track record, our proprietary stock rating tool -- the Zacks Rank -- is a more conclusive indicator of a stock's near-term price performance, as it effectively harnesses the power of earnings estimate revisions. The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #2 (Buy) for AppLovin.
The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:
12 Month EPS
Revenue Growth ForecastEven though a company's earnings growth is arguably the best indicator of its financial health, nothing much happens if it cannot raise its revenues. It's almost impossible for a company to grow its earnings without growing its revenue for long periods. Therefore, knowing a company's potential revenue growth is crucial.
In the case of AppLovin, the consensus sales estimate of $1.94 billion for the current quarter points to a year-over-year change of +54%. The $8.24 billion and $10.59 billion estimates for the current and next fiscal years indicate changes of +42% and +28.4%, respectively.
Last Reported Results and Surprise HistoryAppLovin reported revenues of $1.84 billion in the last reported quarter, representing a year-over-year change of +24.2%. EPS of $3.56 for the same period compares with $1.67 a year ago.
Compared to the Zacks Consensus Estimate of $1.77 billion, the reported revenues represent a surprise of +3.86%. The EPS surprise was +4.71%.
The company beat consensus EPS estimates in each of the trailing four quarters. The company topped consensus revenue estimates each time over this period.
ValuationWithout considering a stock's valuation, no investment decision can be efficient. In predicting a stock's future price performance, it's crucial to determine whether its current price correctly reflects the intrinsic value of the underlying business and the company's growth prospects.
Comparing the current value of a company's valuation multiples, such as its price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), to its own historical values helps ascertain whether its stock is fairly valued, overvalued, or undervalued, whereas comparing the company relative to its peers on these parameters gives a good sense of how reasonable its stock price is.
As part of the Zacks Style Scores system, the Zacks Value Style Score (which evaluates both traditional and unconventional valuation metrics) organizes stocks into five groups ranging from A to F (A is better than B; B is better than C; and so on), making it helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.
AppLovin is graded C on this front, indicating that it is trading at par with its peers. Click here to see the values of some of the valuation metrics that have driven this grade.
ConclusionThe facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about AppLovin. However, its Zacks Rank #2 does suggest that it may outperform the broader market in the near term.
Shares of AppLovin (APP 1.00%) were moving lower last month, even after several positive analyst notes, as headwinds in the software sector weighed on the stock.
While AppLovin isn't a traditional software-as-a-service (SaaS) company, the stock has tracked with the sector this year as it trades at a high valuation, and some investors believe it faces AI disruption risks similar to those of the big cloud software companies.
As a result, AppLovin finished last month down 16%, according to data from S&P Global Market Intelligence. As you can see from the chart below, the stock trended with the iShares Expanded Tech-Software Sector ETF (IGV 1.75%), in which it's one of the top ten holdings.
APP data by YCharts
Investors sour on software again There was no major company-specific news out on AppLovin last month, but it couldn't escape the headwinds around the broader software sector.
Early in the month, disappointing earnings reports from companies like Salesforce, Adobe, and Oracle fed ongoing concerns about AI disruption, which may have been fueled by the fervor around the SpaceX IPO, and fears of rising interest rates following Kevin Warsh's first FOMC meeting also pressured the software sector lower.
As a high-growth stock, AppLovin is sensitive to interest rates, so it makes sense that it would pull back on signs that rates were going up, but it hasn't exhibited any AI-related slowdown, and it has a much different business model than SaaS leaders like Salesforce and Adobe.
Additionally, smaller rival Liftoff Mobile went public in early June, which could have prompted some selling in AppLovin as investors rotate to that stock or due to concerns that Liftoff will have more money to challenge AppLovin following the public offering.
Despite the sell-off, AppLovin received several Wall Street endorsements last month.
Citigroup opened an "upside 90-day catalyst watch" on the stock, and said the company could top estimates, driven by its e-commerce platform moving to general availability, though it removed the catalyst watch later in the month.
Edgewater Research upgraded the stock from neutral to outperform, and Raymond James initiated coverage with a strong buy and a price target of $640.
Image source: Getty Images.
AppLovin has been a volatile stock over the last year, more than doubling at one point before giving up nearly all of those gains.
It's trading at a high valuation, but it has the growth to back it up as analysts expect revenue to jump 54% in the second quarter to $1.94 billion and for earnings per share to increase from $2.39 to $3.75.
AppLovin is now trading at a forward P/E of just 33. If it can maintain its growth rate, the adtech stock should move higher.
Citigroup is an advertising partner of Motley Fool Money. Jeremy Bowman has positions in AppLovin. The Motley Fool has positions in and recommends Adobe, Oracle, and Salesforce. The Motley Fool recommends the following options: long January 2028 $330 calls on Adobe and short January 2028 $340 calls on Adobe. The Motley Fool has a disclosure policy.
AppLovin has delivered extraordinary returns, up 1,227% since May 2022, far outpacing the S&P 500. Recent Q1 results show 59% revenue growth to $1.84 billion, driven by Axon Ads Manager's 93% net revenue per install increase despite an 18% install volume decline. Margins expanded as the cost of revenue fell to 11.05% and sales/marketing costs dropped to 3.3% of sales, boosting net income to $1.21 billion.
Key Takeaways APP delivered record Q1 2026 revenues of $1.84 billion, up 59% year over year.AppLovin posted an 85% adjusted EBITDA margin and a 65% net margin in its latest quarter.APP trades at premium valuation multiples, supporting a hold stance despite strong fundamentals. Despite delivering strong operational performance, AppLovin (APP - Free Report) has seen its stock decline roughly 19% year to date. The weakness reflects shifting market sentiment toward high-growth technology stocks rather than any visible deterioration in the company’s fundamentals. While investors have grown cautious about valuation and broader macroeconomic uncertainty, AppLovin continues to execute at a remarkably high level.
Image Source: Zacks Investment Research
The company remains one of the fastest-growing names in digital advertising, supported by artificial intelligence-driven ad optimization, expanding monetization capabilities and improving profitability. As the stock trades well below its recent highs, investors may need to determine whether the recent correction reflects a fundamental concern or simply a disconnect between price action and business performance.
AI-Powered Advertising Continues to Drive APP’s Revenue GrowthAppLovin’s growth story remains firmly intact, with demand for its AI-powered advertising and app monetization platform continuing to accelerate.
Quarterly revenues climbed steadily from $406 million in the second quarter of 2023 to nearly $1 billion by the fourth quarter of 2024. The momentum strengthened further throughout 2025, with quarterly revenues consistently exceeding $1 billion while maintaining sequential growth.
The company carried that momentum into the first quarter of 2026, reporting record quarterly revenues of $1.84 billion, representing an impressive 59% year-over-year increase.
This sustained expansion reflects increasing adoption of AppLovin’s AI-enhanced advertising solutions, particularly improvements driven by its Axon platform. The company has also broadened its reach beyond its traditional gaming customer base into larger e-commerce and digital advertising markets, creating new opportunities for long-term expansion.
As advertisers increasingly rely on AI-powered targeting, campaign optimization and monetization tools to improve returns on advertising spend, AppLovin continues to strengthen its position within one of the fastest-growing segments of the digital advertising industry.
Margin Expansion Is Becoming APP’s StrengthAlthough rapid revenue growth continues to attract investor attention, AppLovin’s profitability may represent its greatest long-term strength.
The company is increasingly generating revenue from higher-margin software offerings, allowing a much larger percentage of incremental sales to flow directly to the bottom line. This favorable business mix, combined with disciplined cost management, has significantly improved operating efficiency over the past several quarters.
During its latest reported quarter, AppLovin delivered an adjusted EBITDA margin of 85%, expanding 100 basis points from the prior-year period. Net margin improved even more dramatically, rising 1,500 basis points to 65%.
These figures demonstrate that AppLovin is not merely growing rapidly; it is scaling efficiently. Many technology companies can deliver strong top-line expansion, but far fewer can convert that growth into substantial profitability.
The company’s operating leverage suggests its business model becomes increasingly profitable as revenues continue to expand, reinforcing the quality and durability of its earnings profile.
Analyst Projections Signal Fundamental StrengthAnalyst expectations reflect continued optimism. The Zacks Consensus Estimate for second-quarter 2026 earnings is pegged at $3.72 per share, indicating a 65% increase from the year-ago period. Revenue for the same quarter is expected to reach $1.94 billion, indicating 54% year-over-year growth. Looking further ahead, full-year 2026 earnings are projected to increase 59%, with 2027 earnings expected to rise an additional 32%. Revenues are also expected to increase 42% in 2026 and 29.5% in 2027. These projections underscore confidence in the company’s monetization engine and its ability to deliver strong earnings amid digital ad market expansion.
APP Valuation Appears ElevatedAPP currently trades at a forward P/E multiple of 29.29, noticeably above the industry average of 22.11.
Image Source: Zacks Investment Research
Its forward price-to-sales ratio of 19.21 also stands far above the industry benchmark of 2.89, indicating that investor expectations for future growth remain extremely aggressive.
Image Source: Zacks Investment Research
When stocks trade at premium valuation levels, even modest growth slowdowns or softer guidance can lead to significant multiple compression. Consequently, APP shares could remain vulnerable if market sentiment shifts or expectations are revised lower.
Comparing APP With Major U.S. Advertising Technology RivalsThe Trade Desk (TTD - Free Report) operates a demand-side advertising platform centered around programmatic advertising and advanced audience targeting capabilities. Although The Trade Desk benefits from strong exposure to premium advertising brands, its profitability profile tends to be more cyclical and sensitive to broader advertising spending trends compared with AppLovin. While TTD prioritizes scale and reach, AppLovin remains more focused on performance optimization and monetization efficiency.
Unity Software (U - Free Report) also maintains exposure to digital advertising through its real-time 3D platform and monetization offerings. However, Unity Software’s advertising operations remain closely connected to developer ecosystems and have historically demonstrated greater volatility. Unlike AppLovin, Unity Software continues to balance profitability objectives alongside growth expansion, making AppLovin’s consistent margin profile a notable competitive advantage among peers.
Hold Rating Appears AppropriateAppLovin continues to execute exceptionally well, supported by robust demand for its AI-powered advertising platform, expanding profitability, and favorable long-term growth prospects. The company has consistently demonstrated its ability to scale efficiently while strengthening its competitive position across the digital advertising ecosystem. However, much of this optimism appears reflected in the stock's premium valuation, leaving limited room for disappointment if growth moderates or market sentiment weakens. Although the long-term outlook remains compelling, the current risk-reward profile suggests investors should adopt a wait-and-watch approach. APP appears appropriately rated as a Hold while investors monitor future execution and valuation trends.
APP carries a Zacks Rank #3 (Hold) at present. You can see the complete list of today’s Zacks Rank #1 (Strong Buy) stocks here.
Is the high-speed growth of mobile advertising a better bet than the scaling of enterprise artificial intelligence? This comparison evaluates AppLovin (APP 6.53%) and Palantir Technologies (PLTR +2.99%) to see which stock fits your portfolio.
AppLovin specializes in software for mobile app discovery and monetization, while Palantir provides high-end data analytics and intelligence platforms. Both companies are leveraging advanced machine learning to drive revenue, yet they serve very different markets and face unique regulatory and operational hurdles in the current year.
The case for AppLovinAppLovin provides software solutions that help mobile app developers grow their businesses through automated advertising and user acquisition. The company relies heavily on major platforms like the Apple App Store, and customer concentration like this adds a layer of risk to the business. AppLovin operates in a competitive corner of the tech stocks landscape where speed and efficiency are paramount.
In its 2025 fiscal year (FY), revenue reached $5.5 billion, representing a significant 70% increase over the previous year. This rapid growth helped the company achieve net income of $3.3 billion, resulting in a strong net margin of 60.8%. These results were largely driven by the success of its advertising technology across the global mobile ecosystem.
As of its December 2025 balance sheet, the debt-to-equity ratio was 1.7x, which measures total debt against shareholder equity to show how a company funds its operations. The current ratio, which measures the ability to cover short-term liabilities with liquid assets, stood at a healthy 3.3x. The company also generated free cash flow of $3.9 billion, which is the cash a company generates after accounting for the money spent on capital assets.
Palantir Technologies builds software platforms, for example Foundry and Gotham, that help large organizations integrate and analyze complex data for better decision-making. The company serves a diverse mix of government agencies and commercial enterprises, including a strategic partnership with Nvidia to provide sovereign artificial intelligence tools. While expanding its reach, the business maintains a deep reliance on cloud infrastructure provided by Amazon and Microsoft.
During FY 2025, Palantir reported revenue of $4.5 billion, marking a 56.2% jump from the prior year. This expansion translated into net income of $1.6 billion and a net margin of 36.3%. Growth has been particularly strong in the commercial sector as more businesses adopt its artificial intelligence platform to automate internal workflows.
The company's balance sheet as of December 2025 shows a debt-to-equity ratio of zero, indicating it has no debt relative to its equity. Its current ratio was 7.1x, which means the company has more than seven times the assets needed to cover its short-term debts. Palantir generated $2.1 billion in free cash flow, though stock-based compensation (SBC) represented 32% of operating cash flow, which inflates reported cash generation since SBC is a non-cash expense.
Risk profile comparisonAppLovin faces legal challenges, including a major class-action lawsuit filed in May 2026 alleging illegal user tracking in the Netherlands. The business also deals with shifting privacy policies from app stores such as Apple’s, which could limit its ability to target ads effectively. Furthermore, intense competition from Unity Software and a high reliance on its founding CEO present ongoing operational risks.
Palantir is navigating an investigation regarding potential federal securities law violations related to its NGC2 platform disclosures. The company also faces the risk of unpredictable government contract cycles and the technical challenge of preventing AI hallucinations in high-stakes environments. Additionally, any disruptions to service from its primary cloud providers could immediately impair the functionality of its core software platforms.
Valuation comparisonAppLovin appears significantly more affordable based on its revenue multiples, while Palantir carries a much higher premium than the broader market.
MetricAppLovinPalantir TechnologiesSector BenchmarkForward P/E35.1x90.0x35.7xP/S ratio34.6x67.1xn/aSector benchmark uses the SPDR XLK sector ETF. Valuation metrics sourced from Financial Modeling Prep (FMP) and may differ from other data providers.
Which stock would I buy in 2026?Both AppLovin and Palantir have benefited from artificial inteliigence. The former uses AI to optimize the performance of ads on behalf of its customers, while the latter provides AI platforms to businesses and governments. This has helped them produce outsized sales growth that is forecasted to continue.
AppLovin estimates revenue in the second quarter will reach about $1.9 billion, up from the prior year’s $1.3 billion. Palantir forecasted Q2 sales of around $1.8 billion, nearly double 2025’s $1 billion. With both companies doing well, deciding which to invest in is a difficult choice.
AppLovin’s focus on digital advertising leaves it vulnerable to cycle downturns experienced by the ad industry from time to time. Palantir’s reliance on government income leaves it vulnerable to budget cuts, although it is building up a rapidly-growing commercial business.
Palantir’s stock nosedived in June to a 52-week low of $106.37 as its sky-high valuation led to investors cashing in. Despite the price drop, shares still sport an elevated valuation compared to AppLovin, as the comparison of P/S and forward P/E ratios above illustrates. Consequently, AppLovin’s superior valuation gives it the edge as the better stock to buy in 2026.
Robert Izquierdo has positions in Amazon, Apple, Microsoft, Nvidia, Palantir Technologies, and Unity Software. The Motley Fool has positions in and recommends Amazon, Apple, Microsoft, Nvidia, Palantir Technologies, and Unity Software. The Motley Fool has a disclosure policy.
Mr. Market was expressing some affection for AppLovin (APP 6.65%) over the past few trading days. Shares of the adtech company were rising by over 10% week to date as of late Thursday evening. A highly positive initiation of coverage from an analyst was a major reason for the pop.
One strong move by a pundit This occurred Monday morning, when Andrew Marok of Raymond James launched his tracking of AppLovin's equity with a strong buy recommendation. Consistent with this highly optimistic rating, he set a price target of $640 per share on the specialized tech stock. That's more than 21% higher than its most recent closing price.
Image source: Getty Images.
According to reports, a key reason for Marok's bullishness is his general view that the e-commerce advertising market will continue to expand. That's fortunate for AppLovin, as in late June the company effectively opened its self-serve platform to all advertisers (previously, a referral was required).
The platform's new name, AppLovin Ads, is buttressed by the greatly expanded Axon artificial intelligence (AI) model that powers it. Having moved from its previous narrow focus on mobile gaming, the platform is now available as a tool for the immense and ever-growing e-commerce crowd.
The analyst added that he's expecting revenue growth of over 40%, accompanied by earnings before interest, taxes, depreciation, and amortization (EBITDA) margins topping 80%.
Today's Change
(
-6.65
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-37.55
Current Price
$
527.06
Pricey but worth it I think the thrust of Marok's argument is compelling and realistic. AppLovin is rapidly becoming a double threat, with its core mobile app advertising business and its continued push into e-commerce making for quite a potentially high-growth combination. This stock isn't cheap, either on price or valuations, but it's one of those companies that has an excellent chance of justifying such levels.
Eric Volkman has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
PALO ALTO, Calif.--(BUSINESS WIRE)--AppLovin Corporation, (NASDAQ: APP) (“AppLovin” or the “Company”) the leading marketing platform, today announced it will report financial results for the second quarter ended June 30, 2026 on Wednesday, August 5, 2026 after the U.S. stock market closes.
An accompanying webinar will take place at 2:00 PM PT / 5:00 PM ET on August 5, 2026 during which management will discuss the Company’s quarterly results and provide commentary on business performance. The webinar will be hosted by Adam Foroughi, Co-founder and Chief Executive Officer, and Matthew Stumpf, Chief Financial Officer.
The webinar may be accessed on the Company’s website at: https://investors.applovin.com or via webinar registration. A replay of the webcast will also be available under the Events & Presentations section of the Company’s Investor Relations website.
About AppLovin
AppLovin makes technologies that help businesses of every size connect to their ideal customers. The company provides end-to-end advertising solutions for businesses to reach, monetize and grow their global audiences. For more information about AppLovin, visit: www.applovin.com.
Insiders are making notable trades across several tech stocks. This includes the newest quantum stock on the market, which is seeing significant insider purchases right out of the gate. Meanwhile, insiders are selling two other notable software companies. However, when it comes to analyst forecasts, upside is something that all three have in common.
Get AppLovin alerts:
AppLovin CEO Sells More Than $50 Million in Discretionary MoveFirst up is advertising technology giant AppLovin NASDAQ: APP. This name stormed onto the stock market scene in 2024, delivering a massive return of over 700%. The company added to this with a return of over 100% in 2025. However, AppLovin has had a much more difficult stretch in 2026, down 25%. This stems from multiple factors, including AppLovin’s high valuation in 2025 and general software stock weakness. Notably, in Q4 2025, AppLovin traded at a forward price-to-earnings ratio as high as 59x. That figure has since fallen to around 31x.
AppLovin Today
$513.60 +14.84 (+2.98%)
As of 12:02 PM Eastern
This is a fair market value price provided by Massive. Learn more.
52-Week Range$325.58▼
$745.61P/E Ratio44.13
Price Target$668.27
Additionally, the most prominent executive, CEO Adam Foroughi, is selling shares. Overall, Foroughi has sold approximately $51 million worth of AppLovin shares in June. Notably, none of these sales came under a predetermined 10b5-1 plan, indicating that they were discretionary.
However, this is relatively common for Foroughi—he made other large non-10b5-1 sales in March 2026 and November 2025. Furthermore, Foroughi continues to hold a massive stake in AppLovin. After these reported sales, he holds over 2.3 million shares for a total value of more than $1 billion at recent prices. Despite the CEO making substantial and discretionary insider sales, the moves are not particularly concerning given these mitigating factors.
Quantinuum: Insiders Spend Big on Quantum’s NewcomerQuantinuum NASDAQ: QNT is the new kid on the block when it comes to quantum computing stocks. The company recently completed its IPO, opening at $60 per share. Since then, the stock has put up solid gains, rising more than 15%. Notably, many insiders increased their stakes in the company right after the IPO, purchasing at the $60 price. Overall, more than 10 separate insiders purchased shares, with total buys totaling nearly $25 million.
Quantinuum Today
$74.73 +1.89 (+2.59%)
As of 11:46 AM Eastern
52-Week Range$50.10▼
$81.48Price Target$98.75
This is interesting, considering that insiders tend to already have large positions in their company prior to the IPO. In fact, insiders often look to offload their shares after an IPO to gain liquidity. In turn, these buys send more bullish signals than standard insider purchases.
While Quantinuum shares have risen substantially versus their opening price, those gains have not been massive to date, making it more likely than not that insiders will continue to see long-term upside.
Nonetheless, Quantinuum faces risks similar to those of many quantum stocks. Most notable is the firm’s valuation and cash burn. The company generated $5.2 million in revenue in Q1, posted a net loss of $136.6 million, yet has a market capitalization of around $19 billion. This reflects the long-term expectation of many investors that quantum computing will one day become a large and profitable industry. Amid this journey, the U.S. government is providing support for the industry.
ServiceTitan’s Insider Sales Rise, But Remain Far Below 2025 LevelsServiceTitan NASDAQ: TTAN went public in 2024 and was one of the more hotly anticipated IPOs at the time. The company provides cloud-based software that brings technology to the trades. Targeting industries like plumbing, roofing, and carpentry, ServiceTitan’s software provides sales, marketing, customer management, and job scheduling solutions.
ServiceTitan Today
$70.04 -0.16 (-0.23%)
As of 12:01 PM Eastern
This is a fair market value price provided by Massive. Learn more.
52-Week Range$54.17▼
$119.99Price Target$110.53
After delivering a meager 3.5% gain in 2025, the market has crushed ServiceTitan shares in 2026, with the stock down more than 30%. Much of this has come due to the general software sell-off.
The firm has also seen a meaningful rise in insider sales in Q2, with the majority of these sales coming in late June. Overall, total sales of $16 million in Q2 are up significantly from less than $7 million in Q1. Furthermore, none of these sales came under a 10b5-1 plan.
It is important to note that ServiceTitan’s overall insider sales still remain very far below their peak. In Q3 2025, ServiceTitan’s insider sales were $172 million. Given this, the company’s recent sales are not overly worrisome. Meanwhile, ServiceTitan continues to grow revenues by more than 20% and improve its profitability significantly. In its latest quarter, adjusted operating margin more than doubled versus the prior year, from 7.5% to 15.2%.
Analysts Eye Big Gains Across AppLovin, Quantinuum, and ServiceTitanNotably, Wall Street analysts are forecasting significant gains across all three of these stocks. For ServiceTitan, the MarketBeat consensus price target is near $110, implying more than 55% upside. For AppLovin, analysts are projecting upside north of 30%, with the MarketBeat consensus price target near $668. Meanwhile, a plethora of analysts recently initiated coverage on Quantinuum. The average of these targets is just under $99, also implying upside of more than 35%.
Should You Invest $1,000 in AppLovin Right Now?Before you consider AppLovin, you'll want to hear this.
MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. MarketBeat has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and AppLovin wasn't on the list.
While AppLovin currently has a Moderate Buy rating among analysts, top-rated analysts believe these five stocks are better buys.
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AppLovin (APP - Free Report) is one of the stocks most watched by Zacks.com visitors lately. So, it might be a good idea to review some of the factors that might affect the near-term performance of the stock.
Over the past month, shares of this mobile app technology company have returned -22.2%, compared to the Zacks S&P 500 composite's -2.9% change. During this period, the Zacks Technology Services industry, which AppLovin falls in, has lost 5.6%. The key question now is: What could be the stock's future direction?
While media releases or rumors about a substantial change in a company's business prospects usually make its stock 'trending' and lead to an immediate price change, there are always some fundamental facts that eventually dominate the buy-and-hold decision-making.
Earnings Estimate RevisionsRather than focusing on anything else, we at Zacks prioritize evaluating the change in a company's earnings projection. This is because we believe the fair value for its stock is determined by the present value of its future stream of earnings.
We essentially look at how sell-side analysts covering the stock are revising their earnings estimates to reflect the impact of the latest business trends. And if earnings estimates go up for a company, the fair value for its stock goes up. A higher fair value than the current market price drives investors' interest in buying the stock, leading to its price moving higher. This is why empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
AppLovin is expected to post earnings of $3.72 per share for the current quarter, representing a year-over-year change of +64.6%. Over the last 30 days, the Zacks Consensus Estimate remained unchanged.
The consensus earnings estimate of $15.97 for the current fiscal year indicates a year-over-year change of +59.1%. This estimate has remained unchanged over the last 30 days.
For the next fiscal year, the consensus earnings estimate of $21.05 indicates a change of +31.8% from what AppLovin is expected to report a year ago. Over the past month, the estimate has remained unchanged.
Having a strong externally audited track record, our proprietary stock rating tool, the Zacks Rank, offers a more conclusive picture of a stock's price direction in the near term, since it effectively harnesses the power of earnings estimate revisions. Due to the size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, AppLovin is rated Zacks Rank #3 (Hold).
The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:
12 Month EPS
Revenue Growth ForecastWhile earnings growth is arguably the most superior indicator of a company's financial health, nothing happens as such if a business isn't able to grow its revenues. After all, it's nearly impossible for a company to increase its earnings for an extended period without increasing its revenues. So, it's important to know a company's potential revenue growth.
For AppLovin, the consensus sales estimate for the current quarter of $1.94 billion indicates a year-over-year change of +54.1%. For the current and next fiscal years, $8.26 billion and $10.69 billion estimates indicate +42.3% and +29.4% changes, respectively.
Last Reported Results and Surprise HistoryAppLovin reported revenues of $1.84 billion in the last reported quarter, representing a year-over-year change of +24.2%. EPS of $3.56 for the same period compares with $1.67 a year ago.
Compared to the Zacks Consensus Estimate of $1.77 billion, the reported revenues represent a surprise of +3.86%. The EPS surprise was +4.71%.
The company beat consensus EPS estimates in each of the trailing four quarters. The company topped consensus revenue estimates each time over this period.
ValuationNo investment decision can be efficient without considering a stock's valuation. Whether a stock's current price rightly reflects the intrinsic value of the underlying business and the company's growth prospects is an essential determinant of its future price performance.
While comparing the current values of a company's valuation multiples, such as price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), with its own historical values helps determine whether its stock is fairly valued, overvalued, or undervalued, comparing the company relative to its peers on these parameters gives a good sense of the reasonability of the stock's price.
The Zacks Value Style Score (part of the Zacks Style Scores system), which pays close attention to both traditional and unconventional valuation metrics to grade stocks from A to F (an A is better than a B; a B is better than a C; and so on), is pretty helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.
AppLovin is graded C on this front, indicating that it is trading at par with its peers. Click here to see the values of some of the valuation metrics that have driven this grade.
Bottom LineThe facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about AppLovin. However, its Zacks Rank #3 does suggest that it may perform in line with the broader market in the near term.
When deciding whether to buy, sell, or hold a stock, investors often rely on analyst recommendations. Media reports about rating changes by these brokerage-firm-employed (or sell-side) analysts often influence a stock's price, but are they really important?
Before we discuss the reliability of brokerage recommendations and how to use them to your advantage, let's see what these Wall Street heavyweights think about AppLovin (APP - Free Report) .
AppLovin currently has an average brokerage recommendation (ABR) of 1.37, on a scale of 1 to 5 (Strong Buy to Strong Sell), calculated based on the actual recommendations (Buy, Hold, Sell, etc.) made by 30 brokerage firms. An ABR of 1.37 approximates between Strong Buy and Buy.
Of the 30 recommendations that derive the current ABR, 23 are Strong Buy and three are Buy. Strong Buy and Buy respectively account for 76.7% and 10% of all recommendations.
Brokerage Recommendation Trends for APP
Check price target & stock forecast for AppLovin here>>>
While the ABR calls for buying AppLovin, it may not be wise to make an investment decision solely based on this information. Several studies have shown limited to no success of brokerage recommendations in guiding investors to pick stocks with the best price increase potential.
Do you wonder why? As a result of the vested interest of brokerage firms in a stock they cover, their analysts tend to rate it with a strong positive bias. According to our research, brokerage firms assign five "Strong Buy" recommendations for every "Strong Sell" recommendation.
In other words, their interests aren't always aligned with retail investors, rarely indicating where the price of a stock could actually be heading. Therefore, the best use of this information could be validating your own research or an indicator that has proven to be highly successful in predicting a stock's price movement.
Zacks Rank, our proprietary stock rating tool with an impressive externally audited track record, categorizes stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), and is an effective indicator of a stock's price performance in the near future. Therefore, using the ABR to validate the Zacks Rank could be an efficient way of making a profitable investment decision.
Zacks Rank Should Not Be Confused With ABRIn spite of the fact that Zacks Rank and ABR both appear on a scale from 1 to 5, they are two completely different measures.
Broker recommendations are the sole basis for calculating the ABR, which is typically displayed in decimals (such as 1.28). The Zacks Rank, on the other hand, is a quantitative model designed to harness the power of earnings estimate revisions. It is displayed in whole numbers -- 1 to 5.
Analysts employed by brokerage firms have been and continue to be overly optimistic with their recommendations. Since the ratings issued by these analysts are more favorable than their research would support because of the vested interest of their employers, they mislead investors far more often than they guide.
On the other hand, earnings estimate revisions are at the core of the Zacks Rank. And empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
Furthermore, the different grades of the Zacks Rank are applied proportionately across all stocks for which brokerage analysts provide earnings estimates for the current year. In other words, at all times, this tool maintains a balance among the five ranks it assigns.
There is also a key difference between the ABR and Zacks Rank when it comes to freshness. When you look at the ABR, it may not be up-to-date. Nonetheless, since brokerage analysts constantly revise their earnings estimates to reflect changing business trends, and their actions get reflected in the Zacks Rank quickly enough, it is always timely in predicting future stock prices.
Is APP Worth Investing In?In terms of earnings estimate revisions for AppLovin, the Zacks Consensus Estimate for the current year has remained unchanged over the past month at $15.97.
Analysts' steady views regarding the company's earnings prospects, as indicated by an unchanged consensus estimate, could be a legitimate reason for the stock to perform in line with the broader market in the near term.
The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #3 (Hold) for AppLovin. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
It may therefore be prudent to be a little cautious with the Buy-equivalent ABR for AppLovin.
Analyst’s Disclosure: I/we have a beneficial long position in the shares of APP either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.
AppLovin (APP - Free Report) ended the recent trading session at $445.93, demonstrating a -4.09% change from the preceding day's closing price. This move lagged the S&P 500's daily loss of 0.01%. At the same time, the Dow added 0.14%, and the tech-heavy Nasdaq lost 0.46%.
Heading into today, shares of the mobile app technology company had lost 18.12% over the past month, lagging the Business Services sector's loss of 1.21% and the S&P 500's loss of 1.4%.
The upcoming earnings release of AppLovin will be of great interest to investors. On that day, AppLovin is projected to report earnings of $3.7 per share, which would represent year-over-year growth of 63.72%. Alongside, our most recent consensus estimate is anticipating revenue of $1.94 billion, indicating a 54.14% upward movement from the same quarter last year.
For the full year, the Zacks Consensus Estimates project earnings of $15.86 per share and a revenue of $8.26 billion, demonstrating changes of +57.97% and +42.34%, respectively, from the preceding year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for AppLovin. Recent revisions tend to reflect the latest near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.
Based on our research, we believe these estimate revisions are directly related to near-term stock moves. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.
The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has remained unchanged. AppLovin presently features a Zacks Rank of #3 (Hold).
In terms of valuation, AppLovin is currently trading at a Forward P/E ratio of 29.32. This signifies a premium in comparison to the average Forward P/E of 15.61 for its industry.
We can additionally observe that APP currently boasts a PEG ratio of 0.76. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. As of the close of trade yesterday, the Technology Services industry held an average PEG ratio of 1.4.
The Technology Services industry is part of the Business Services sector. With its current Zacks Industry Rank of 162, this industry ranks in the bottom 34% of all industries, numbering over 250.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
Key Takeaways AppLovin has reported 85% adjusted EBITDA margin and 65% net margin.APP is shifting revenues toward higher-margin software while maintaining disciplined cost control.APP stock falls 31% year to date, while its margin stability stands out versus peers. The key story surrounding AppLovin Corporation (APP - Free Report) today is not just growth; it is the company’s exceptional margin strength. While AppLovin continues to expand its presence in the advertising ecosystem through performance-based tools and AI-driven optimization, its real competitive advantage lies in its operating efficiency.
A growing share of revenues is coming from higher-margin software offerings, which are increasingly driving profitability. Combined with disciplined cost management, this shift has significantly boosted bottom-line performance. As a result, a larger portion of incremental revenue now flows directly to profit, reinforcing the durability and quality of AppLovin’s business model. In the latest reported quarter, the company delivered an adjusted EBITDA margin of 85%, expanding 100 basis points from the prior year. Net margin also improved 1500 basis points to 65%, reflecting the strength of its operating structure.
This strong financial profile gives AppLovin the flexibility to continue investing in areas that support long-term growth, including AI innovation, platform improvements and balance-sheet optimization. That resilience is particularly valuable in the ad-tech sector, where market sentiment can change quickly, and short-term volatility sometimes overshadows underlying fundamentals.
The recent pullback in the stock appears to be driven more by market sentiment than by any structural weakness in the business. When a platform demonstrates scalable margins, steady demand, and disciplined capital allocation, temporary valuation resets can sometimes create attractive entry opportunities. If AppLovin can sustain its margin durability, the investment conversation may increasingly shift away from cyclical advertising trends and toward the company’s structural profitability advantage.
How AppLovin Stacks Up Against Key U.S. Peers
The Trade Desk (TTD - Free Report) operates a leading demand-side platform built around programmatic advertising and data-driven targeting. While the company benefits from strong relationships with premium brands and advertisers, its margin profile tends to be more sensitive to fluctuations in advertising spending. In many ways, The Trade Desk focuses on scale and reach, while AppLovin concentrates more heavily on performance and efficiency.
Unity Software (U - Free Report) also participates in the advertising ecosystem through its real-time 3D platform and monetization tools for developers. However, Unity’s advertising business remains closely tied to the developer community and has been more volatile. Unlike AppLovin, Unity is still working to balance growth with consistent profitability, which makes AppLovin’s margin stability a notable differentiator among these peers.Top of Form
APP’s Price Performance, Valuation and Estimates
The stock has declined 31% year to date compared with the industry’s 5% fall.
Image Source: Zacks Investment Research
From a valuation standpoint, APP trades at a forward price-to-earnings ratio of 25.36, which is above the industry average of 21.03. It carries a Value Score of C.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for APP’s 2026 earnings has remained unchanged over the past 30 days.
APP currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
AppLovin (APP) fell in premarket trading on Monday after Citi removed a 90-day catalyst watch on the software and mobile gaming company, saying the pace of e-co
JACKSONVILLE BEACH, Fla.--(BUSINESS WIRE)--MedAxiom, the premier source for cardiovascular organizational performance solutions, has released the 2025 Cardiovascular Advanced Practice Provider (APP) Compensation and Utilization Report, which includes data from more than 100 provider organizations.
One of MedAxiom’s goals is to empower clinicians by ensuring that every cardiovascular organization has the tools needed to support APPs.
Share The report features a foreword from Jerry Blackwell, MD, MBA, FACC, president and CEO of MedAxiom, highlighting APP contributions to productivity, workflow, access, and patient satisfaction, enabling teams to deliver timely, guideline-based, patient-centered cardiovascular care. The survey reveals that in more than half (55%) of cardiovascular programs, APPs hold formal administrative roles, underscoring the expanding operational and leadership responsibilities of this group beyond direct patient care.
Report Highlights:
Productivity-based incentives are being used more often, reported by 64% of programs in 2025 compared with 37% in 2022. The percentage of programs reporting a 4:1 patient-to-provider ratio of APPs in the ICU increased substantially across the survey period, while higher ratios such as 6:1 and 8:1 declined. While clinical responsibilities for acute care APPs have expanded modestly, the most notable changes involve greater use of overnight coverage, slightly higher patient loads, and more standardized scheduling models with fewer reports of extreme work hours. Call compensation structure shifted noticeably. Fewer programs report call as part of base salary, while more programs now offer hourly or per-call incentives. One of the key shifts across survey years was the increased use of 30-minute new patient visits, which became the most common model. The report also suggests that as cardiovascular care grows more complex and increasingly relies on coordinated, team-based models, comprehensive, evidence-based education for APPs is essential. “Cardiovascular conditions are becoming increasingly chronic, complex and longitudinal,” said MedAxiom President and CEO, Jerry Blackwell, MD, MBA, FACC. “No single physician can safely deliver modern, state-of-the-art cardiovascular care alone. Siloed hero care doesn’t work in today’s healthcare environment.”
One of MedAxiom’s goals is to empower clinicians by ensuring that every cardiovascular organization has the tools needed to support APPs. To affirm its commitment to APPs, MedAxiom has released a revamped version of its most popular onboarding course – Cardiovascular Essentials for APPs. The reimagined 13-module course offers up to 50 CME credits and is designed to streamline onboarding for APPs newly entering cardiology practice and standardize APP knowledge across an organization.
The course is led by Blackwell and one of the leading APP instructors in the U.S. who co-authored the report, Maureen Knetchel, DMSc, PA-C, academic coordinator and Associate Professor of Physician Assistant Studies at Milligan University. “Through structured instruction, case-based learning and evidence-based practice guidance, learners will develop or strengthen foundational competency in cardiovascular diagnosis, clinical decision-making and guideline-directed management in both inpatient and outpatient settings,” said Knetchel.
The report and course serve as guides for supporting the vital work of APPs and optimizing the cardiovascular care team.
The full report is available here.
Learn more about Cardiovascular Essentials for APPs here.
About MedAxiom
MedAxiom, an American College of Cardiology Company, is the cardiovascular community’s premier source for organizational performance solutions. MedAxiom is transforming cardiovascular care by combining the knowledge and power of hundreds of cardiovascular organization members, thousands of administrators, clinicians and revenue cycle experts, and dozens of industry partners. Through the delivery of proprietary tools, smart data and proven strategies, MedAxiom helps cardiovascular organizations achieve the Quadruple Aim of better outcomes, lower costs, improved patient experience and improved clinician experience. For additional information, visit MedAxiom.com.
One stock that has been shuffled to the side this year and largely overlooked is AppLovin (APP 1.90%). The stock price is down more than 20% on the year. However, a few Wall Street analysts see significant upside potential in it.
Among the analysts bullish on AppLovin stock is Evercore's Robert Coolbrith, who has an "outperform" rating and a $750 price target. Coolbrith believes the stock's valuation is compelling and sees early momentum in its newer e-commerce vertical. Morgan Stanley analysts are also bullish, with a $720 target, saying late last month that higher conversion rates could drive meaningful revenue and profits.
Citigroup, meanwhile, has a $710 price target on AppLovin and recently added the stock to its 90-day catalyst watch list, citing the growth potential in its increased marketing and in its platform becoming generally available later this month.
Image source: The Motley Fool.
Why the stock looks like a buy AppLovin has been one of the biggest beneficiaries of using artificial intelligence (AI) to drive growth in its core business. Since releasing its AI-powered Axon 2 engine in 2023, the adtech company has seen not only tremendous revenue growth but also expanding margins.
This continued last quarter, when the company grew its revenue by 59% to $1.84 billion. Meanwhile, its gross margins rose 220 basis points to 89%, while its adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) margins climbed by 400 basis points.
Despite the company's robust growth over the past few years, it still has catalysts ahead. After operating a closed, managed service ecosystem, generally available only to large gaming app developers, it is opening a self-service platform for the first time this month. That should help bring in smaller gaming app developers and those from other industry verticals, such as e-commerce, which it has recently been courting.
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On top of that, AppLovin has said it is seeing tailwinds in the gaming industry as more large gaming developers look to introduce hybrid monetization models that include ads. Historically, some of the very top games, especially role-playing (RPG) and strategy games, have relied solely on in-game purchases, not wanting to advertise competing games. However, that has started to change, which could be a tailwind for AppLovin.
Even with its strong growth and opportunities, the stock remains attractively valued. It trades at a forward price-to-earnings (P/E) ratio of 31 based on 2026 analyst estimates, with a price/earnings-to-growth (PEG) ratio of under 0.5 times. A PEG ratio less than 1 is typically considered undervalued. Taken as a whole, the stock looks like a solid buy with some nice upside potential.
Citigroup is an advertising partner of Motley Fool Money. Geoffrey Seiler has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Evercore. The Motley Fool has a disclosure policy.
AppLovin (APP - Free Report) closed at $479.49 in the latest trading session, marking a -6.93% move from the prior day. The stock's change was less than the S&P 500's daily loss of 1.22%. Elsewhere, the Dow lost 0.98%, while the tech-heavy Nasdaq lost 1.35%.
The mobile app technology company's shares have seen an increase of 8.03% over the last month, surpassing the Business Services sector's gain of 0.83% and the S&P 500's gain of 1.56%.
Market participants will be closely following the financial results of AppLovin in its upcoming release. The company is expected to report EPS of $3.7, up 63.72% from the prior-year quarter. At the same time, our most recent consensus estimate is projecting a revenue of $1.94 billion, reflecting a 54.14% rise from the equivalent quarter last year.
For the full year, the Zacks Consensus Estimates are projecting earnings of $15.86 per share and revenue of $8.26 billion, which would represent changes of +57.97% and +42.34%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for AppLovin. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.
The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the past month, there's been no change in the Zacks Consensus EPS estimate. AppLovin currently has a Zacks Rank of #3 (Hold).
Looking at valuation, AppLovin is presently trading at a Forward P/E ratio of 32.49. This denotes a premium relative to the industry average Forward P/E of 15.84.
Meanwhile, APP's PEG ratio is currently 0.84. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. As of the close of trade yesterday, the Technology Services industry held an average PEG ratio of 1.43.
The Technology Services industry is part of the Business Services sector. At present, this industry carries a Zacks Industry Rank of 165, placing it within the bottom 33% of over 250 industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much more, on Zacks.com.
Spectrum customers can now purchase a Netflix membership, home to fan-favorites like "KPop Demon Hunters," "Wednesday" and "Bridgerton," in The Spectrum App Store. The Spectrum App Store gives customers one place to discover, activate, upgrade and purchase streaming services. Eligible Spectrum TV customers receive over $125/month in retail streaming value and can further personalize their streaming experience by adding Netflix. , /PRNewswire/ -- Spectrum customers can now purchase Netflix in The Spectrum App Store, a digital marketplace that makes it easy to discover, activate, upgrade and purchase streaming services, all in one place. This addition gives Spectrum customers with and without a TV plan a simpler way to buy the ad-supported and ad-free versions of Netflix and access its library of award-winning TV series, movies, games and live events.
"Netflix has become a major part of how people watch entertainment today, from hit Originals and exclusive live sports, to documentaries, family programming and cultural moments everyone is talking about," said Elena Ritchie, Senior Vice President, Video, Spectrum. "By bringing Netflix to The Spectrum App Store, we're delivering on our promise of Seamless Entertainment and providing more choice, value and a simpler way to manage streaming and TV services."
What is The Spectrum App Store?
The Spectrum App Store allows Spectrum customers to:
Purchase streaming services like Netflix Activate applicable subscriptions included at no extra cost in eligible Spectrum TV plans Upgrade to ad-free streaming and pay only the cost difference if the ad-supported version is already included in their TV plan for apps like Disney+ Hulu Bundle and Peacock Discover new content Manage all their favorite streaming services in one place Netflix Brings Hit Entertainment, Live Events and Something for Everyone
Netflix's library spans comedies, dramas, anime, book-to-screen adaptations, documentaries, kids and family programming, and more. It's home to exclusive sports and live events including the upcoming MLB Home Run Derby and 2026 Field of Dreams Game, as well as NFL games, WWE Raw, The Westminster Dog Show, and more. In 2025, audiences flocked to hit series like "Wednesday," "Stranger Things" and "Squid Game," and fan-favorite films including "KPop Demon Hunters," "Happy Gilmore 2" and "Frankenstein." Upcoming releases include films like "Office Romance," "Best of the Best," and "Enola Holmes 3," as well as series like "The Hunting Wives" Season 2, "East of Eden," "Little House on the Prairie," "Love is Blind" Season 11 Boston, "Outerbanks" Season 5 and more.
How Spectrum TV Customers Get Even More Streaming Value
With the addition of Netflix for purchase, Spectrum continues to expand The Spectrum App Store, giving Spectrum TV customers an easy way to add streaming services alongside over $125 per month in retail streaming app value already included with their TV plans at no extra cost. Eligible Spectrum TV customers receive Disney+ Hulu Bundle, ESPN Unlimited, HBO Max Basic with Ads, Paramount+ Essential, Peacock Premium with Ads, AMC+ with Ads, ViX Premium with Ads, Tennis Channel, FOX One and Discovery+.
For more information about The Spectrum App Store, spectrum.com/cable-tv/app-store.
About Spectrum
Spectrum is a suite of advanced communications services offered by Charter Communications, Inc. (NASDAQ:CHTR), a leading broadband connectivity company available to nearly 59 million homes and small to large businesses across 41 states. Founded in 1993, Charter has evolved from providing cable TV to streaming, and from high-speed Internet to a converged broadband, WiFi and mobile experience. Over the Spectrum Fiber Broadband Network and supported by our 100% U.S.-based employees, the Company offers Seamless Connectivity and Entertainment with Spectrum Internet®, Mobile, TV and Voice products.
More information can be found at corporate.charter.com.
AppLovin (NASDAQ:APP | APP Price Prediction) has had a wild ride in 2026. After a blistering 2025 that pushed shares higher, the stock has cooled meaningfully, leaving investors wondering whether the AI ad-tech story is broken or simply digesting gains. My read leans toward the latter, and the 24/7 Wall St. price target reflects that.
Our price target for AppLovin is $603.42, implying roughly 28.47% upside from the current price of $469.71. The recommendation is buy at a 90% confidence level, which is among the highest readings our model assigns.
24/7 Wall St. Price Target Summary Metric Value Current Price $469.71 24/7 Wall St. Price Target $603.42 Upside 28.47% Recommendation BUY Confidence Level 90% A Volatile 2026 Has Reset Expectations AppLovin is down 30.29% year to date, with shares slipping 1.85% over the past week and sitting 13% below the 52-week high of $745.61. Over a one-year window, however, the stock is still up 36.4%, and the five-year return of 432.49% reflects the payoff from the company’s pivot to a pure-play ad-tech model powered by the AXON 2 AI engine.
The fundamentals remain exceptional. Q1 FY26 revenue of $1.84B rose 24.15% YoY and beat estimates, while EPS of $3.56 topped the $3.46 consensus. Operating income jumped 117% YoY to $1.44B at a 78% margin, and the team returned $1B to shareholders through buybacks in the quarter.
Why Bulls See a Breakout Ahead The bull case rests on AXON 2’s operating leverage. Adjusted EBITDA margin expanded from 81% in Q2 2025 to 85% in Q1 2026, and Q2 2026 guidance calls for revenue of $1.915B to $1.945B at 84-85% EBITDA margins. Free cash flow of $3.95B in FY25 funds aggressive buybacks, with 6.4M shares retired for $2.58B last year.
With 7 Strong Buy and 21 Buy ratings against just 4 Holds, the Street is loud. Our bull case scenario points to $793.08 over the next year, a 68.84% total return, if e-commerce ad expansion accelerates.
The Risks Worth Watching The bear case starts with valuation. APP trades at a forward P/E of 33x and a P/S of 28x. A beta of 2.46 means any AI sentiment crack hits hard. Insider activity skews to selling across 165 transactions, and FY25 included a $188.9M goodwill impairment plus a $50M investment writedown.
Bulls would counter that these charges tie back to the Apps divestiture to Tripledot Studios for $400M cash plus 20% equity, a cleanup move that sharpens the pure-play ad-tech focus. Our bear case still nets a $508.79 target.
AppLovin Price Prediction 2026-2030 The 24/7 Wall St. price target of $603.42 with 90% confidence keeps me constructive. The decisive factor is operating leverage: net margin expanded to 65% while revenue grew 24%.
The constructive case strengthens if AXON 2 continues compounding ad pricing and impressions into 2027. The thesis weakens if forward guidance signals deceleration below 20% growth or if the e-commerce vertical disappoints.
Year 24/7 Wall St. Price Target 2026 $603 2030 $969 These projections assume AppLovin continues executing on AXON 2 monetization and e-commerce ad expansion. Significant upside could come if connected TV ad share grows materially, while downside risk centers on platform policy shifts at Apple or Google.
It doesn't matter your age or experience: taking full advantage of the stock market and investing with confidence are common goals for all investors. Luckily, Zacks Premium offers several different ways to do both.
The research service features daily updates of the Zacks Rank and Zacks Industry Rank, full access to the Zacks #1 Rank List, Equity Research reports, and Premium stock screens, all of which will help you become a smarter, more confident investor.
Zacks Premium includes access to the Zacks Style Scores as well.
What are the Zacks Style Scores? The Zacks Style Scores is a unique set of guidelines that rates stocks based on three popular investing types, and were developed as complementary indicators for the Zacks Rank. This combination helps investors choose securities with the highest chances of beating the market over the next 30 days.
Each stock is given an alphabetic rating of A, B, C, D or F based on their value, growth, and momentum qualities. With this system, an A is better than a B, a B is better than a C, and so on, meaning the better the score, the better chance the stock will outperform.
The Style Scores are broken down into four categories:
Value ScoreValue investors love finding good stocks at good prices, especially before the broader market catches on to a stock's true value. Utilizing ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and many other multiples, the Value Style Score identifies the most attractive and most discounted stocks.
Growth ScoreWhile good value is important, growth investors are more focused on a company's financial strength and health, and its future outlook. The Growth Style Score takes projected and historic earnings, sales, and cash flow into account to uncover stocks that will see long-term, sustainable growth.
Momentum ScoreMomentum traders and investors live by the saying "the trend is your friend." This investing style is all about taking advantage of upward or downward trends in a stock's price or earnings outlook. Employing factors like one-week price change and the monthly percentage change in earnings estimates, the Momentum Style Score can indicate favorable times to build a position in high-momentum stocks.
VGM ScoreWhat if you like to use all three types of investing? The VGM Score is a combination of all Style Scores, making it one of the most comprehensive indicators to use with the Zacks Rank. It rates each stock on their combined weighted styles, which helps narrow down the companies with the most attractive value, best growth forecast, and most promising momentum.
How Style Scores Work with the Zacks Rank The Zacks Rank, which is a proprietary stock-rating model, employs earnings estimate revisions, or changes to a company's earnings expectations, to make building a winning portfolio easier.
Investors can count on the Zacks Rank's success, with #1 (Strong Buy) stocks producing an unmatched +24% average annual return since 1988, more than double the S&P 500's performance. But the model rates a large number of stocks, and there are over 200 companies with a Strong Buy rank, plus another 600 with a #2 (Buy) rank, on any given day.
This totals more than 800 top-rated stocks, and it can be overwhelming to try and pick the best stocks for you and your portfolio.
That's where the Style Scores come in.
To have the best chance of big returns, you'll want to always consider stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B, which will give you the highest probability of success. If you're looking at stocks with a #3 (Hold) rank, it's important they have Scores of A or B as well to ensure as much upside potential as possible.
The direction of a stock's earnings estimate revisions should always be a key factor when choosing which stocks to buy, since the Scores were created to work together with the Zacks Rank.
For instance, a stock with a #4 (Sell) or #5 (Strong Sell) rating, even one that boasts Scores of A and B, still has a downward-trending earnings forecast, and a much greater likelihood its share price will decline as well.
Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.
Stock to Watch: AppLovin (APP - Free Report) AppLovin Corporation provides end-to-end AI-powered advertising solutions that help businesses reach, monetize, and grow global audiences. Revenue primarily comes from fees advertisers pay to use Axon Ads Manager, priced dynamically against campaign return goals. Its stack also includes MAX for in-app monetization via real-time bidding, Adjust for measurement subscriptions, and Wurl for connected-TV distribution and ads.
APP is a #3 (Hold) on the Zacks Rank, with a VGM Score of A.
Additionally, the company could be a top pick for growth investors. APP has a Growth Style Score of A, forecasting year-over-year earnings growth of 58% for the current fiscal year.
Five analysts revised their earnings estimate higher in the last 60 days for fiscal 2026, while the Zacks Consensus Estimate has increased $0.38 to $15.86 per share. APP also boasts an average earnings surprise of +8.4%.
With a solid Zacks Rank and top-tier Growth and VGM Style Scores, APP should be on investors' short list.
Applovin Corp (NASDAQ:APP) is enjoying broader market tailwinds, last seen up 4.9% at $521.05. The stock has had a volatile year, recently falling from an early-June multi-month peak, but a bullish signal now flashing could mean even more short-term gains.
According to Schaeffer's Senior Quantitative Analyst Rocky White, APP is trading within 0.75 times the 50-day moving average's 20-day average true range (ATR), after spending at least 80% of the previous two weeks and 80% of the prior 42 trading sessions above that trendline.
This setup has appeared six times during the last decade, after which the stock was higher one month later 83% of the time, averaging an impressive 6.4% gain. A comparable rally from current levels would put Applovin stock at $554.39.
Furthermore, the 12.83 million shares sold short account for 5.14% of KR's available float, and it would take short sellers roughly three days to buy back their bearish bets at the stock's average pace of trading.
Options are affordably priced at the moment, per Applovin stock's Schaeffer’s Volatility Index (SVI) of 67% that stands in the 22nd percentile of its annual range. The stock tends to outperform these volatility expectations, too, according to its Schaeffer's Volatility Scorecard (SVS), which comes in at 80 out of 100.
AppLovin (APP - Free Report) is one of the stocks most watched by Zacks.com visitors lately. So, it might be a good idea to review some of the factors that might affect the near-term performance of the stock.
Over the past month, shares of this mobile app technology company have returned -0.8%, compared to the Zacks S&P 500 composite's +0.5% change. During this period, the Zacks Technology Services industry, which AppLovin falls in, has lost 0.7%. The key question now is: What could be the stock's future direction?
While media releases or rumors about a substantial change in a company's business prospects usually make its stock 'trending' and lead to an immediate price change, there are always some fundamental facts that eventually dominate the buy-and-hold decision-making.
Revisions to Earnings EstimatesHere at Zacks, we prioritize appraising the change in the projection of a company's future earnings over anything else. That's because we believe the present value of its future stream of earnings is what determines the fair value for its stock.
We essentially look at how sell-side analysts covering the stock are revising their earnings estimates to reflect the impact of the latest business trends. And if earnings estimates go up for a company, the fair value for its stock goes up. A higher fair value than the current market price drives investors' interest in buying the stock, leading to its price moving higher. This is why empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
For the current quarter, AppLovin is expected to post earnings of $3.70 per share, indicating a change of +63.7% from the year-ago quarter. The Zacks Consensus Estimate remained unchanged over the last 30 days.
The consensus earnings estimate of $15.86 for the current fiscal year indicates a year-over-year change of +58%. This estimate has remained unchanged over the last 30 days.
For the next fiscal year, the consensus earnings estimate of $21 indicates a change of +32.4% from what AppLovin is expected to report a year ago. Over the past month, the estimate has remained unchanged.
Having a strong externally audited track record, our proprietary stock rating tool, the Zacks Rank, offers a more conclusive picture of a stock's price direction in the near term, since it effectively harnesses the power of earnings estimate revisions. Due to the size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, AppLovin is rated Zacks Rank #3 (Hold).
The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:
12 Month EPS
Revenue Growth ForecastWhile earnings growth is arguably the most superior indicator of a company's financial health, nothing happens as such if a business isn't able to grow its revenues. After all, it's nearly impossible for a company to increase its earnings for an extended period without increasing its revenues. So, it's important to know a company's potential revenue growth.
For AppLovin, the consensus sales estimate for the current quarter of $1.94 billion indicates a year-over-year change of +54.1%. For the current and next fiscal years, $8.26 billion and $10.69 billion estimates indicate +42.3% and +29.4% changes, respectively.
Last Reported Results and Surprise HistoryAppLovin reported revenues of $1.84 billion in the last reported quarter, representing a year-over-year change of +24.2%. EPS of $3.56 for the same period compares with $1.67 a year ago.
Compared to the Zacks Consensus Estimate of $1.77 billion, the reported revenues represent a surprise of +3.86%. The EPS surprise was +4.71%.
The company beat consensus EPS estimates in each of the trailing four quarters. The company topped consensus revenue estimates each time over this period.
ValuationNo investment decision can be efficient without considering a stock's valuation. Whether a stock's current price rightly reflects the intrinsic value of the underlying business and the company's growth prospects is an essential determinant of its future price performance.
While comparing the current values of a company's valuation multiples, such as price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), with its own historical values helps determine whether its stock is fairly valued, overvalued, or undervalued, comparing the company relative to its peers on these parameters gives a good sense of the reasonability of the stock's price.
The Zacks Value Style Score (part of the Zacks Style Scores system), which pays close attention to both traditional and unconventional valuation metrics to grade stocks from A to F (an A is better than a B; a B is better than a C; and so on), is pretty helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.
AppLovin is graded D on this front, indicating that it is trading at a premium to its peers. Click here to see the values of some of the valuation metrics that have driven this grade.
Bottom LineThe facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about AppLovin. However, its Zacks Rank #3 does suggest that it may perform in line with the broader market in the near term.
Analyst’s Disclosure: I/we have a beneficial long position in the shares of MSTR either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.
Markets move faster than ever these days, and yesterday’s winners can quickly become today’s losers. When prices outpace fundamentals, traders often rely on technical indicators and signals to guide their decisions. Momentum indicators like the Relative Strength Index (RSI) don’t have prophetic powers, but they do give clues about where a stock might be headed and how much strength backs the move. Using a combination of indicators together can provide solid evidence that a downtrend is about to break. Or, in the case of these three stocks, that an uptrend is losing momentum.
The tech sector has been one of the most volatile parts of the market over the past few weeks, with the Nasdaq 100 fluctuating by more than 2% in a single day on multiple occasions. While volatile trading sessions make for fun times for day traders, it can be difficult to gauge the market when indices swing by 2% every day. That’s where technical analysis comes into play. Technical indicators utilize recent price data to generate actionable signals about shifts or continuations in momentum. By applying technical analysis, we can make educated predictions about a stock’s future path based on the intensity of buying or selling activity around it.
Get Fortinet alerts:
Each of the following three stocks fits a specific set of criteria. All three have gained 20% or more over the last 12 months, driven by various fundamental and macro factors. However, these stocks are currently showing technical warning signs that investors should carefully examine.
Fortinet: Overbought Peak With Insider Selling WarningFortinet Today
$146.30 +1.24 (+0.85%)
As of 06/12/2026 04:00 PM Eastern
52-Week Range$70.12▼
$150.07P/E Ratio56.49
Price Target$107.77
Fortinet Inc. NASDAQ: FTNT has been the face of the “software isn’t dead” narrative. The $106 billion cybersecurity firm has seen its stock accelerate more than 80% year-to-date (YTD), including more than 70% in the past three months alone.
The software sector seemed to be in the crosshairs of agentic AI, and funds like the iShares Expanded Tech-Software Sector ETF BATS: IGV lost more than 35% of their value between September and April. However, strong earnings from companies like Fortinet showed that AI can complement software platforms rather than wipe them out. Fortinet smashed expectations in Q1 2026, beating both top and bottom line estimates and posting 20% year-over-year (YOY) revenue growth.
Management also raised full-year guidance and repurchased more than $800 million worth of stock. So why is this stock on a “time to sell” list? Because sometimes the most important technical signals aren’t shown on the charts. Insiders have been selling stock at a faster rate over the last two quarters, including a $23 million sale from CEO Ken Xie.
There has been no significant insider buying in the past year, and insider selling at a technical top is often a warning sign. Widening Bollinger Bands indicate that volatile trading has become the norm for FTNT shares, and the Moving Average Convergence Divergence (MACD) indicator has turned bearish following the strong rally. The company’s long-term fundamentals still look promising, but it might be wise to take some short-term profits now.
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52-Week Range$3.43▼
$24.23Price Target$21.67
Amprius Technologies Inc. NYSE: AMPX lacks the strong fundamental foundation that Fortinet has, which means its downturn could be much sharper.
The lithium-ion battery producer is beating revenue estimates, and its stock is still up more than 100% YTD, but the rally is faltering amid concerns about the quality of its revenue. A recent report by a short-seller claims that the company inflates its orders and engages in undisclosed transactions with a related party affiliated with Amprius’s CEO.
The company also reported a larger-than-expected loss in its Q1 2026 earnings report on May 6, and insiders have sold $83 million worth of shares over the last three quarters, without a single buy.
AMPX might be heading for the dreaded double top pattern, and other signals suggest that the fun is over. Both the RSI and MACD have been trending down since the middle of March, and now the former has spent most of the last six weeks in bearish territory. AMPX isn’t profitable yet, and short sellers are openly questioning its revenue streams, so it would be wise to avoid this stock or take profits while you can.
AppLovin: Death Cross Overshadows Fundamental StrengthAppLovin Today
$496.77 +18.20 (+3.80%)
As of 06/12/2026 04:00 PM Eastern
52-Week Range$320.00▼
$745.61P/E Ratio42.68
Price Target$669.62
AppLovin Corp. NASDAQ: APP is already down more than 25% YTD, even though it grew revenue by more than 56% in Q1 2026, and remains well-regarded by analysts. But despite a strong fundamental picture, the stock is in the throes of a bear market that’s proving difficult to shake.
It may seem counterintuitive, but APP shares probably won’t reflect the company’s strength until the technical setup improves.
An early-March Death Cross indicated the stock has a long way to go before regaining buying momentum.
The Death Cross sent the stock plunging under the 50-day and 200-day moving averages, where it stayed until late May.
APP shares tried to break out at the end of May, but sellers quickly pushed the share price back below the 200-day moving average, and now it's once again testing the 50-day moving average. With the RSI also below 50, APP shares can remain on your watchlist until they make a significant move above the 50-day moving average.
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AppLovin demonstrates robust revenue growth, up 59% YoY in Q1'26, driven by AI-powered ad efficiency and expanding beyond gaming. AI enhancements and self-service ad platforms, including AI video generation, are structurally improving conversion rates and monetization opportunities for APP. Morgan Stanley sets a bullish $1,100 price target, citing conversion rate expansion as a key revenue driver, though current evidence suggests this optimism may be premature.
Shares of AppLovin (APP +3.50%) rallied 10.4% on the day.
AppLovin didn't report any financial news today, as its first-quarter earnings report came on May 11. However, one Wall Street analyst gave the stock a thumbs-up on Wednesday, noting that AppLovin's growth potential may still be underestimated.
Today's Change
(
3.50
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16.75
Current Price
$
495.32
Morgan Stanley thinks AppLovin can outgrow estimates In an analyst note today, Morgan Stanley analyst Matthew Cost kept an Overweight rating and a $720 price target on the stock. That compares with a $514 stock price at the start of the day.
Cost believes Applovin can continue to outgrow analysts' and skeptics' expectations, noting that while AppLovin's growth runway is "mature" in a certain sense, there is still room for more growth over the next few years than people think.
Cost points out that skeptics cite AppLovin's average 60% growth rate between 2023 and 2025, which far outpaced mobile game spending of 5%. Moreover, skeptics point out that AppLovin's ad load -- or the number of ads it shows -- already looks "full," at roughly 20 per hour.
However, Cost also notes that roughly 99% of AppLovin's ads don't convert into purchases. There, Cost sees opportunity for AppLovin to flex its data advantages over the next few years, improving on that figure. Cost estimates that if AppLovin can just improve conversion by 20 basis points per year, it could beat 2030 consensus estimates by a whopping 50%.
Image source: Getty Images.
AppLovin is a controversial growth stock AppLovin survived numerous short-seller attacks over the past two years and hit an all-time high at the end of 2025. However, this digital ad technology stock is currently well off those highs following this year's "SaaS-pocalypse," in which software stocks have sold off amid AI disruption fears.
To be fair, the stock doesn't look "cheap" in the conventional sense, at nearly 50 times earnings. However, for a company that grew nearly 60% last quarter, that's not too high a price, provided its growth runway doesn't run into a wall. At least one Wall Street analyst doesn't think that will happen, as outlined in Cost's note today.
Billy Duberstein and/or his clients have no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
Digital Brands Group (NASDAQ: DBGI) just announced a new AI brand protection collaboration with a globally recognized outdoor performance label — its latest step in a deliberate pivot from apparel operator to AI-enabled platform.
, /PRNewswire/ -- Equity Insider News Commentary – Two AI stories are unfolding inside consumer brands at the same time. The first is well-known: AI agents are starting to do the shopping. According to Adobe Analytics, AI-driven traffic to U.S. retail sites jumped roughly 693% year-over-year during the 2025 holiday shopping season, and McKinsey now estimates the global agentic commerce opportunity could reach $3 trillion to $5 trillion by 2030. The second story is quieter but in many ways more urgent: the same AI tools that are reshaping discovery are also being used by counterfeiters and bad actors to scale brand abuse, fake listings, and IP infringement at levels traditional enforcement was never built for. The most recent OECD-EUIPO data estimates the global trade in fake goods at roughly $467 billion, and industry reporting suggests that as much as 83% of online counterfeiting now flows through social and e-commerce channels.
Most public companies are picking one of those two stories to chase. One small-cap NASDAQ name has been steadily building toward both.
On May 28, 2026, Digital Brands Group, Inc. (NASDAQ: DBGI) announced a new strategic AI and brand protection collaboration with a globally recognized outdoor performance apparel brand. The release describes the partner as one of the leading premium outdoor brands worldwide — known for technical outerwear, an innovation-driven product ecosystem, and significant international retail presence. The initiative is being supported through DBG's existing relationship with SECUR3D Inc., the Vancouver-based AI brand protection company whose technology is expected to assist in identifying unauthorized digital assets, counterfeit-related listings, and broader online intellectual property concerns across digital marketplaces and emerging online channels.
"This collaboration represents another important step in Digital Brands Group's broader technology strategy," said Hil Davis, CEO of Digital Brands Group. "We believe AI-powered tools will become increasingly important as global brands continue navigating rapidly evolving digital commerce environments. Our goal is to continue building relationships and technology partnerships that create meaningful long-term value across the broader retail and consumer brand landscape."
Why it matters: the new collaboration is not the first signal of where DBG is headed — it's the latest in a clearly accelerating sequence.
In November 2025, Digital Brands Group introduced SECUR3D and its AssetSafe platform as the anchor of an AI-driven brand protection ecosystem. In March 2026, the Company released early data from its first major SECUR3D deployment — a partnership with retro backpack brand Herschel Supply Co. — where the initial scan phase alone identified counterfeit activity tied to an estimated $500,000 in losses from unauthorized listings and brand misuse. Just last week, DBG announced a separate partnership with applied AI company Renov AI, supported by the MITACS innovation ecosystem, to advance data intelligence, automation, and analytics across the Company's brand protection and eCommerce roadmap.
Layered together, those moves describe a company that started as a digitally native vertical apparel brand and is being rebuilt — partnership by partnership — into something closer to an AI infrastructure play for modern consumer brands. The DTC apparel business gives the technology a live operating environment. The technology gives the apparel business a thesis institutional investors don't typically associate with small-cap fashion tickers.
Founded in Vancouver, BC, SECUR3D is an AI-powered brand and intellectual property protection company helping brands, creators, and platforms detect and protect digital assets across online marketplaces and digital ecosystems. Through its proprietary technology suite — including AssetSafe, Sentry, and Sherlock AI — SECUR3D delivers an end-to-end protection layer for detecting unauthorized IP use, monitoring infringement risk, supporting enforcement intelligence, and preserving brand integrity and consumer trust across fashion, entertainment, gaming, and digital commerce.
Digital Brands Group has signaled that this is the direction of travel. The Company sees AI-powered infrastructure and monitoring technologies becoming increasingly important for global brands seeking to protect intellectual property, strengthen digital trust, and better manage large-scale online retail environments — and intends to continue exploring a broader suite of AI partnerships across digital commerce, brand protection, operational intelligence, customer engagement, and emerging online ecosystems.
DBG is operating in a category where capital is concentrated, the public-market opportunity is narrow, and large software incumbents are now openly competing on AI commerce and AI security positioning. A handful of NYSE- and NASDAQ-listed names have been moving in adjacent corners of the same opportunity over the last several weeks.
Other Public Names Moving in the AI Commerce and Brand Protection Stack
Klaviyo (NYSE: KVYO) reported its first-quarter 2026 results on May 6, 2026, with revenue of $358 million (up 28% year-over-year), GAAP net income of $9 million (versus a $14 million net loss a year earlier), and a full-year revenue outlook raised to a range of $1.514 billion to $1.522 billion. The B2C marketing platform also introduced new AI capabilities through Custom Skills for its Customer Agent product, positioning itself as what it describes as an "Autonomous B2C CRM." On May 7, 2026, Klaviyo separately announced an expanded integration with Anthropic, extending its Model Context Protocol (MCP) server across Claude.ai and Claude Cowork to bring agentic marketing workflows directly into the AI tools brands are increasingly adopting.
Shopify (NYSE: SHOP) has been one of the most aggressive incumbents in agentic commerce. Speaking on the Company's Q1 2026 earnings call, President Harley Finkelstein highlighted that AI-driven traffic to Shopify stores ran roughly 8x year-over-year in Q1 2026, while orders from AI-powered searches were up 13-fold. As of March 2026, Shopify made its Agentic Storefronts generally available to millions of merchants, giving them out-of-the-box access to major AI channels including ChatGPT, Microsoft Copilot, AI Mode in Google Search, and the Gemini app, all managed from the Shopify Admin.
Palo Alto Networks (NASDAQ: PANW) has been pushing harder into AI-era trust and identity. On May 12, 2026, the cybersecurity leader unveiled Idira, a next-generation identity security platform designed for AI enterprises, with capabilities aimed at discovering, controlling, and governing human, machine, and agentic identities. Around the same time, the Company highlighted a frontier AI-focused partnership with Armadin that adds autonomous, AI-based offensive testing to its Unit 42 Frontier AI Defense stack — reinforcing PANW's positioning at the center of AI-era cyber defense for enterprises.
AppLovin (NASDAQ: APP) reported first-quarter 2026 revenue of $1.84 billion and net income of $1.21 billion in early May, beating consensus estimates and prompting bullish target revisions from UBS, Deutsche Bank, Macquarie, Wedbush, Oppenheimer, and Jefferies. The Company guided Q2 revenue to a range of $1.915 billion to $1.945 billion, with adjusted EBITDA of $1.615 billion to $1.645 billion — both above Street expectations. AppLovin's AXON AI advertising engine remains the core growth driver, with the Company also announcing that AXON will open to all advertisers worldwide in June 2026 — a shift management has described as ending more than a decade of operating AXON as a closed system.
A Different Way to Get Public-Market Exposure
Most of the well-known names in AI brand protection — MarqVision, Red Points, BrandShield, Corsearch — remain private. The publicly traded names sitting nearest to the theme are large-cap incumbents like Shopify, Klaviyo, Palo Alto Networks, and AppLovin, each playing different positions on the same AI-meets-commerce field. What makes Digital Brands Group unusual is the angle of attack: a small-cap NASDAQ ticker that is layering AI brand protection (SECUR3D), applied AI engineering (Renov AI), and AI-powered influencer marketing (Aha, formerly HeadAI) on top of a real direct-to-consumer apparel operating business that serves as the proving ground.
The newly announced collaboration with a globally recognized outdoor performance brand adds a high-visibility validation customer in a category — premium technical outerwear — that has been a long-standing target for counterfeiters. If the Herschel scan-phase data is any indication of what the AssetSafe platform can identify at scale, the new partnership could become an important reference deployment as DBG continues onboarding additional brands into the AI brand protection ecosystem it is building.
The Company has said its strategy is to continue building relationships and technology partnerships that create long-term value across the broader retail and consumer brand landscape. For investors looking for an unusual public-market angle on AI in commerce — one that touches both the growth side (how brands reach customers) and the defense side (how brands protect themselves) — that roadmap is one of the more differentiated setups on NASDAQ heading into the second half of 2026.
CONTINUED READING: To learn more about Digital Brands Group, Inc. (NASDAQ: DBGI), visit https://ir.digitalbrandsgroup.co.
[1] Digital Brands Group, Inc. – "Digital Brands Group Advances Enterprise AI Strategy Through Collaboration with Globally Recognized Outdoor Apparel Brand," May 28, 2026.
[2] Digital Brands Group, Inc. – "Digital Brands Group Expands Suite of eCommerce Tools Through Partnerships With SECUR3D," November 14, 2025. https://www.globenewswire.com/news-release/2025/11/14/3188348/0/en/Digital-Brands-Group-Expands-Suite-of-eCommerce-Tools-Through-Partnerships-With-SECUR3D.html
[3] Consumer Goods Technology – "Herschel Supply Co., Digital Brands Group Fight Counterfeiting With AI," March 27, 2026. https://consumergoods.com/herschel-supply-co-digital-brands-group-fight-counterfeiting-ai
[4] Shopify – "Agentic Commerce on Shopify: How It Works (2026)," April 2026. https://www.shopify.com/blog/how-agentic-commerce-works
[5] Anaqua – "Using AI to Protect Brands from Counterfeiting in E-Commerce," citing 2025 OECD figure of $467 billion in global trade in fake goods. https://www.anaqua.com/resource/using-ai-to-protect-brands-from-counterfeiting-in-e-commerce/
[6] Investing.com – "Klaviyo Q1 2026 slides: AI push drives beat, margins hit record high," May 5, 2026. https://www.investing.com/news/company-news/klaviyo-q1-2026-slides-ai-push-drives-beat-margins-hit-record-high-93CH-4661437
[8] Palo Alto Networks – "Palo Alto Networks Introduces Idira: the Next-Generation Identity Security Platform Built for the AI Enterprise," May 12, 2026. https://www.paloaltonetworks.com/company/press/2026/palo-alto-networks-introduces-idira--the-next-generation-identity-security-platform-built-for-the-ai-enterprise
[9] Simply Wall St – "AppLovin's AI-Fueled Profit Surge and Capital Moves Could Be A Game Changer For AppLovin (APP)," May 2026. https://simplywall.st/stocks/us/software/nasdaq-app/applovin/news/applovins-ai-fueled-profit-surge-and-capital-moves-could-be
[10] StocksToTrade – "APP Stock Jumps As Street Embraces Ad-Tech Growth Story," May 27, 2026. https://stockstotrade.com/news/applovin-corporation-app-news-2026_05_27-2/
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