AppLovin (6RV) AI Stock Analysis

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AppLovin

(XETRA:6RV)

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Positive Factors

Exceptional ProfitabilityAppLovin’s unusually high gross, operating, and net margins indicate strong software economics and substantial operating leverage. This profitability provides resources to fund model development, support customer growth, and absorb investment needs while preserving significant earnings capacity over the next several quarters.

Negative Factors

Incomplete Model RolloutBecause the next-generation system is not fully deployed, some expected performance benefits remain dependent on continued research and execution. Delays or uneven rollout results could defer growth contributions, complicate forecasting, and leave the business reliant on the prior architecture for longer.

AppLovin (6RV) vs. iShares MSCI Germany ETF (EWG)

Market Cap: EUR 108.87B
Dividend Yield: ―
Average Volume (3M): 924
Price to Earnings (P/E): 23.9
Beta (1Y): 1.48
Revenue Growth: 30.80%
EPS Growth: 77.52%
Country: Germany
Employees: 887
Sector: Communication Services
Sector Strength: 60
Industry: Software - Application

AppLovin Business Overview & Revenue Model

Company Description

AppLovin Corporation provides a specialized software platform focused on empowering mobile application developers to enhance the marketing and revenue generation of their products. With operations spanning the United States and international markets,...

AppLovin Earnings Call Summary

Earnings Call Date:Nov 03, 2026(Q3-2026)|% Change Since:30.17%|Next Earnings Date:Feb 16, 2027

Earnings Call SentimentPositive

The call was strongly positive. AppLovin reported record revenue, net income, adjusted EBITDA, margins, and free cash flow, exceeded the high end of guidance, delivered rapid growth in both gaming and consumer advertising, and provided a strong fourth-quarter outlook. The main challenges were the still-partial model rollout, seasonal e-commerce dynamics, early-stage consumer onboarding and connected TV initiatives, and limited visibility into the precise contribution of individual growth drivers.

Positive Updates

Record Revenue and Guidance Outperformance

Third-quarter revenue reached a record $2.18 billion, up 55% year-over-year and more than $200 million above the prior quarter. Revenue exceeded the high end of guidance by approximately $100 million, and the company reported its largest sequential dollar step-up in revenue.

Negative Updates

Model Rollout Remains Partial

The next-generation model rollout is still partial, and management could not provide a commitment for when the full rollout will occur or how the progression of the models will develop. The transition still requires complex research and development work.

Company Guidance

For the fourth quarter of 2026, AppLovin expects revenue between $2.365 billion and $2.395 billion, representing approximately 43%-44% year-over-year growth and 8%-10% sequentially, and adjusted EBITDA between $1.995 billion and $2.025 billion, representing approximately 43%-45% year-over-year growth; at the midpoint, this guidance implies full-year 2026 revenue and adjusted EBITDA growth of more than 50%. The outlook reflects normal seasonality, further scaling in the consumer vertical, significant model improvements that are already live and performing, and continued investment in training compute for new model development, while full-year free cash flow conversion is expected to be roughly 70%-75% of adjusted EBITDA. Over the long term, the company believes the business can compound at roughly 30% annually, expects to operate at roughly one times net leverage, and said MAX supply growth remains strong double digits every year.

AppLovin Risk Analysis

AppLovin disclosed 47 risk factors in its most recent earnings report. AppLovin reported the most risks in the "Finance & Corporate" category.

Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy

Latest Risks Added

0 New Risks

AppLovin Peers Comparison

Overall Rating

UnderperformOutperform

Sector (60)

Financial Indicators

DE:6RV against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
DV	80Outperform	$2.12B	33.02	5.82%	―	7.16%	51.45%
ZETA	78Outperform	$7.98B	-3348.86	-0.26%	―	35.91%	94.31%
PUBM	64Neutral	$745.20M	-55.93	-5.41%	―	-1.04%	-710.67%
U	62Neutral	$18.69B	-61.77	-10.86%	―	20.86%	24.19%
Sector *	60Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
APPS	53Neutral	$1.16B	-42.81	-14.77%	―	19.24%	60.41%

* Communication Services Sector Average

Performance Comparison

DE:6RV and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
DE:6RV	AppLovin Corp. Class A	314.55	-226.75	-41.89%
APPS	Digital Turbine Inc.	9.67	3.68	61.44%
U	Unity Software, Inc.	48.80	8.77	21.91%
PUBM	Pubmatic Inc	16.78	9.38	126.76%
DV	Doubleverify Holdings, Inc.	13.54	4.15	44.20%
ZETA	Zeta Global Holdings Corp. Class A	29.47	9.96	51.05%

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.

AppLovin AI Stock Analysis