Key Stats for AppLovin Stock
- Price Change for AppLovin stock: -8.7%
- $APP Share Price as of Nov. 11: $595
- 52-Week High: $746
- $APP Stock Price Target: $719
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What Happened?
AppLovin (APP) stock fell close to 9% yesterday as investors rotated out of overvalued tech stocks amid concerns over a broader market pullback.
In the last 12 months, AppLovin stock has more than doubled. Moreover, it has returned over 4,000% in the past three years, valuing the company at a market cap of $201 billion. Despite its market-beating returns, APP stock is down 17% from all-time highs.
AppLovin has increased its sales from $2.82 billion in 2022 to $4.71 billion in 2024. In Q3 of 2025, revenue hit $1.40 billion versus estimates of $1.34 billion, while adjusted EBITDA reached $1.16 billion against expectations of $1.09 billion.
The 82% EBITDA margin represented a sequential improvement despite the company navigating its major October 1 self-service platform launch.
For Q4, AppLovin guided to revenue between $1.57 billion and $1.6 billion compared to the Street’s $1.54 billion estimate, implying 12-14% sequential growth.
CEO Adam Foroughi highlighted that self-service advertisers brought on since October 1 are seeing spending grow roughly 50% week-over-week, an early signal the platform is gaining traction despite being just a month old.
The results come as AppLovin navigates heightened scrutiny around its data practices.
Shares dropped about 15% since late September following reports the SEC and multiple state regulators are investigating its Array product and data collection methods.
A related class-action lawsuit filed in March could cost up to $750 million if it proceeds to trial, according to Bloomberg Intelligence.
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What the Market Is Telling Us About AppLovin Stock
The 50% week-over-week growth in self-service advertiser spending is encouraging given these are brand new customers still learning the platform.
Foroughi emphasized the seamless launch with no major bugs, minimal customer complaints, and effective filtering of low-quality advertisers.
What’s striking is management’s confidence the platform can scale without a large sales force. AppLovin is actively testing paid marketing to acquire advertisers and embedding AI agents into onboarding flows to minimize human support needs.
The company already has automated bots checking creative quality and website standards, with plans to roll out generative AI-created ad content in coming weeks or months using tools like Sora 2 and Veo 3.
The core gaming advertising business remains robust with continued model improvements driving results.
Foroughi reiterated confidence in 20-30% long-term growth rates for the core category, with Q3 beating even that elevated benchmark.
The MAX supply-side platform continues growing at “very healthy rates” as more publishers integrate ads and existing supply monetizes better.
For AppLovin stock to maintain momentum, several things need to happen.
- It needs to successfully transition from referral-only to general availability in 2026 without overwhelming its support infrastructure.
- The regulatory investigations need to resolve without material penalties or restrictions on data practices that underpin the recommendation engine’s effectiveness.
- Management needs to demonstrate that adding e-commerce and web advertiser density actually expands gaming customer spend rather than cannibalizing it.
The company’s S&P 500 inclusion in 2025 brings broader institutional ownership but also higher expectations.
With APP stock trading at lofty valuations execution must be flawless. The planned tests of generative AI creative tools and paid customer acquisition represent meaningful product innovations that could unlock the next leg of growth.
But investors should expect continued volatility as regulatory headlines compete with strong business momentum for attention.
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Disclaimer:
Please note that the articles on TIKR are not intended to serve as investment or financial advice from TIKR or our content team, nor are they recommendations to buy or sell any stocks. We create our content based on TIKR Terminal’s investment data and analysts’ estimates. Our analysis might not include recent company news or important updates. TIKR has no position in any stocks mentioned. Thank you for reading, and happy investing!
