Orin
APPNasdaq·Software - Application

AppLovin Corporation APP

Market cap $105.9BP/E 24.1× trailingGross margin 88.5%Reports Wed 4 Nov, after the close
$315.20
−0.05 (−0.02%)live 09:30 ET
52-wk $297.50 – $745.61
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Orin's take
0.62conviction · moderate
Refreshed 21 Aug · take v8. A new filing or a print queues the next refresh.

AppLovin's FY2025 results remain exceptional — revenue of $5.48B with a 75.75% operating margin, 71.94% FCF margin, and 69.99% revenue growth — but the stock has fallen to $310.79 as of 2026-08-19, trading well below its 50-day ($435.24) and 200-day ($503.45) moving averages with an RSI of 30.54 signaling oversold conditions. The PE of 23.78 sits roughly 61% below the peer median of 61.62 and the EV/EBITDA of 19.01 is similarly discounted, suggesting much of the Q2 miss and negative Jefferies sentiment is now priced in.

However, persistent insider selling — net dispositions of 1,168,974 shares worth $600.7M over 24 months across 685 sales versus 25 acquisitions — and the unclear trajectory of the advertising-model improvements that caused the Q2 shortfall argue for patience until Q3 results clarify whether AXON 2.0 and e-commerce onboarding can reaccelerate growth.

What could go wrong

  • Growth deceleration persists. Q2 2026 revenue and EBITDA missed guidance per Seeking Alpha; if AXON 2.0 self-serve GA and e-commerce onboarding in Q3 fail to reaccelerate growth, the premium multiple on P/S of 15.29 (189.9% above peer median of 5.27) compresses further.
  • Persistent insider selling. Over 24 months, insiders executed 685 dispositions versus 25 acquisitions for net selling of $600.7M, signaling limited insider conviction at current levels.
  • Sentiment deterioration. Jefferies reports the most negative investor mood in years of covering the company, with questions about a Trade Desk-style downturn representing the most negative line of questioning received.
  • Technical breakdown deepens. Stock at $310.79 is below both 50-day ($435.24) and 200-day ($503.45) moving averages with negative MACD histogram; a failure to stabilize could trigger further institutional exits.

What would change my mind

Q3 2026 results reaccelerate. Q3 revenue and EBITDA beat guidance, demonstrating AXON 2.0 and e-commerce onboarding are driving growth reaccelerationbullish
Insider buying emerges. Insiders begin net open-market purchases of Class A common stock after 24 months of net sellingbullish
Smart money continues deteriorating. 13F smart money score falls below zero again in the Q3 2026 filing (due ~2026-11-14) and fund count drops below 60bearish
Further guidance cut. Management lowers FY2026 revenue or EBITDA guidance at Q3 results or an interim updatebearish

Where this comes from: FMP FY2025 annual + derived_metrics · derived_metrics FY2025 · technicals as of 2026-08-19 · peer_relative composite. Orin's read on APP; not advice.

Twelve months actual closes to 2026-09-23 · actual filings

Sept 25Nov 25Jan 26Mar 26May 26Jul 26

50-day average 200-day average · volume below

Largest holders · 13F Q2 2026

Money flow
FilerPositionOf fund
Vanguard Capital Management$9.1B0.2% of fund
Fmr$8.9B0.4% of fund
State Street$6.2B0.2% of fund
Invesco$5.7B0.4% of fund
Capital World Investors$4.2B0.5% of fund
Geode Capital Management$3.8B0.2% of fund

128 filers · quarter ended Q2 2026 · positions, not flows

Insiders, last 24 months: 715 Form 4 filings, net −$605.2M. Of the 50 on hand, 0 were open-market purchases and 36 sales— the rest are grants, option exercises and tax withholding.

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Where it trades

vs its own 5y · Technology
MetricNowOwn medianSector
P/E24.1×53.3×
EV/EBITDA19.3×47.1×
P/S15.51×10.96×
P/B33.5×14.3×

Its P/E sits 20th percentile of its own last 5 years (−0.54σ from its own mean).

What the price assumes

11.7%

free-cash-flow growth every year for 10 years, discounted at 10%, is what today’s price implies — starting from $3.9B of trailing free cash flow. It is an assumption the market is making, not a forecast Orin is making.

What Wall Street published

27 firms · 2026-09-23
Consensus target

$532

$325$790 · +69% against today's price

How they rate it
  • 21 buy or overweight
  • 5 hold
  • 1 underweight or sell

The analysts’ consensus and their own ratings, not Orin’s. A target is a twelve-month opinion published by the firm that wrote it.

Against the companies it is compared to

median P/E 28.1× of 2 peers
CompanyMarket capP/EEV/EBITDAGrossNetROE
APPAppLovin Corporation$106B24.1×19.3×88.5%64.6%193%
DDOGDatadog, Inc.$90B343.2×79.5%4.5%5%
INTUIntuit Inc.$78B17.4×11.4×80.9%21.3%23%
WDAYWorkday, Inc.$50B38.9×32.1×75.8%12.3%17%

The median is of the 2 peers listed above and nothing else — check it against the column. This company trades 14.2% below it. The peer set is the vendor’s, so a company can appear here that a person would not have chosen.

What it has traded at

P/E by fiscal year
FY19 181.1×FY25 68.5×

What its sector has traded at

Technology
FY14 9.0×FY26 48.0×

Two scales, drawn separately on purpose: a sector median and one company’s multiple are not the same number and putting them on one axis invites a comparison neither series supports.

Discounted cash flow

not recomputed since
ModelFair valueAgainstComputed
Standard DCF$126$500.37 · −75%2026-06-10
Levered DCF$133$500.37 · −73%2026-06-10

The vendor’s intrinsic-value models. Treat them as a low-growth anchor — for a fast grower the market routinely pays well above a DCF. These were computed against the price in the “against” column, not today’s.

Every estimate on one scale

price $315.20
52-week range$298 – $746
Analyst targets$325 – $790
Standard DCF$126 as of 2026-06-10, when it was $500.37
Levered DCF$133 as of 2026-06-10, when it was $500.37
At own 5y-median P/E (68×)$895
At 5y P/E range (-20–864×)$-265 – $11290
At sector P/E (53×)$696

The vertical rule is the current price. Ranges and point estimates are the backend’s, published as they were calculated; an arrow means the estimate sits beyond this scale, and its number is on the right.