AppLovin Stock To $474?

AppLovin (APP) stock has fallen 20% during the past day, and is currently trading at $366.91. Our multi-factor assessment suggests that it may be time to buy more shares of APP stock. We have, overall, a positive view of the stock, and a price of $474 may not be out of reach. We believe there is not much to fear in APP stock given its overall Very Strong operating performance and financial condition. Hence, despite its Very High valuation, the stock appears Attractive but Volatile.

Below is our assessment:

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Let’s get into details of each of the assessed factors but before that, for quick background: With $124 Bil in market cap, AppLovin provides a software platform for mobile app developers to enhance app marketing and monetization, featuring AppDiscovery, a marketing solution that matches advertiser demand with publisher supply through auctions.

[1] Valuation Looks Very High

This table highlights how APP is valued vs broader market. For more details see: APP Valuation Ratios

[2] Growth Is Very Strong

• AppLovin has seen its top line grow at an average rate of 36.0% over the last 3 years
• Its revenues have grown 70% from $3.2 Bil to $5.5 Bil in the last 12 months
• Also, its quarterly revenues grew 66% to $1.7 Bil in the most recent quarter from $1 Bil a year ago.

This table highlights how APP is growing vs broader market. For more details see: APP Revenue Comparison

[3] Profitability Appears Very Strong

• APP last 12 month operating income was $4.1 Bil representing operating margin of roughly 70%
• With cash flow margin of 72%, it generated nearly $3.97 Bil in operating cash flow over this period
• For the same period, APP generated nearly $3.3 Bil in net income, suggesting net margin of about 61%

This table highlights how APP profitability vs broader market. For more details see: APP Operating Income Comparison

[4] Financial Stability Looks Very Strong

• APP Debt was $3.5 Bil at the end of the most recent quarter, while its current Market Cap is $124 Bil. This implies Debt-to-Equity Ratio of 2.8%
• APP Cash (including cash equivalents) makes up $2.5 Bil of $7.3 Bil in total Assets. This yields a Cash-to-Assets Ratio of 34%

[5] Downturn Resilience Is Very Weak

APP has fared much worse than the S&P 500 index during various economic downturns. We assess this based on both (a) how much the stock fell and, (b) how quickly it recovered.

2022 Inflation Shock

• APP stock fell 91.9% from a high of $114.85 on 11 November 2021 to $9.30 on 27 December 2022 vs. a peak-to-trough decline of 25.4% for the S&P 500.
• However, the stock fully recovered to its pre-Crisis peak by 16 September 2024
• Since then, the stock increased to a high of $733.60 on 22 December 2025 , and currently trades at $366.91

But the risk is not limited to major market crashes. Stocks fall even when markets are good – think events like earnings, business updates, outlook changes. Read APP Dip Buyer Analyses to see how the stock has recovered from sharp dips in the past.

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