Can AppLovin Outrun Shopify in the Next Rally?
Shopify surged 5.1% during the past Day. You may be tempted to buy more, or may want to reduce your exposure. But there is an entirely different perspective you might be missing. Is there a better alternative? Turns out, its peer AppLovin gives you more. AppLovin (APP) stock offers superior revenue growth across key periods, better profitability, and relatively lower valuation vs Shopify (SHOP) stock, suggesting you may be better off investing in APP
- APP’s quarterly revenue growth was 68.2%, vs. SHOP’s 31.5%.
- In addition, its Last 12 Months revenue growth came in at 86.4%, ahead of SHOP’s 30.2%.
- APP leads on profitability over both periods – LTM margin of 52.5% and 3-year average of 35.7%.
These differences become even clearer when you look at the financials side by side. The table highlights how SHOP’s fundamentals stack up against those of APP on growth, margins, momentum, and valuation multiples.
Valuation & Performance Overview
| SHOP | APP | Preferred | |
|---|---|---|---|
| Valuation | |||
| P/EBIT Ratio | 121.3 | 63.5 | APP |
| Revenue Growth | |||
| Last Quarter | 31.5% | 68.2% | APP |
| Last 12 Months | 30.2% | 86.4% | APP |
| Last 3 Year Average | 26.8% | 36.0% | APP |
| Operating Margins | |||
| Last 12 Months | 15.7% | 52.5% | APP |
| Last 3 Year Average | 7.6% | 35.7% | APP |
| Momentum | |||
| Last 3 Year Return | 264.2% | 4472.8% | SHOP |
Note: For “Last 3 Year Return” metric, preferred stock is one with higher returns unless the returns are too high (>300%) which creates risk of sell off.
See more revenue details: SHOP Revenue Comparison | APP Revenue Comparison
See more margin details: SHOP Operating Income Comparison | APP Operating Income Comparison
See detailed fundamentals on Buy or Sell APP Stock and Buy or Sell SHOP Stock. Below we compare market return and related metrics across years.
Historical Market Performance
| 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | Total [1] | Avg | Best | |
|---|---|---|---|---|---|---|---|---|---|
| Returns | |||||||||
| SHOP Return | 185% | 22% | -75% | 124% | 36% | 47% | 294% | ||
| APP Return | – | – | -89% | 278% | 713% | 102% | 593% | <=== | |
| S&P 500 Return | 16% | 27% | -19% | 24% | 23% | 16% | 111% | ||
| Monthly Win Rates [3] | |||||||||
| SHOP Win Rate | 67% | 67% | 25% | 67% | 50% | 70% | 58% | ||
| APP Win Rate | – | 75% | 8% | 83% | 83% | 60% | 52% | ||
| S&P 500 Win Rate | 58% | 75% | 42% | 67% | 75% | 70% | 64% | <=== | |
| Max Drawdowns [4] | |||||||||
| SHOP Max Drawdown | -19% | -8% | -81% | 0% | -33% | -28% | -28% | ||
| APP Max Drawdown | – | – | -90% | -8% | -4% | -32% | -22% | ||
| S&P 500 Max Drawdown | -31% | -1% | -25% | -1% | -2% | -15% | -12% | <=== | |
[1] Cumulative total returns since the beginning of 2020
[2] 2025 data is for the year up to 12/2/2025 (YTD)
[3] Win Rate = % of calendar months in which monthly returns were positive
[4] Max drawdown represents maximum peak-to-trough decline within a year
No matter how good the numbers, stock investment is never a smooth ride. There is a risk you must factor in. Read APP Dip Buyer Analyses and SHOP Dip Buyer Analyses to see how these stocks have fallen and recovered in the past.
Still not sure about SHOP or APP? Consider portfolio approach.
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Single markets are unpredictable but different assets react differently. A multi asset portfolio cuts downside shocks while keeping upside on the table.
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