Wall Street Thinks AppLovin Stock Is a Buy. Here's Why I Don't.
2026-03-06 07:02:00 ET
Wall Street loves AppLovin (NASDAQ: APP) right now. The company last month reported 70% revenue growth in 2025, to $5.48 billion, and generated $3.95 billion in free cash flow. Its Q4 revenue hit $1.66 billion with a pretty remarkable 84% adjusted EBITDA margin, and guidance calls for another revenue step-up in early 2026. Following the report, it seems like every analyst has rushed in with upgrades and higher price targets.
The numbers are spectacular, but that's exactly why I think they're dangerous.
On paper, AppLovin looks diversified: It owns an AI self-serve ad engine (Axon), a mobile ad exchange (Max), and a growing e-commerce ad platform. Management talks about "omnichannel performance marketing" and "multi-vertical expansion."
NASDAQ: APP
APP Trading
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