APP AppLovin
$267.43
▼ 4.2%Updated Oct 16, 2:25 PM ET
Report Card
APP at a glance — five pillars scored 0–100 from real filed financials.
How the 0–100 rating is calculatedOverall: Strong · 78/100. A wider, greener shape means more pillars look healthy. Dividends scores 0 when a company pays none — that is a choice, not a flaw.
Price — Past Year
▲ Up 36.4% in the year to Jul 6, 2026
Key Metrics
Market Cap
$177.06B
P/E
22.92x
Forward P/E (est.)
16.37x
ROE
222.0%
Revenue Growth
40.0%
EPS Growth
110.3%
Profit Margin
64.3%
FCF Yield
0.3%
Debt / Equity
1.65x
ROIC
49.0%
Interest Coverage
—
Current Ratio
4.3x
Dividend Yield
—
Implied Growth (rev. DCF)
—
Rating Score
78/100
Business Overview
AppLovin (APP) is a large-cap company in the Application Software industry, part of the Information Technology sector of the S&P 500, with a market value around $177.06B.
In its latest reported year it generated about $5.48B in revenue and $3.33B in net profit.
Our model rates APP Strong (78/100) on growth, profitability, financial health, and valuation. The summary below is built from its filed financials and current ratios and refreshes automatically.
Economic Moat
Evidence of durable competitive advantage in the filed financials (7 years of history).
Profit margins and economic moats, explainedThe filed history looks like a business competitors struggle to attack: high and steady margins, revenue that grows through cycles, and strong returns on capital.
59.0% average over the last 3 years
±29.2 pts around 28.0% across 7 years
grew in 5 of the last 6 year-over-year periods
positive in 7 of 7 years
49.0% latest fiscal year
A moat can't be proven by numbers alone — this scores the evidence a durable advantage leaves behind (pricing power, consistency, returns on capital), computed the same way for every stock. Pair it with the business overview before concluding anything.
Technical Analysis (Educational)
Technical analysis reads price and volume to judge momentum and timing. It complements the fundamentals above — it does not replace them. Here is what APP's chart says today, with each tool explained.
Trend — moving averages. A moving average is the average closing price over a window, which smooths out daily noise. APP trades near $267.43, below its 50-day average ($500.64) and 200-day average ($539.91). Price below both averages is a downtrend — momentum is against buyers for now.
Momentum — RSI. The Relative Strength Index runs 0–100 and measures how strong recent gains are versus losses. Above 70 is "overbought", below 30 "oversold". At 59 it is in neutral territory — neither stretched nor washed out.
MACD. MACD compares two moving averages to flag shifts in momentum. Its histogram is currently positive — short-term momentum is improving.
Volatility — ATR. Average True Range is the typical daily move. APP's is $34.25 (~12.8% of price), so swings of about that size each day are normal — handy for setting a stop that isn't too tight.
Support & resistance. In the month to Jul 6, 2026, APP found buyers near $418.46 (support) and sellers near $595.00 (resistance); its 52-week range then was $325.58–$745.61. A decisive break beyond either edge often marks the next move.
Volume. The latest session traded 1.1× the 20-day average — about normal. Rising volume on up-days suggests real buying; on down-days, real selling.
Educational information to help you read a chart — not a recommendation or a forecast. The indicators were last computed on Jul 6, 2026; the price is current.
Revenue Growth
4Y CAGR
18.4%
Revenue moved from $994.10M in 2019 to $5.48B in 2025, a 32.9% compound annual growth rate. The most recent year grew a strong 40.0% year over year. Consistent top-line growth is one sign of healthy demand.
Profitability
Gross Margin
88.4%
Operating Margin
75.8%
Net Margin
60.8%
ROE
222.0%
AppLovin keeps about 64.3% of each sales dollar as net profit, with a 88.4% gross margin and 75.8% operating margin. Return on equity is 222.0% and return on invested capital about 49.0%. Margins this wide usually signal pricing power or a cost advantage.
Debt Analysis
Total Debt
$3.51B
Net Debt
$459.68M
Net Debt / EBITDA
0.11x
Debt / Equity
1.65x
Leverage: debt-to-equity is 1.6x, with a current ratio of 4.3x. That is elevated leverage, which raises risk if earnings or rates move against it. It carries roughly $3.51B of total debt against $3.05B of cash.
Cash Flow Analysis
Operating CF
$3.97B
Free Cash Flow
$3.97B
FCF Margin
72.5%
In the latest year AppLovin produced about $3.97B of operating cash flow and $3.97B of free cash flow after capital spending. That is a free-cash-flow yield of about 0.3% on today's price. Cash flow is what ultimately pays shareholders, so it is worth tracking over time.
Valuation Analysis
P/E
22.92x
P/S
31.93x
P/B
55.37x
EV / EBITDA
—
APP trades at 22.9x trailing earnings (about 16.4x on estimated forward earnings), 31.9x sales, and 55.4x book value. That is a fairly typical valuation for a profitable company.
Metrics vs. Sector Range
Where APP sits versus the Information Technology companies we cover.
Bands show the middle half (25th–75th percentile) of the 98 Information Technology companies in our coverage that have fundamentals data — the peer-relative anchor professional comps analysis uses. Context only — not investment advice.
Sector Peer Comparison
How APP stacks up against its Information Technology peers — valuation, profitability, and growth versus the sector median.
Among the 98 rated Information Technology companies we cover, APP ranks #12 by our overall rating. It trades at a discount versus the sector on earnings (22.9x P/E vs. 36.2x median) with a higher return on equity (222.0% vs. 17.5%) and faster revenue growth (40.0% vs. 17.7%).
P/E vs sector
22.9x
median 36.2x
ROE vs sector
222.0%
median 17.5%
Growth vs sector
40.0%
median 17.7%
Sector rank
#12
of 98 rated
Valuation vs. quality map
The sweet spot is upper-left: more profitable (higher ROE) for a lower P/E. Dashed lines mark the sector median.
Peers are the closest Information Technology companies by sub-industry and size, preferring ones with full data. Sector medians and rank use the 98 rated companies among the 230 Information Technology stocks we cover. Educational, not a recommendation.
5-Year Projection Model
Project revenue → earnings → price. Edit the assumptions to build your own case.
What drives this projection, and its limits2030 scenario price range (Base Case)
$311.65 – $511.99
vs. $267.43 today · implied CAGR 3% – 14%
| Metric | 2026 | 2027 | 2028 | 2029 | 2030 |
|---|---|---|---|---|---|
| Revenue | $7.67B | $10.74B | $15.04B | $21.05B | $29.48B |
| Net income | $3.84B | $5.37B | $7.52B | $10.53B | $14.74B |
| EPS | $5.79 | $8.11 | $11.36 | $15.90 | $22.26 |
| Share price (low) | $81.12 | $113.57 | $159.00 | $222.61 | $311.65 |
| Share price (high) | $133.28 | $186.59 | $261.22 | $365.71 | $511.99 |
| CAGR (low–high) | -70% / -50% | -35% / -16% | -16% / -1% | -4% / 8% | 3% / 14% |
Educational scenario model, not a forecast or investment advice. It starts from the latest annual revenue in SEC filings. By default, growth is trailing revenue growth (held between 3% and 45% a year), the net margin is the latest one (held between 3% and 50%, so a loss-making company is modeled with a small profit), and the Base case P/E runs from 60% to 100% of today's. Carrying recent growth forward five years can miss badly in either direction. Outputs are only as good as the assumptions.
Bull Case
The case for APP:
- Revenue is growing 40.0% a year, a sign of real demand.
- High net margins (64.3%) point to pricing power or efficiency.
- Strong return on equity (222.0%) shows capital is put to work well.
- Our model's overall read is Strong (78/100).
Bear Case
The case against APP:
- Elevated leverage (debt/equity 1.6x) adds financial risk.
- Limited free cash flow at today's price.
Key Risks
Balance-sheet risk — debt/equity of 1.6x magnifies the impact of higher rates or weaker earnings.
Market risk — sector rotation, the economic cycle, and broad sentiment move the stock regardless of fundamentals.
Investment Thesis
On balance, the fundamentals screen favourably: AppLovin is a large-cap information technology business still growing nicely, with solid profitability, and a heavier debt load to watch. It trades at 22.9x earnings, which our model scores Strong (78/100). Weigh this against your own goals and time horizon — this is educational information, not a recommendation.
Analyst Ratings
What 37 Wall Street analysts covering APP recommend (September 2026). Consensus is a useful sanity check — not a substitute for your own homework.
Analysts have turned more cautious over the last three months (-11 pts of buy ratings).
Latest SEC Filings
APP's most recent filings, straight from SEC EDGAR. Annual and quarterly reports are the deep dives; 8-Ks flag material events the moment they happen. How to read a 10-K
In the Idea Lab
APP — frequently asked questions
Is APP a good stock to buy?
We don't give buy or sell advice. Our model rates AppLovin Strong (78/100) based on its growth, profitability, financial health, and valuation — use that as a research starting point and make your own decision.
What is APP's rating on The Stocks School?
AppLovin currently scores 78/100 (Strong) on our transparent model, which weighs real fundamentals: growth, margins, returns on capital, balance-sheet strength, and valuation.
How our ratings work →Where does APP's data come from?
Live price data plus real fundamentals and 5-year financials pulled directly from AppLovin's SEC filings — refreshed automatically, not hand-entered.
How is the 5-year projection for APP calculated?
It's a scenario model. It starts from the latest annual revenue and net margin in SEC filings, grows revenue at an assumed rate (trailing revenue growth by default), and applies a P/E range built around today's multiple to show the resulting share-price range. When a stock has no growth or P/E data, the starting values are placeholders. It's a tool for thinking, not a prediction.
Is this APP analysis financial advice?
No. Everything on this page is educational research, not financial advice or a recommendation to buy or sell APP. Always do your own research and consider a licensed professional.
Data notice. Fundamentals and financial statements are sourced from company filings (SEC EDGAR) and market-data providers; prices and market caps refresh on trading days and may be delayed. Ratings, projections, technical signals, and written summaries are model- or rule-generated for education and may simplify or lag the latest filings.
Not advice. Nothing on this page is investment advice or a recommendation to buy, hold, or sell any security. Do your own research and consult a licensed financial professional before investing.