Full-Time
Mobile app monetization, user acquisition, analytics
$153k - $200k/yr
Palo Alto, CA, USA
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AppLovin provides a suite of tools for mobile app developers to grow and monetize their apps. It offers user acquisition services to help apps reach new users, an ad monetization platform that automates in-app advertising to maximize revenue, and analytics to study user behavior and improve performance. The company earns revenue from running in-app ads for developers and by charging for user acquisition services, while also expanding through acquisitions (e.g., Machine Zone) to integrate new technologies. AppLovin's goal is to be a comprehensive platform that supports app developers through the entire app lifecycle, from attracting users to monetizing and optimizing their apps.
Company Size
501-1,000
Company Stage
IPO
Headquarters
Palo Alto, California
Founded
2012
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AppLovin Corp shares fell below $300 for the first time since May 2024, prompting Piper Sandler to cut its price target by $60 to $325 whilst maintaining a neutral rating. The firm believes the business remains high quality but raised concerns about growth sustainability following the company's second-quarter results. AppLovin reported Q2 revenue of $1.92 billion, slightly missing estimates of $1.94 billion, though this represented a 53% year-on-year increase. Adjusted earnings per share of $3.76 marginally beat expectations of $3.74. Wells Fargo previously reduced its target to $325 from $357, noting that whilst player engagement remains strong, new game uptake is slowing. AppLovin shares have declined over 50% this year.
AppLovin and Kratos Defense & Security Solutions offer investors contrasting technology plays: high-margin software versus defence hardware. AppLovin provides AI-driven advertising technology for mobile app monetisation. After divesting its gaming studio in June 2025, the company now focuses exclusively on advertising technology. In FY 2025, revenue reached nearly $5.5 billion, up approximately 17% year-over-year. Net income rose to roughly $3.3 billion from $1.6 billion in 2024, representing a net margin close to 61%. The company generated more than $3.9 billion in free cash flow, exceeding its total debt of $3.52 billion. Kratos develops specialised defence technology, including hypersonic systems and satellite communications, often working as a contractor for the US Air Force. However, 68% of its revenue comes from US government contracts, creating customer concentration risk.
Greenhaven Road Capital highlighted AppLovin Corporation in its second-quarter 2026 investor letter, describing it as an AI company specialising in ad matching. The fund holds a 1% position in the mobile technology company. AppLovin generated $5.48 billion in revenue in 2025, marking approximately 70% year-over-year growth. The company posted $3.95 billion in free cash flow with an 88% conversion rate of adjusted EBITDA to free cash flow. Greenhaven noted AppLovin should generate more than $6 million of EBITDA per employee in 2026 whilst reducing headcount and maintaining high growth rates. Shares traded at less than 20 times 2027 free cash flow. As of 14 August 2026, AppLovin closed at $315.44 per share with a market capitalisation of $105.97 billion. The stock declined 28.07% over the previous 52 weeks.
AppLovin achieved a triple-digit Rule of 40 score, rivalling Palantir Technologies' 155, whilst trading at a significantly lower valuation with a forward price-to-earnings ratio below 19. The adtech company differentiates itself by charging advertisers only when ads convert, using its Axon 2 models to drive growth beyond its original gaming niche. Second-quarter revenue grew 53% year-over-year, though this marked a slowdown from 59% in the first quarter due to gaming advertising weakness and model upgrade timing. Non-gaming revenue exceeded the fourth quarter by 28%. Management reports the model update is now live and third-quarter performance has started strongly. The company targets long-term compound annual revenue growth of 30% as it expands beyond gaming into broader markets.
AppLovin's stock has dropped 53% year-to-date despite reporting 53% revenue growth to $1.92 billion in Q2 2026. The company missed revenue consensus by less than 1%, its first guidance miss since its 2021 IPO, triggering a nearly $40 billion market value loss. CEO Adam Foroughi explained that AI model improvements were lighter than usual during the quarter. Bank of America downgraded the stock from Buy to Neutral on 11 August, questioning whether AppLovin's AXON advertising engine is truly self-improving or relies heavily on engineer-led upgrades. The company achieved an 84% adjusted EBITDA margin and bought back $551 million in stock. It guided Q3 revenue to $2.06–$2.09 billion. Hedge fund ownership declined from 108 funds in Q4 2025 to 91 in Q1 2026.