AppLovin shares have fallen more than half over the past year and trade at 20.0 times earnings, below Meta Platforms and Magnite. Over the latest four fiscal quarters, the company posted 60.6% revenue growth and kept 77.4% of revenue as operating profit, compared with 8.3% and 15.6% for Magnite. Revenue growth has slowed each quarter, from 68.2% in fiscal Q3 2025 to 52.8% in fiscal Q2 2026, and management guided for 46% to 48% growth in fiscal Q3 2026. The growth is driven by improved ad models that AppLovin is now selling to advertisers outside gaming, including through its Ads Manager platform. The article concludes that investors are not overpaying for AppLovin and says the fiscal Q3 2026 revenue report will be the key measure to watch.
Summary written by Upside AI from the original article. Read the source for full details.
Read the original on Yahoo Finance ↗
Keywords
AppLovinvaluationearningsadvertising
Open a keyword to see other news on the same topic.
Related news
- Why Is Everyone Ignoring Trade Desk Stock's High Cash Yield?
Trade Desk (TTD) closed on October 16, 2026 at $12.23 a share, 91.2% below its December 4, 2024 high, with a market value of $5.7 billion. Its free cash flow over the last twelve months equals 14.8% of that value, versus 4.4% for the median S&P 500 company. Free cash flow for the four quarters ended June 30, 2026 reached $849 million, up from $746 million, even though net income still declined. However, management guided fiscal Q3 2026 revenue to at least $650 million, below $739 million a year earlier, and cut 15% of staff in September. The next report, due around November 5, 2026, will show whether cash keeps growing as sales slow.
- Alphabet Poised for Strong Third-Quarter Search Revenue Growth, Deutsche Bank Says
- Can Ad-Supported Streaming Momentum Boost Netflix's Q3 Results?
Netflix is scheduled to report third-quarter 2026 results on Oct. 20, with guidance for revenue of $12.86 billion (about 12% growth) and adjusted EPS of 82 cents. Advertising is expected to be the key growth driver, as the company targets roughly $3 billion in 2026 ad revenue, about double the 2025 level. Operating margin is projected at 33.2%, up from 28.2% a year earlier. However, live programming accounts for about 5% of content spend but only about 1% of view hours, and first-half view hours grew just 2%. The full-year outlook calls for revenue of $51–$51.4 billion and a 31.5% operating margin, though currency volatility and content timing remain risks.
- Should You Buy, Sell, or Hold META Stock Before Q3 Earnings Release?
Meta Platforms (META) reports third-quarter 2026 results on Oct. 21, with revenue guidance of $61 billion to $64 billion. The Zacks consensus is $63.24 billion in revenue, up 23.42% year over year, and $6.54 per share in earnings, down 9.79% from the year-ago quarter. Meta beat the consensus in three of the last four quarters, with an average surprise of 3.46%. Advertising driven by AI is expected to support revenue, with Advantage+ passing a $75 billion annual revenue run rate, while rising AI infrastructure and depreciation costs could weigh on margins. META shares are up 7.5% year to date, trailing the sector's 15.8% gain, and trade at 6.1X forward 12-month price/sales.
- Prediction: Here's Where The Trade Desk Stock Will Be in 2029
The Trade Desk (TTD) shares trade near $12, down about 91% from their December 2024 record close of $139.51 and about 68% since the end of 2025. Q2 2026 revenue rose just 3% to $715 million while net income fell about 29%, and management guided to Q3 revenue of at least $650 million, a decline of about 12% year over year. Buybacks cut the diluted share count from about 507 million in late 2024 to 470 million by Q2 2026, and the company holds about $1.5 billion in cash and short-term investments with no debt. The author estimates the stock could reach about $16 by end-2029, a gain of about 9% a year, but this depends on a return to revenue growth that management has not forecast; if revenue settles near $2.8 billion with a 10% net margin, the stock could be worth about $7. The author says he still would not buy the shares until management's revenue forecast turns up again.
- Will Slower Growth Outlook Change Reddit Stock Narrative
Reddit reported 66.6% revenue growth over the four quarters to June 2026, but guidance for 47% to 49% growth in Q3 points to a cooler near-term pace. Beyond advertising, AI data licensing is a second growth engine, with about US$35 million in one recent quarter against roughly US$500 million in total sales. The key risk is that Google AI direct answers could reduce traffic to Reddit and dilute its monetization. The article argues the slowdown may look more like a reset in expectations than a break in the thesis, provided user engagement and data licensing deals hold up. The narrative projects US$6.0 billion in revenue and US$2.1 billion in earnings by 2029.
Related markets
Latest news
- Meta Earnings: What To Look For From META
Meta Platforms (NASDAQ:META) will report earnings this Wednesday after the market closes. Last quarter, revenue reached $60.8 billion, up 28% year on year and above analysts' expectations, though revenue guidance for next quarter slightly missed forecasts; daily active users hit 3.6 billion, up 3.4%. The market expects revenue growth of 23.6% this quarter, slowing from 26.2% a year earlier, and analysts have generally reconfirmed their estimates over the past 30 days. Over the last month, consumer internet stocks have gained 1.3% on average, while Meta is down 4.8%.
- An AI bust could come from places investors arent watching , an economist says
Concerns about an AI bubble are growing, and TS Lombard's Dario Perkins warns that investors may be overlooking other risks. Debt among smaller cloud providers, model developers and suppliers could reach $2 trillion by the end of 2027. Perkins does not see this as a systemic risk, but warns that earnings disappointments and canceled orders could ripple through the ecosystem, and that a chip glut could follow over-ordering. Much of the industry's revenue growth still comes from spending within the AI ecosystem rather than from businesses and consumers outside it. He also flags political backlash, noting that ordinary people dislike AI and nearby datacenters, and warns that one high-profile accident could turn AI toxic.
- Yen jumps after JGB auction draws big demand , euro finds relief
The yen rose 0.2% to 158.15 per dollar in Asian trading after a 20-year Japanese government bond auction drew bids of 5.84 times the amount sold, well above the 4.01 times at the previous auction, and the yield fell 6 basis points to 3.71%. A State Street strategist said the record demand suggests sidelined cash is returning and that JGBs are becoming a relative haven from political and fiscal volatility in Europe, particularly France. Anti-government protests in France prompted curfews in several cities, while Italy said it would send 500 troops after two days of unrest, and the euro rallied 0.2% to $1.1234. Elsewhere, bitcoin slipped 0.3% to $81,674.25 and ether edged down 0.2% to $2,393.21.
- Unemployment rate dips to 4 . 7 % - but vacancies hit five - year low
Vacancies fell by 21,000 to 691,000 in the three months to September, the biggest drop since the three months to March and the lowest since July to September 2014 outside the pandemic, while unemployment dipped in the three months to August. Payroll numbers were down 66,000 over the year to September. The ONS said the fall was mainly among smaller firms struggling with higher labour costs, following rises in employer national insurance, the minimum wage and workers' rights. A CBI survey found labour costs and regulations were making it harder to create jobs, and firms urged the Chancellor not to add to their burden in the October 28 Budget. ICAEW's Suren Thiru said the labour market is 'running on idle' and unemployment could climb above 5 per cent, while Shadow Chancellor Andrew Griffith blamed Labour's 'Jobs Tax' and red tape.
- CNBC Daily Open: Tech rebounds in the U.S., but Asia isn’t buying it yet
U.S. tech stocks rebounded as the Nasdaq Composite rose more than 1% on Monday, with Nvidia up 1.4% and Tesla up 3.8%. In Asia, however, tech shares fell on Tuesday, with South Korea's Kospi down over 4% and Japan's Nikkei 225 down 1.6%. Nvidia also unveiled plans to back four German AI startups as part of its nearly $10 billion European investment commitment. Jenny Lee of Granite Asia said Asian companies are reaching IPOs much sooner, often at four to five years old, while Jio Platforms' Indian IPO saw its anchor investor quota oversubscribed more than 30 times, aiming to raise up to 302 billion rupees ($3.2 billion). In Singapore, several agricultural stocks fell after Senior Minister K Shanmugam warned that companies would not escape responsibility for possible roles in the haze, noting seven firms had been questioned by the Singapore Exchange.
- NiSource (NI) Stock Looks Overvalued Against Its Dividend Outlook
NiSource has nearly doubled shareholders' money over the past five years, delivering a 97.6% total return, which raises the question of whether dividends can justify the current share price. The article highlights a new 20-year energy agreement with Microsoft, including customer-funded grid upgrades and long-term electric service for data centers, which may affect future capital needs and cash-flow visibility. Using a Dividend Discount Model with inputs of about $1.35 dividend per share, roughly 9.07% return on equity, a payout ratio slightly above 61%, and implied dividend growth of about 3.5%, the estimated intrinsic value sits meaningfully below the current share price of $41.95. The model still does not bridge that gap, suggesting income investors are paying a premium for a relatively steady payout with modest assumed growth.
Get the briefing on Telegram or Zalo
Join the Upside Telegram channel or Zalo group for the Vietnam stocks and gold briefing at 8:00 and 19:00 (Vietnam time) on trading days, plus a weekly wrap on Saturday morning.