AppLovin CorporationAPP

Communication Services
Neutral

ASignal's systematic analysis rates APP as Neutral. AppLovin Corporation has a market cap of $152.09B, a P/E of 39.06, a 64.3% net margin, and 59.0% year-over-year revenue growth.

Reflects the latest available analysis · analyzed Jul 16, 2026

The case on APP

Bull vs bear, surfaced by ASignal's framework agents from public market data. The precise verdict: ASignal Rank, confidence, and price targets - is in the app.

Bull case
  • Exceptional return on equity (266.44%) indicating superior capital efficiency
  • High revenue growth (59.0% YoY) and earnings growth (113.1% YoY)
  • Strong gross (88.37%) and operating margins (78.15%)
  • Positive free cash flow ($3.18B) and solid operating cash flow ($4.44B)
  • Low current valuation relative to forward P/E (20.89x) vs historical P/E (39.06x)
VS
Bear case
  • MACD below signal line with negative histogram, indicating bearish momentum
  • Price below both SMA20 and SMA50, signaling short- to medium-term downtrend
  • High debt-to-equity ratio (1.63x), above the concerning threshold of 1.0
  • Elevated valuation multiples: P/B (64.42x), P/S (24.67x), EV/EBITDA (31.44x)
  • No Reddit mentions, suggesting lack of retail investor sentiment or engagement

Key facts

Sector
Communication Services
Market cap
$152.09B
P/E ratio
39.06
Gross margin
88.4%
Net margin
64.3%
Rev growth YoY
59.0%
Price (Jul 16, 2026)
$452.73

Peers

Clustered with APP by analysis-profile similarity.

Subscriber-only

See the full verdict on APP

ASignal Rank (1-4), confidence score, Buffett / Ackman / Dalio grades, price targets, and the full reasoning behind the call.

How ASignal analyzes APP

Most investors never get a second opinion, let alone several. ASignal runs APP past a panel of specialized investor-framework agents, each calibrated on a distinct school of investing: Warren Buffett's value discipline, Bill Ackman's activist lens, and Ray Dalio's macro view. They don't just score in isolation, they argue: a dedicated Challenger agent pushes back on every conclusion until the panel settles on a reasoned consensus, weighing fundamentals, macro conditions, market sentiment, and price action together. The kind of cross-examined read that takes a research desk hours, ASignal delivers in under two minutes, refreshed every cycle.

The signal direction and the bull and bear case above are free. The precise read, ASignal Rank, framework grades, price targets, and full reasoning, stays with subscribers.

AppLovin Corporation (APP) Stock Analysis - ASignal rates it Neutral