AppLovin Corporation
AppLovin Corporation provides end-to-end artificial intelligence-powered advertising solutions for businesses in the United States and internationally. It operates through two segments, Advertising and Apps. The company offers Axon Ads Manager, a suite of marketing solutions that enables developers …
What to know about APP
AppLovin Corporation is a large Communication Services company with a solid overall financial profile. It scores well on profitability and growth, but risk is worth keeping an eye on.
Should you consider APP?
Based on 31 financial metrics and sector comparison. Not financial advice.
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AppLovin Corporation is a large-cap Communication Services company with a solid overall financial profile — it ranks in the top quarter of its Communication Services peers (4 of 24).
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The business is both profitable and financially healthy — it keeps a good portion of what it earns and carries its debt comfortably.
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The stock trades at a premium — investors are paying more per dollar of earnings than most S&P 500 companies. That's fine if strong growth justifies it, but leaves little room for disappointment.
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Growth is a clear strength — revenue and earnings are expanding faster than most peers, signalling strong demand for the company's products or services.
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This stock pays no dividend — your return depends entirely on the share price rising over time.
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The stock is more volatile than most S&P 500 names — it can swing sharply in both directions. This suits investors comfortable with bigger short-term moves.
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Analyst sentiment is broadly positive and short interest is low — professionals who cover this stock are mostly optimistic about its near-term prospects.
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Overall, this is a well-rounded stock with multiple genuine strengths and few obvious weaknesses. It may suit investors looking for a reliable holding in the Communication Services space.
At a glance
How it scores
We look at 31 different financial metrics and group them into categories. Here's how APP compares to the other S&P 500 stocks.
Dive deeper — all 31 metrics 9 categories · valuation, growth, health, dividends & more Show all Hide
Valuation
Is the stock cheap or expensive relative to its earnings, sales, and assets? Lower multiples often mean better value.
| Metric | Value | vs S&P 500 |
|---|---|---|
| P/E Ratio (Trailing) | 40.88 | Below avg |
| Forward P/E | 21.42 | Average |
| PEG Ratio | 1.42 | Above avg |
| Price to Sales | 25.60 | Below avg |
| Price to Book | 66.83 | Below avg |
| EV/EBITDA | 35.75 | Below avg |
| Earnings Yield | 2.45% | Below avg |
Profitability
How efficiently does the company turn revenue into profit? Higher margins mean more money kept from each dollar earned.
| Metric | Value | vs S&P 500 |
|---|---|---|
| Gross Margin | 88.37% | Top 25% |
| Operating Margin | 78.15% | Top 25% |
| Net Profit Margin | 64.29% | Top 25% |
| Return on Equity | 266.44% | Top 25% |
| Return on Invested Capital | 44.24% | Top 25% |
Growth
How fast is the business expanding? Strong growth in revenue and earnings signals increasing market demand.
| Metric | Value | vs S&P 500 |
|---|---|---|
| Revenue Growth (YoY) | 59.00% | Top 25% |
| Revenue Growth (3Y CAGR) | 24.84% | Top 25% |
| EPS Growth (YoY) | 113.10% | Top 25% |
| Free Cash Flow Growth | 90.15% | Top 25% |
Health
Can the company cover its debts and obligations? A healthy balance sheet reduces the risk of financial trouble.
| Metric | Value | vs S&P 500 |
|---|---|---|
| Current Ratio | 3.24 | Top 25% |
| Debt to Equity | 1.63 | Below avg |
| Interest Coverage | 20.09 | Top 25% |
| Altman Z-Score | 21.97 | Top 25% |
Dividends
Does the company pay shareholders, and is that payment growing and sustainable?
| Metric | Value | vs S&P 500 |
|---|---|---|
| Dividend Yield | — | N/A |
| Payout Ratio | — | N/A |
| Dividend Growth (5Y) | — | N/A |
Cash Flow
Is real cash flowing into the business — not just accounting profits? Strong cash flow funds growth and dividends.
| Metric | Value | vs S&P 500 |
|---|---|---|
| Free Cash Flow Yield | 2.79% | Average |
| OCF to Sales | 71.88% | Top 25% |
Risk
How volatile is the stock compared to the broader market? Lower beta and volatility mean a smoother ride.
| Metric | Value | vs S&P 500 |
|---|---|---|
| Beta (1-Year) | 2.46 | Below avg |
| Volatility (30-Day) | 74.49% | Below avg |
Sentiment
What do analysts and short-sellers think? High analyst ratings and low short interest signal broad confidence.
| Metric | Value | vs S&P 500 |
|---|---|---|
| Short % of Float | 4.39% | Average |
| Avg. Analyst Rating | 1.47 | Top 25% |
| Target Upside % | 37.98% | Top 25% |
Size
How large is the company by market value? Size affects stability, growth potential, and index inclusion.
| Metric | Value | vs S&P 500 |
|---|---|---|
| Market Capitalization | 157.79B | Top 25% |
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