APP
Communication Services · Advertising Agencies
Performance
APP (APP) Stock Analysis 2026
Rule-based · Updated daily · Not financial advice
APP (APP) operates in the Advertising Agencies space within the Communication Services sector. With a market cap of $167.4B, it qualifies as a mid-cap company. The company is growing revenue strongly while maintaining healthy profitability — a combination that investors typically reward with a premium valuation.
- Forward P/E (22.7×) is lower than trailing P/E (43.3×) — analysts expect earnings to improve
- Revenue grew 59% year-over-year — exceptional top-line expansion
- Earnings grew 113% YoY — bottom-line is expanding fast
- Exceptional profit margin of 64.3% — the business retains a large share of each dollar earned
- ROE of 266.4% shows management efficiently converts equity into profit
- Current ratio of 3.2× — ample short-term liquidity
- High P/E of 43.3× implies high expectations already priced in — leaves little room for disappointment
- High debt-to-equity of 162.89× increases financial risk, especially with elevated interest rates
- No dividend history — total return depends entirely on price appreciation
- High beta of 2.46 — this stock is significantly more volatile than the broader market
Verdict
Buy / Hold
More positives than negatives. Fundamentals support holding while monitoring key risks.
AI Insight
Powered by ClaudeAI-generated analysis for informational purposes only. Not financial advice.
Related Articles
Revenue & Results
Dividends
This stock does not pay dividends.
If You Had Invested…
Hypothetical return based on historical prices
* Dividend reinvestment calculated at ex-date price. For informational purposes only.
Earnings
Next Earnings
Aug 6, 2026
51
days
EPS (TTM)
$11.51
P/E (TTM)
43.3
Fwd P/E
22.7
Earnings History
SEC EDGAR · official filings
SEC Filings
Official EDGAR documents
Key Statistics
Valuation
Trading
Dividends
Profitability
Balance Sheet
Fair Value Estimates
Current price: $498.25
Graham Number
√(22.5 × EPS × Book Value)
$42.66
Benjamin Graham's intrinsic value formula. Assumes a fair stock trades at no more than 22.5× the product of EPS and book value per share.
Bazin Ceiling Price
Avg. Annual DPS (5Y) ÷ 6%
N/A
Décio Bazin's dividend-based ceiling. The max price you should pay so that dividends alone deliver at least 6% annual yield on your cost basis.
These are simplified estimates. Not financial advice.
Buy & Hold Checklist
Quality criteria for long-term holding
6/10
75% score
Pays dividends
No dividend history found
Dividend consistency (5Y+)
Uninterrupted dividend payments for at least 5 years
ROE above 10%
266.4%Return on equity — measures how efficiently capital is used
Positive profit margin
64.3%Net profit margin must be positive — company earns more than it spends
Revenue growth (annual)
+59.0%Annual revenue must be growing compared to the prior year
Earnings growth (annual)
+113.1%Annual earnings must be growing compared to the prior year
Debt/Equity below 2×
162.89×Low financial leverage reduces risk of distress
Current ratio above 1
3.24×Short-term assets must cover short-term liabilities
Daily liquidity above $5M
$2.3B/dayHigh trading volume ensures easy entry and exit
Dividend yield above 0%
Stock must distribute income to shareholders
Related Assets
Communication Services
About APP
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 to automate, optimize, and manage marketing efforts; MAX, an in-app bidding technology that optimizes the value of a publisher's advertising inventory by running a real-time competitive auction; Adjust, a measurement and analytics marketing platform; and Wurl, a connected TV platform, which distributes streaming video for content companies, provides advertising and publishing solutions. It serves individuals, small and independent businesses, enterprises, advertisers and advertising networks, mobile app publishers, and indie studio developers. The company was incorporated in 2011 and is headquartered in Palo Alto, California.
Sector
Communication Services
Industry
Advertising Agencies
Location
Palo Alto, United States
Employees
876