AppLovin: Gaming Just Closed The Gap E-Commerce Was Meant To

The Alpha Analyst 5.24K Followers Follow Summary AppLovin is upgraded to a cautious Buy after a 26% correction and improved Q3 growth guidance. Q3 revenue guidance implies a 7-8% sequential rebound, driven by core gaming model improvements, not unproven segments. APP trades at ~16x EV/EBITDA, near two-year lows and ~30% below its five-year average, offering compelling value. Key risks include lumpy revenue trends and rising R&D costs; Q3 results are pivotal for validating the rebound thesis. ismagilov/iStock via Getty Images My calls on AppLovin ( APP ) since February this year have been initially a wait for better valuations while margins seemed to have peaked, and then a Sell in July, after shares rebounded from This article was written by The Alpha Analyst 5.24K Followers Follow I am a stock analyst with over 20 years of experience in quantitative research, financial modeling, and risk management. My focus is on equity valuation, market trends, and portfolio optimization to uncover high-growth investment opportunities. As a former Vice President at Barclays, I led teams in model validation, stress testing, and regulatory finance, developing a deep expertise in both fundamental and technical analysis. Alongside my research partner (also my wife), I co-author investment research, combining our complementary strengths to deliver high-quality, data-driven insights. Our approach blends rigorous risk management with a long-term perspective on value creation. We have a particular interest in macroeconomic trends, corporate earnings, and financial statement analysis, aiming to provide actionable ideas for investors seeking to outperform the market. Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.