AppLovin: I Am Buying The Q2 Stock Plunge

AppLovin delivered 53% YoY Q2 revenue growth with 75%+ margins, underscoring a rare blend of scale, profitability, and growth. Q2's sequential growth slowdown reflects timing of machine-learning model improvements, not structural weakness; volatility is expected, but the long-term thesis remains intact. APP's expansion beyond gaming—into consumer brands, non-gaming apps, web, and CTV—presents a TAM multiples larger than its current revenue base. Regulatory risks persist, but APP's core economics—nearly 90% incremental EBITDA margins and robust cash generation—remain exceptional and largely underappreciated.

I covered AppLovin ( APP ) back in 2022 with a "Buy" rating. Since then, the thesis of betting on the mobile ad tech market has unfolded nicely. Recently, AppLovin reported Q2 earnings (August 5), and the