"AppLovin' It: Tech Company Makes Money, Wall Street Analysts Need Smelling Salts"

AppLovin Corporation, led by its robust Q3 results, has demonstrated significant growth, with a 68% year-over-year revenue increase and impressive 82% EBITDA margins, as reported by James Foord, Investing Group Leader of The Pragmatic Investor. The company's Axon engine and newly introduced self-service platform are key drivers of this growth, enabling the expansion of advertiser spend beyond the gaming sector into e-commerce, with management anticipating sustained high double-digit growth and stable low-80% EBITDA margins. As of 2025, AppLovin's stock has essentially doubled, despite being subject to short reports and investor skepticism, with a current valuation at a 2027 P/E of 30, although the PEG ratio is below 1, supporting further upside potential. The company's large total addressable market (TAM) and continued execution are expected to drive growth, with Foord maintaining a beneficial long position in AppLovin shares, citing the company's potential for further expansion. With a focus on building robust and diversified portfolios, Foord's analysis highlights AppLovin's potential for continued growth, despite platform and macro risks, as discussed in more depth with members of The Pragmatic Investor community.