Recommendation: Buy
| Entry Date | Symbol | Recommendation | Entry Price (USD) | Target 1 (USD) | Target 2 (USD) | Holding Duration | Position Status | Return(%)* |
|---|---|---|---|---|---|---|---|---|
| 15 Jun, 26 | APP | Buy | USD 496.77 | USD 523.0 | USD 550.0 | 10 days | Closed |
9.41%
|
*Return(%) represent the percentage change between the entry price and exit price of the recommendation.
Data Powered by EOD Historical Data (“EODHD”).
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.
Net Income Expansion: Q1FY26 Net Income of USD 1,205.6 Mn vs Q1FY25 Net Income of USD 576.4 Mn
Revenue Growth: Q1FY26 Revenue of USD 1,842.4 Mn vs Q1FY25 Revenue of USD 1,159.0 Mn
Cost of Revenue Growth: Q1FY26 Cost of Revenue of USD 203.6 Mn vs Q1FY25 USD 151.7 Mn
Research and Development Expense Increase: Q1FY26 Research and Development Expense of USD 94.1 Mn vs Q1FY25 USD 56.4 Mn
AppLovin’s growth outlook remains exposed to changes in digital advertising demand, increasing competition from large advertising platforms, dependence on continuous AI model improvements, evolving privacy regulations, and potential challenges in scaling new consumer advertising and self-service initiatives
| Entry Price | Support* | Target 1** | Target 2** |
|---|---|---|---|
| 496.77 | 450.0 | 523.0 | 550.0 |
Data Source: REFINITIV, Analysis: StockNextt
*Support can be considered as an indicative stop-loss, and if prices move below that level on closing basis individuals may evaluate exiting the position depending on their risk appetite, previous holdings, and other factors considered. The support and resistance levels may need to be re-evaluated within 4-6 weeks’ time frame depending on the stock price movements from the date of recommendation on the stock.
**Target prices may vary by ±0.5% depending on market volatility.
AI-Powered Advertising Platform Expansion Driving Exceptional Growth: AppLovin delivered a strong Q1FY26 performance, supported by continued advancements in its AI-driven Axon advertising platform and growing adoption across gaming and consumer advertising markets. Revenue increased 59% YoY to USD 1.84 billion, while management highlighted accelerating advertiser demand, stronger platform engagement, and sustained momentum across both core and emerging verticals.
Consumer Advertising Scaling Through Product Innovation: The consumer advertising segment continued to scale rapidly, benefiting from significant model enhancements that improved advertiser returns and campaign efficiency. Management noted that advertiser spending accelerated throughout the quarter, with March spending approximately 25% higher than January and April achieving record spending levels, exceeding prior peak seasonal periods.
Gaming Ecosystem Remains a Key Growth Engine: Gaming continued to serve as the foundation of AppLovin’s business, supported by increasing adoption of hybrid monetization strategies and AI-enabled game development. Management highlighted growing enthusiasm among major gaming publishers, stronger content creation activity, and continued market share gains as developers leverage AppLovin’s platform for user acquisition and monetization.
Strong Profitability and Cash Flow Generation: Operational leverage remained a major strength during Q1FY26. Adjusted EBITDA increased 66% YoY to USD 1.56 billion, while adjusted EBITDA margin expanded to 85%. Free cash flow reached approximately USD 1.29 billion, reflecting the scalability of the platform, efficient cost structure, and robust monetization capabilities across the advertising ecosystem.
Platform Opening Creates Long-Term Growth Opportunity: The upcoming public launch of the Axon platform represents a significant strategic milestone. By enabling self-service access, AI-generated ad creative tools, and agent-compatible campaign management, AppLovin aims to broaden customer acquisition, improve advertiser onboarding, and unlock substantial growth opportunities across millions of businesses globally.
Considering recent key business, financial updates, current trading levels, and key business risks, a ‘Buy’ recommendation has been given to AppLovin Corporation (NASDAQ: APP) at the closing market price of USD 496.77, as on 12 June,2026.
Data Powered by EOD Historical Data (“EODHD”).
Sector: Communication Services Industry: Advertising Agencies
| Company | Change (USD) | Price (USD) | Trailing PE (x) | Forward PE (x) | Price Sales TTM (x) | Price to Book Value (x) | Enterprise Value to Revenue (x) | Enterprise Value to EBITDA (x) |
|---|---|---|---|---|---|---|---|---|
| APP Applovin Corp |
8.84 2.08% | 433.44 | 49.00 | 31.75 | 30.27 | 77.57 | 30.41 | 38.27 |
| PGPEF Publicis Groupe S.A |
- -% | 106.84 | 15.93 | 11.57 | 1.55 | 2.24 | 1.76 | 9.39 |
| PUBGY Publicis Groupe SA |
-0.47 1.87% | 24.66 | 16.35 | 11.74 | 1.57 | 2.27 | 1.76 | 9.39 |
| OMC Omnicom Group Inc |
-2.21 2.68% | 80.16 | 12.68 | 11.89 | 1.17 | 5.11 | 1.58 | 9.50 |
| WPP WPP PLC ADR |
-0.865 4.51% | 18.34 | 15.75 | 7.39 | 0.69 | 2.20 | 1.18 | 9.23 |
Data Powered by EOD Historical Data (“EODHD”).
Markets are trading in a highly volatile zone currently due to certain macro-economic issues and prevailing geopolitical tensions. Therefore, it is prudent to follow a cautious approach while investing.
Related Risks: This report may be looked at from high-risk perspective and recommendations are provided are for a short duration. Recommendations provided in this report are solely based on technical parameters, and the fundamental performance of the stocks has not been considered in the decision-making process. Other factors which could impact the stock prices include market risks, regulatory risks, interest rates risks, currency risks, social and political instability risks etc.
Note 1: Past performance is not a reliable indicator of future performance.
Note 2: The reference date for all price data, currency, technical indicators, support, and resistance levels as on June 15, 2026. The reference data in this report has been partly sourced from REFINITIV.
Note 3: Investment decisions should be made depending on an individual's appetite for upside potential, risks, holding duration, and any previous holdings. An 'Exit' from the stock can be considered if the Target Price mentioned has been achieved and is subject to the factors discussed above.
Note 4: StockNextt reports are prepared based on the stock prices captured either from REFINITIV or Trading View. Typically, REFINITIV or Trading View may reflect stock prices with a delay which could be a lag of 15-20 minutes. There can be no assurance that future results or events will be consistent with the information provided in the report. The information is subject to change without any prior notice.
Support: A level at which the stock prices tend to find support if they are falling, and a downtrend may take a pause backed by demand or buying interest. Support 1 refers to the nearby support level for the stock and if the price breaches the level, then Support 2 may act as the crucial support level for the stock.
Target: A level at which the stock prices tend to find resistance when they are rising, and an uptrend may take a pause due to profit booking or selling interest. Target 1 refers to the nearby resistance level for the stock and if the price surpasses the level, then Target 2 may act as the crucial resistance level for the stock.
Stop-loss: It is a level to protect further losses in case of unfavourable movement in the stock prices.
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