AppLovin is hated despite exceptional growth and profitability. In Q2 revenue grew 53% year over year with an 88.3% gross margin and a 77.7% operating margin. It also produced $869 million of free cash flow, a 100% FCF margin, and put $551 million of it into buybacks. x.com 

AppLovin is a monster growth company trading at just 15 times forward earnings, while management expects it to grow much faster than the market expects. Per @stock_analysisx, its earnings per share went from $0.09 to $13 in four years, yet the stock is down 60% from its high. x.com 

AppLovin's ad yield engine has run out of gas, setting up the same structural decay that hit The Trade Desk as ad spend consolidates into walled gardens. Conversion rates stalling around 1.4%, delayed AI rollouts and mounting litigation point to a fundamental tailspin that Piper Sandler's cautious call understates. Being down 60% this year is not a bottom; buying here is catching a falling knife on a broken narrative. x.com 

AppLovin looks cheap at about 22x forward earnings, down 57% from its high, while growth and cash flow stay strong. Revenue grew 53% to $1.92B with an 84% EBITDA margin and $863M of quarterly free cash flow. The SEC closed its inquiry with no action, e-commerce advertiser spend hit a record, and model improvements after Q2 are driving a strong Q3 start. It bought back $551M of stock last quarter, with $1.8B still authorized. x.com 

AppLovin looks like an attractive ad-tech opportunity around $280 because its advertising platform has opened to all businesses, offering access to over 1 billion daily users, and management expects Q3 revenue above $2B. Shares are down nearly 62% from $733 despite Q2 revenue growth of 53% year over year. x.com 

AppLovin is $200 cheaper and insiders still don't want to buy it. x.com 

AppLovin's growth, liquidity, free cash flow and profitability make it the clear winner among beaten-down stocks with attractive fundamentals. Research Desk's chart shows EPS generally beating estimates, though the latest revenue missed. x.com 

AppLovin may be one of the most mispriced growth stocks, trading at about 15x expected 2027 earnings despite triple-digit EPS growth. In 2025 revenue rose 70% to $5.5B, EPS 116% and free cash flow 91% to $4.0B, with profits growing faster than revenue. Q2 2026 revenue rose 53% to $1.92B with an EBITDA margin of about 84% and $863M of free cash flow. x.com 

AppLovin is no longer on the path of accelerating free cash flow that underpinned the bullish case, so it is time to move on. The weak quarter itself was a timing issue, but the outlook no longer fits a framework of owning businesses whose free cash flow is accelerating, and the stock has reached its predefined risk limit. x.com  x.com 

AppLovin's high growth may outlast market expectations, helping explain its cheap valuation. In SergeyCYW's forward P/E versus expected revenue growth comparison, it is in a league of its own, especially when earnings quality is considered. x.com  x.com  x.com