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    AppLovin (APP) Draws Fresh Wall Street Support, Is The Stock Still A Bargain?

    Simply Wall St·07/09/2026 09:50:17
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    Positive commentary from Wall Street firms and a credit upgrade have pushed AppLovin (APP) back into focus for investors, as recent analyst reports highlight its AI advertising platform, revenue profile, and e-commerce expansion.

    See our latest analysis for AppLovin.

    Despite a recent pullback, with the 7 day share price return down 7.51% and the 30 day share price return down 7.36%, AppLovin still shows strong momentum over a longer window. This is reflected in a 90 day share price return of 37.73% and a 1 year total shareholder return of 48.04%.

    If AppLovin’s AI focus has your attention, it can be helpful to see what else is moving in the space through a curated stock list like 63 profitable AI stocks that aren't just burning cash.

    After a sharp run over the past year and a pullback more recently, AppLovin now trades well below both analyst targets and some intrinsic value estimates. Where does a reasonable fair value range actually sit for this stock?

    Most Popular Narrative: 16.5% Undervalued

    According to the most followed narrative on AppLovin, a fair value of $625 per share sits above the last close at $522.18. This frames the current discount and the debate around how much of its AI advertising potential is already in the price.

    The fundamentals are exceptional. Q1 2026 revenue hit US$1.84 billion, up 59% year-over-year, with net income of US$1.21 billion, a 65% net margin. Adjusted EBITDA margins are guided at 84-85%, among the highest in software.

    Read the complete narrative.

    Want to see what is behind that $625 fair value for AppLovin? The narrative focuses on compounded earnings, ultra high margins, and a rich future profit multiple. Curious which growth and profitability assumptions justify that price tag and how sensitive the outcome is to them? The full narrative lays out the numbers that drive this valuation call.

    Result: Fair Value of $625 (UNDERVALUED)

    Have a read of the narrative in full and understand what's behind the forecasts.

    However, this AppLovin narrative still hinges on AXON’s broader e-commerce adoption and the company’s relatively high leverage, both of which could challenge the bullish case.

    Find out about the key risks to this AppLovin narrative.

    Next Steps

    If the mixed sentiment around AppLovin leaves you undecided, take a closer look at both the caution and optimism, then weigh the 4 key rewards and 1 important warning sign.

    Looking for more investment ideas beyond AppLovin?

    If AppLovin has sharpened your interest in tech driven opportunities, do not stop here. Broaden your watchlist with a few targeted stock ideas worth a closer look.

    This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.