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    AppLovin (APP) Nears Third Quarter Results, Is The Stock Still Undervalued?

    Simply Wall St·11/04/2026 09:24:34
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    AppLovin (APP) heads into its third quarter earnings report today with a sharply weaker share price, legal questions, and AI-driven competition, turning this update into a key moment for investors.

    Over the past year, AppLovin has swung from one of the market’s stronger long-term performers to one of 2026’s sharpest fallers, with the share price down 41.24% over 90 days and 60.29% year to date, while the 3-year total shareholder return remains very large at about 7x. Recent headlines around AI-driven competition, legal risk and softer sentiment into today’s results have weighed heavily. As a result, the latest 7.28% 1-day share price rebound to $245.51 looks more like traders repositioning ahead of the earnings release than a clear shift in longer term momentum.

    Spot opportunities around the same theme by scanning AI and ad-tech peers with resilient balance sheets in the curated list of solid balance sheet and fundamentals (23 results).

    With AppLovin stock down sharply yet trading at a reported 45% discount to the average analyst target and an even wider gap to some intrinsic value estimates, where does fair value realistically sit after this latest rebound?

    Most Popular Narrative: 52% Undervalued

    Against AppLovin’s last close at $245.51, the most followed narrative on Simply Wall St pegs fair value at $507, implying a very large gap that recent price weakness has not closed.

    AppLovin is one of the best operators in the market it already dominates, it just had its largest legal overhang removed, its most recent stumble was a release-schedule problem rather than a demand problem, and it is entering a market several times larger than the one it currently leads. The stock is at 25.3 times trailing earnings.

    See why 37 investors see AppLovin as 52% undervalued.

    Result: Fair Value of $507 (UNDERVALUED)

    Still, AppLovin’s story can change quickly if regulators revisit data practices or if AI driven rivals erode its high reported margins and pricing power.

    Find out about the key risks to this AppLovin narrative.

    Next Steps

    Sentiment around AppLovin may look divided right now, so consider reviewing the data for yourself and focus on the potential rewards in the 4 key rewards.

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