AppLovin Corporation (APP) has experienced a significant decline of 22.5% in its stock value over the past month, compared to a 6% decline in the advertising industry. This drop raises questions for long-term investors regarding the potential of this AI-driven advertising platform as an attractive entry point.
In the third quarter of 2025, AppLovin reported a 68% year-over-year increase in revenues and a 92% rise in net income. The company’s adjusted EBITDA jumped 79% year over year, indicating improved operational efficiency. For full-year 2024, revenues are expected to grow by 43%, with adjusted EBITDA surging 81%, demonstrating the company’s ability to capitalize on market opportunities while maintaining efficiency.
Analyst projections for the fourth quarter of 2025 suggest earnings of $2.89 per share, reflecting a 67% increase from the prior year, while revenues are projected to reach $1.6 billion, marking a 17% growth year over year. Looking ahead, full-year 2025 earnings are expected to increase by 106%, with revenues anticipated to rise 18% in 2025 and 38% in 2026, highlighting continued confidence in AppLovin’s growth potential.
