AppLovin Corporation (APP): A Bull Case Theory

1 month ago 11

Ricardo Pillai

Thu, December 4, 2025 astatine 11:43 AM CST 3 min read

We came crossed a bullish thesis connected AppLovin Corporation connected Accrued Interest’s Substack by Simeon McMillan. In this article, we volition summarize the bulls’ thesis connected APP. AppLovin Corporation's stock was trading astatine $623.59 arsenic of December 1st. APP’s trailing and guardant P/E were 73.54 and 43.48 respectively according to Yahoo Finance.

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AppLovin has rapidly emerged arsenic a large unit successful integer advertising, competing straight with Meta, Snap, and TikTok for advertiser budgets. The institution reported implicit $11 cardinal successful gross advertisement walk arsenic of Q1, a standard comparable to the combined revenues of Pinterest, Snap, and Twitter. Its thin operating exemplary is simply a cardinal differentiator, AppLovin has achieved beardown gross maturation with minimal headcount, allowing it to prolong industry-leading operating margins portion avoiding the overhiring and layoffs seen astatine different tech giants.

CFO Matt Stumpf’s disciplined attack supports these precocious margins, portion CEO Adam Foroughi’s superior allocation strategy—deploying each escaped currency travel toward stock buybacks—signals assurance successful intrinsic worth and a deficiency of near-term M&A ambitions. Despite presently serving a constricted stock of Northbeam’s surveyed lawsuit base, AppLovin already commands a 3–5% fund share, ranking conscionable down Meta and Google and surpassing TikTok, Pinterest, and Snap. This underscores important country for marketplace enlargement arsenic it scales crossed much clients and regions.

Moreover, the institution identifies a immense untapped accidental successful in-game advertising, estimating that enabling ads crossed gaming publishers could unlock an further $100 cardinal successful full addressable market. With EBITDA margins of 80–85% and conversion of implicit 50% of EBITDA to escaped currency flow, AppLovin is positioned arsenic a durable currency generator. Future selling efforts, including imaginable large-scale campaigns to summation marque visibility, could further accelerate lawsuit growth. Though the banal has rallied, its structural strengths and maturation imaginable marque it a compelling semipermanent investment.

Previously we covered a bullish thesis connected AppLovin Corporation (APP) by Jimmy Investor successful March 2025, which highlighted its AI-powered advertisement monetization level and beardown fiscal performance. The company’s banal has appreciated astir by 141.92% since our sum arsenic the software-driven maturation thesis played out. Simeon McMillan shares a akin presumption but emphasizes AppLovin’s thin operating exemplary and superior discipline.