APP Should I Buy
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AppLovin Corp (APP) is not a strong buy at the moment for a beginner investor with a long-term strategy. Despite strong financial performance in Q4 2025, the stock's significant price drop, bearish technical indicators, and competitive risks in the ad tech space suggest caution. The lack of strong trading signals and mixed sentiment from analysts further support a 'hold' recommendation.
The technical indicators for APP are bearish. The MACD histogram is negative and expanding downward (-4.749), RSI is at 28.328, which is neutral but nearing oversold territory, and moving averages are bearish (SMA_200 > SMA_20 > SMA_5). The stock is trading below key support levels, with S1 at 374.991 and the current price at 366.91. This indicates a weak price trend.
Strong Q4 2025 financial performance with revenue up 20.77% YoY, net income up 84.12% YoY, and EPS up 87.28% YoY.
Analysts maintain a generally positive long-term outlook, with several buy ratings and price targets above the current price.
Continued growth in e-commerce adoption and Axon 2.0 performance.
Significant stock price drop (-19.68% in regular trading) following Q4 earnings due to unmet investor expectations and concerns about AI competition.
Bearish technical indicators and weak price momentum.
Rising competitive risks from Meta's gaming ads and Google's Project Genie, which could pressure budgets and sector multiples.
No strong proprietary trading signals (AI Stock Picker or SwingMax) to support a buy decision.
In Q4 2025, AppLovin reported strong financial growth: revenue increased by 20.77% YoY to $1.658 billion, net income rose by 84.12% YoY to $1.102 billion, EPS grew by 87.28% YoY to 3.24, and gross margin improved to 88.93%, up 16.01% YoY. However, the company anticipates slower growth in Q1 2026.
Analysts maintain a generally positive outlook with multiple buy ratings and price targets ranging from $465 to $835. However, some analysts have lowered price targets due to competitive risks and softer industry sentiment. Recent ratings highlight both the company's strong execution and potential headwinds from AI competition and market dynamics.
