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AppLovin’s year-to-date profits have doubled compared to the same period last year.
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Q4 looks like it will be impressive as well.
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Stock valuation is debatable.
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10 Actions We Like More Than AppLovin ›
AppLovin (NASDAQ: APP) was one of the top market gainers in 2025, with technology stock up 120% year to date as of this writing. The move comes as the ad tech company has not only seen impressive growth, but also rising profits.
Why should investors care?
Because the same set of facts can lead to two different conclusions for investors: the business looks significantly stronger than a year ago, but the price investors are asking now is much less generous.
AppLovin is a classic example of great business with unattractive stock.
AppLovin’s growth has been hard to ignore.
The company, which provides software and AI (artificial intelligence) solutions for businesses to reach, monetize and grow their audiences have seen thatThird-quarter revenue rose 68% year-over-year to more than $1.4 billion. And adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) rose 79% year over year to $1.12 billion.
The results are even more impressive when we look at AppLovin’s year-to-date quarterly results. Revenue in the nine months to September 30 was about $3.8 billion, up 72% year over year. And the company earned more than $2.2 billion in net income (up 128% year-over-year) from these sales. Adjusted EBITDA for the period increased 90% year-over-year to $3.1 billion.
That said, one detail that investors should not ignore is the direction of growth. The 68% third-quarter revenue growth was still fast, but it was less than the 77% year-over-year growth AppLovin posted in the second quarter.
Still, the broader takeaway is clear: In 2025, AppLovin looked less like a niche ad tech name and more like a platform at scale with unusual profitability.
When a stock doubles, the question is rarely whether the company is doing well. In this case, AppLovin is firing on all cylinders. The hard part is if the current price leaves room for error.
With a price-to-sales ratio of around 40 and a price-to-earnings ratio of 50 at the time of writing, investors clearly expect strong growth to persist.
While there’s no indication that growth will slow substantially anytime soon, it’s worth noting that management expects a further deceleration in Q4. AppLovin guided for revenue of $1.57 billion to $1.60 billion and adjusted EBITDA of $1.29 billion to $1.32 billion. That guidance implies revenue growth of 57% to 60% year-over-year — an impressive but marked deceleration from the 68% growth in Q3.