AppLovin reported $1.92 billion in Q2 2026 revenue with an 84% adjusted EBITDA margin, showcasing strong growth and profitability. However, two disciplined investors analyzed the company's business model and decided not to invest, expressing concerns about the sustainability of its competitive advantage, which relies heavily on its recommendation algorithm. They highlighted risks such as potential competition from better algorithms and market saturation, noting that unlike giants like Google and Meta, AppLovin lacks strong network effects. Despite aggressive share buybacks and strong guidance, the investors concluded that the algorithmic moat is vulnerable, making the stock a pass for their portfolios.
Magnite and Trade Desk stocks surged 6% and 5% respectively due to their agentic AI advertising products, while AppLovin's stock remained nearly unchanged. This divergence highlights a growing split within programmatic advertising, where investors fa...
Sandisk and Kioxia announced plans to invest over $31 billion in their memory manufacturing facilities in Japan. This investment represents about 60% of what they have spent there over the past 25 years, signaling a major expansion in their productio...
The Trade Desk's stock gained 5% following the launch of Kokai Zuma, an agentic AI upgrade to its advertising platform that promises improved campaign outcomes and simpler measurement. Despite a tough year with a 64% drop in stock price, this product...
