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AppLovin's new ad model boosts Q3 revenue 55%, shares show 40%+ upside despite growth risks.

Company Fundamentals
07 Nov 2026, 16:30 WIB
Seeking Alpha
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Bullish
AppLovin's new ad model boosts Q3 revenue 55%, shares show 40%+ upside despite growth risks.

AppLovin's improved gaming ad monetization model increased revenue by 55% and adjusted EBITDA by 59% in Q3 2026, driving stronger free cash flow and balance sheet health. Despite a post-earnings stock rally, shares trade at a discount compared to peers, suggesting over 40% upside potential to a long-term price target of $524.40. Risks include softer Q4 guidance indicating slower growth and early-stage consumer/CTV monetization. The stock is rated a buy, but investors are advised to be patient amid possible profit-taking after recent gains.

AppLovin shares rose 9.86% on Pluang as of Nov 07, 2026 21:41 WIB, trading at USD 391.22. The stock's market cap stands at $129.62 billion, reflecting significant investor interest despite recent mixed guidance. Typical hold time on Pluang is 23 days, with a balanced order activity of 54% buy and 46% sell.

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