What's Wrong With AppLovin Stock?

AppLovin’s sharp drop has erased much of the stock’s earlier momentum, leaving it trading near levels seen in late 2024 after its valuation was more than halved this year. The decline began earlier than the latest earnings report, when many software stocks were falling, though concerns that AI could disrupt adtech and software models also hang over the name. AppLovin reported revenue of $1.92 billion for the most recent period, slightly below Wall Street’s $1.94 billion estimate, sending shares lower even though the miss was not described as large. With the stock around 24 times earnings, far below an earlier multiple near 80, some see it as a potential contrarian bet, but volatility risk remains.