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 focus. While the company has shown impressive financial growth and retains positive analyst sentiment, ongoing concerns such as competition from Meta, an SEC investigation, and bearish technical indicators suggest it is prudent to hold off on investing until further clarity emerges.
The MACD is positive and expanding, indicating bullish momentum. However, the RSI is neutral, and the moving averages are bearish (SMA_200 > SMA_20 > SMA_5), signaling a downward trend. The stock is trading above its pivot level but below R1, with resistance at 435.139 and support at 401.944.
Strong financial performance in Q4 2025, with revenue up 65.88% YoY and net income up 84.11% YoY.
Positive analyst sentiment with multiple Buy and Overweight ratings, despite lowered price targets.
Speculation about a potential partnership with OpenAI to monetize ChatGPT through ads.
Ongoing SEC investigation into data collection practices.
Concerns about competition from Meta and its impact on AppLovin's growth.
Bearish technical indicators and potential short-term price decline based on historical patterns.
In Q4 2025, AppLovin reported revenue of $1.657 billion, up 65.88% YoY. Net income increased by 84.11% YoY to $1.102 billion, and EPS rose by 85.71% YoY to 3.25. Gross margin improved by 5.06% YoY to 88.93%.
Analysts remain generally positive on AppLovin with multiple Buy and Overweight ratings. However, price targets have been lowered across the board, reflecting concerns about competition and market conditions. The average price target remains significantly above the current price, suggesting long-term growth potential.
