We came across a bullish thesis on AppLovin Corporation on Foliotrail’s Substack. In this article, we will summarize the bulls’ thesis on APP. AppLovin Corporation’s share was trading at $437.34 as of August 7th. APP’s trailing and forward P/E were 60.07 and 72.99, respectively according to Yahoo Finance.
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AppLovin (NASDAQ: APP) delivered an exceptional Q2 2025, reporting 77% revenue growth to $1.26 billion and a 99% surge in adjusted EBITDA to $1.02 billion, yielding an industry-leading 81% margin. This significantly outpaced prior full-year projections and was fueled primarily by the company’s high-margin gaming ad business. AppLovin’s Q3 guidance maintains this momentum, with expected revenue between $1.32–$1.34 billion and EBITDA of $1.07–$1.09 billion.
The company’s strategic shift away from mobile gaming to focus on its advertising technology platform is paying off, with a strong balance sheet showing $1.2 billion in cash, including $425 million from the Apps business sale. Capital returns remain a priority, with $341 million in share repurchases during the quarter. A pivotal development is the upcoming launch of AXON ads manager—a self-serve platform set to broaden AppLovin’s reach beyond gaming and into untapped web-based advertising markets, including e-commerce.
CEO Adam Foroughi highlighted this expansion as a transformative opportunity, positioning the company to automate and scale ad operations using AI. However, management also acknowledged the complexity of entering web advertising, citing differences in attribution and ecosystem fragmentation versus mobile. The company is addressing these with deeper third-party integrations and a Shopify app, while deliberately limiting customer onboarding to ensure the platform’s Q4 rollout is executed smoothly.
AppLovin’s results not only reflect strong execution but also underline its evolving role as a performance marketing powerhouse, with multiple tailwinds in place to support continued growth and revaluation. The strategic focus, robust financials, and AI-led automation offer a compelling investment case.
Previously, we covered a bullish thesis on AppLovin Corporation by Jimmy Investor in March 2025, which highlighted the company’s AI-driven ad tech platform, strong financials, and pivot away from gaming. The company’s stock price has appreciated by approximately 70% since our coverage. This is because the thesis played out. Foliotrail shares a similar view but emphasizes the momentum from AXON and web ad expansion.
