"AppLovin is one of the few growth stocks that can deliver strong top-line growth while boasting net profit margins above 60%. That's not a one-year blip, either. AppLovin's net profit margins first soared in 2024, going from 19.4% in 2023 to 49% in 2024. Then, AppLovin delivered a 62.6% net profit margin in 2025."
"A broader correction among software-as-a-service (SaaS) stocks has resulted in AppLovin shares dropping by almost 50% from their 2025 highs. They are still off by more than 40%. A short report from CapitalWatch also hurt the stock at the start of 2026, but, under legal pressure, the short-seller retracted some of its allegations in late February, saying that they were 'inaccurate.'"
AppLovin operates an advertising platform connecting businesses with app companies. Its shares surged from under $10 in early 2023 to over $700 by late 2025. A recent correction in SaaS stocks caused a nearly 50% drop from those highs. Despite this, AppLovin maintains net profit margins above 60% and strong revenue growth, with a 66% increase in Q4 2025. The company has a solid balance sheet, indicating sustainable growth. Concerns about AI replacing software are exaggerated and have contributed to the stock's decline.
Read at The Motley Fool
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