AppLovin Upgraded to Buy Following 42% Price Correction and Record Earnings

Key Facts

1AppLovin was upgraded from Hold to Buy following a price correction of over 42%.

2The company posted Q4 2025 sales of $1.66B, a 21% year-over-year increase.

3Adjusted EPS grew 87% to $3.24, with an adjusted EBITDA margin of 84%.

AppLovin (APP) has received a rating upgrade from "Hold" to "Buy" following a significant stock price correction of over 42%. Analysts suggest that the recent valuation reset provides a favorable entry point for investors as execution risks have largely been resolved. The company reported robust financial results for the fourth quarter of 2025, with sales reaching $1.66 billion, a 21% increase year-over-year. Adjusted earnings per share (EPS) saw a remarkable 87% growth, climbing to $3.24 during the same period. Furthermore, AppLovin maintained an impressive adjusted EBITDA margin of 84%, highlighting its strong operational efficiency. This upgrade reflects growing confidence in the company's financial momentum and its ability to deliver sustained value in the tech sector.