AppLovin’s recent results demonstrate exceptional margin strength, with an 82% adjusted EBITDA margin in the third quarter of 2025. The company’s cost-light infrastructure and genAI-based optimization drive profitability, as evidenced by a 68% revenue increase and 92% net income surge year over year.

Meta Platforms focuses on AI-driven Advantage+ campaigns, while The Trade Desk expands its OpenPath platform to compete with AppLovin’s Axon. AppLovin’s emergence as a credible challenger in AI advertising intensifies competition in the industry.

APP stock has gained 104% in the past year, with a forward P/E ratio of 46.6 and a Value Score of D. The Zacks Consensus Estimate for APP’s earnings has been increasing, and it currently holds a Zacks Rank #3 (Hold).

Zacks’ Research Chief identifies a stock with potential to double in value, offering superior growth opportunities compared to previous recommendations. For more insights and recommendations from Zacks Investment Research, download the free report on the top stocks for the next 30 days.

Read more at Nasdaq: AppLovin’s Margin Engine Fuels its Accelerating Momentum