AppLovin reported Q4 revenue of $1.66 billion, representing a 66% increase year-over-year. This result exceeded analyst estimates of $1.61 billion. The company posted adjusted EBITDA of $1.399 billion and earnings per share of $3.24. Management also issued positive Q1 2026 guidance that surpassed market consensus.
Despite the financial beat, shares fell 19.68% to close at $366.91 on February 12, 2026. The sell-off was driven by investor fears that AI disruption could erode the company's ad tech dominance. Increased competition from Meta and Google, coupled with a broader tech sector decline, further pressured the stock. Morgan Stanley lowered its price target from $800 to $720.
Some analysts remain bullish, viewing the price drop as a buying opportunity. Scotiabank maintains a $775 price target, while Wedbush holds a $640 target. Both firms cited strong margins and successful AI integration as primary reasons for their positive outlook.