AppLovin reported impressive fourth-quarter 2025 results, with revenue of $1.66 billion and net income of $1.10 billion. The company anticipates first-quarter 2026 revenue between $1.75 billion and $1.78 billion, emphasizing a shift toward AI-powered advertising. This transition away from its Apps business includes plans for an AI-driven ad platform and a potential social network, amidst ongoing SEC scrutiny. The latest 10-K filing highlights this pivot and investments in the Axon AI engine, indicating a focus on e-commerce and connected TV. While these developments strengthen AppLovin’s AI narrative, rising regulatory risks could impact its execution. Analysts forecast long-term earnings of approximately $6.2 billion by 2028, showcasing a potential fair value of $737.21, indicating a substantial upside. However, cautious estimates suggest only a 13% annual revenue growth. Investors should carefully weigh these dynamics against competitive and privacy challenges before making decisions.
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Investor Reactions to AppLovin’s Shift Towards AI Ads, Social Networking Initiatives, and SEC Oversight
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