Investors warn AppLovin's algorithmic moat is vulnerable, advising against buying despite strong Q2 revenue
In a September 3 podcast, investors Kyle Grieve and Shawn O'Malley analyzed mobile ad platform AppLovin (NASDAQ:APP), concluding that its core algorithmic advantage is vulnerable to competitors. Despite AppLovin reporting $1.92 billion in Q2 2026 revenue with 84% EBITDA margins, Grieve set a price target of $480, implying only a 9% compound annual growth rate (CAGR), deeming the risk-reward unattractive. AppLovin shares closed at $319.05 on September 2, marking a 52.7% year-to-date decline, with its market capitalization at approximately $107.2 billion as of September 3.
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