"AppLovin reported its best quarter in history, with record revenue, 84% EBITDA margins, and $3.24 in earnings per share, yet the stock declined nearly 30%. That kind of disconnect is worth understanding, especially for retail investors. AppLovin (NASDAQ:APP) reported record Q4 earnings on February 10, posting $1.657 billion in revenue against a $1.618 billion estimate and $3.24 in EPS versus $2.97 expected."
"The company achieved an 84% adjusted EBITDA margin, a profitability level almost unprecedented at this scale, yet shares declined 28.90% over the past month to $404.39. The disconnect between results and reaction has sparked fierce debate on Reddit about whether the selloff represents fear or opportunity. As it tends to do, social sentiment on Reddit flipped sharply in recent weeks."
AppLovin posted record Q4 earnings with $1.657 billion in revenue and $3.24 in EPS, beating estimates. The company reported an 84% adjusted EBITDA margin, an unusually high profitability level at scale. Shares declined roughly 29% to $404.39 despite those results. Retail investor sentiment on Reddit shifted from bearish to bullish, with sentiment scores rising from about 30 to roughly 70. Supporters highlighted 40% revenue growth, 84% EBITDA margins, a 25x forward P/E, proprietary AXON 2 ad tech, and $4.0 billion in trailing twelve-month free cash flow. Debate centers on whether the selloff reflects fear or opportunity.
Read at 24/7 Wall St.
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