"AppLovin reported 66% year-over-year growth and almost $1.7 billion in revenue in Q4 2025, on Thursday evening. Its net income (i.e., profit) went from $600 million in Q4 2024 to $1.1 billion in the past quarter. But shares dropped by 20% to around $370 as of today, a continuation of the wild ride the company's stock price has taken over the past few years."
""There is a real disconnect between market sentiment and the reality of our business," CEO Adam Foroughi told investors during the earnings call. AppLovin's headwinds have come from all quarters. The company is a torchbearer for the subscription software category, which has been hammered by Wall Street investors lately as vulnerable to replication by generative AI coding. AppLovin is also the target of a substantial short-seller campaign of individual investors and anonymous hedge funds that have released condemnatory reports."
"It is many years, for instance, since top executives at Google or Meta would be caught dead using the word "CPM." Let alone noting that, "as we know, most people are ADD and don't really watch the ad on TV these days," which Foroughi said. Followed by: "Our ads are over 30 seconds of engagement. The user can't do anything else. They're already on their phone. It's a full-screen lockup.""
AppLovin reported 66% year-over-year growth and nearly $1.7 billion revenue in Q4 2025, with net income rising from $600 million to $1.1 billion year-over-year. Shares fell about 20% to roughly $370 despite the financial gains. CEO Adam Foroughi said there is a disconnect between market sentiment and business reality. Main headwinds include investor concerns that subscription software can be replicated via generative AI and an aggressive short-seller campaign. Investors pressed for proof around AppLovin's nascent ecommerce advertising product. Foroughi emphasized mobile full-screen ads and the company’s focus on DTC and Shopify merchants.
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