Thoughts on Applovin Q2

Thoughts on AppLovin $APP q2 results I don’t think this was some thesis-breaking quarter. The numbers were a little light by AppLovin’s standards, but revenue still grew 53% and EBITDA margins were 84%. Management basically said their ad model didn’t improve as much as usual during Q2, then they pushed a bigger update right after the quarter ended and growth picked back up. The problem is the moat still isn’t perfect. Don’t attack me for saying that, but it’s true. $APP depends on Apple and Google’s ecosystems, and advertisers will only stick around as long as the platform keeps delivering good results. Still, there wasn’t any sign that customers were leaving or anything like that. For now, the numbers are solid. At $349, it trades at around 16.5x estimated 2027 earnings, (estimates per Seeking Alpha). That’s pretty cheap for a business growing this fast with margins this high. Q3 matters a lot now because management says the slowdown was temporary, but unless that turns out to be wrong, I think the selloff is overdone