AppLovin stock slides into 2026 as investors test its sky-high margins
NEW YORK, January 2, 2026, 10:38 ET
- AppLovin shares fell about 6% in morning trade as a year-end pullback deepened.
- Zacks notes flagged an outsized “revenue-to-profit” conversion in the latest reported quarter, with an 82% adjusted EBITDA margin.
- Investors are watching whether growth and cash generation can justify a premium valuation versus ad-tech peers.
AppLovin shares fell about 6% on Friday morning, extending a retreat that began in the final days of 2025 as investors reassessed one of the market’s standout momentum names.
The move matters at the start of the year because AppLovin’s run-up has made the stock unusually sensitive to valuation questions and any hint that growth is cooling, even…
