---
type: "Topics"
locale: "en"
url: "https://longbridge.com/en/topics/39337163.md"
description: "In December last year, $AppLovin(APP.US) touched its all-time high of $733, and then began a rollercoaster ride that plummeted as soon as it started. First, a short-seller report hammered it down, followed by the SEC announcing an investigation into AppLovin's data collection practices, and short-sellers shouting "data fraud"—a series of negative factors piled up, resulting in a 38% drop from the peak to now.But the fundamentals haven't collapsed: Q4 revenue was $1.66 billion, up 66% year-over-year, with an adjusted EBITDA margin as high as 84%, and free cash flow for the single quarter was $1.31 billion. This is a company that almost "prints money"—its ad AI platform Axon relies on algorithmic precision targeting with extremely low marginal costs, crushing peers in terms of profit margin.The biggest uncertainty: The SEC investigation is still ongoing, with "active and ongoing" being the official wording. No one knows when or how this uncertainty will be resolved. Additionally, Meta and new competitors are increasing their mobile ad investments, so it's worth watching whether the moat is being slowly eroded.Currently at $459, the analyst average target price is $648, with all 24 analysts recommending buy and 0 sell. The next earnings report is on May 13th.The fundamentals are strong, the stock price is discounted, and the SEC is a sword hanging overhead—what's your take on this blade?"
datetime: "2026-03-18T12:06:18.000Z"
locales:
  - [en](https://longbridge.com/en/topics/39337163.md)
  - [zh-CN](https://longbridge.com/zh-CN/topics/39337163.md)
  - [zh-HK](https://longbridge.com/zh-HK/topics/39337163.md)
author: "[江左散人](https://longbridge.com/en/profiles/26791295.md)"
---

# In December last year, $AppLovin(APP.US) touched i…


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## Comments (5)

- **kk木 · 2026-03-18T16:43:01.000Z**: The explosive financial report from last quarter turned out to be another drop of over ten percent.
- **宇宙第一美少女美乐蒂 · 2026-03-18T12:09:28.000Z**: Axon's algorithmic delivery efficiency is indeed high, and client ROI is great, not an exaggeration. But Meta has been catching up aggressively these past two years, the moat isn't as wide as people think.
- **努力冲鸭q · 2026-03-18T12:09:07.000Z**: The SEC investigation is no trivial matter. "Active and ongoing" means it's not over yet; once there's a penalty, it could easily drop another 20% in a flash. I can't handle that kind of risk.
- **subaru486 · 2026-03-18T12:08:45.000Z · 👍 1**: Seeing an 84% profit margin made me think it was a sure thing, but then the SEC came along and it dropped 38% instantly. Just lying flat and waiting for the earnings report now.
  - **复利进行时** (2026-03-18T12:10:38.000Z): If the fundamentals haven't collapsed, there's no need to panic too much. The key is the outcome of the SEC investigation. Wait for the earnings report on 5.13, and first see if the guidance can conti