For Immediate Release
Chicago, IL – October 13, 2025 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: AppLovin APP, The Trade Desk TTD and Magnite MGNI.
Here are highlights from Friday’s Analyst Blog:
AppLovin Reinvents Itself: Betting Big on AI-Powered Advertising
AppLovin’s story has shifted from game creation to algorithmic precision, a full-blown reinvention few tech firms may dare to attempt.
Once tethered to the unpredictable cycles of mobile gaming, the company hit a ceiling that stifled scale and sustainability. That limit vanished the moment CEO Adam Foroughi tore down the old blueprint. The landmark sale of AppLovin’s Apps segment to Tripledot Studios in June 2025 for $400 million in cash and a 20% ownership stake wasn’t just a business transaction; it was a clean break from its past identity.
Now operating without the crutch of owned gaming, AppLovin stands as a pure technology infrastructure company, with AI at its core. Its MAX mediation platform orchestrates massive volumes of in-app ad inventory. At the same time, AXON, the company’s machine learning powerhouse, dictates in real time where each ad should go for maximum yield. This ecosystem has redefined the ad-buying process, replacing the intuition of human sales teams with the precision of algorithms.
But such a radical shift doesn’t come without risks. The stakes are higher, the margin for error thinner. Yet, AppLovin’s move into the self-serve, AI-native ad market gives it a broader reach and far greater durability than its gaming roots ever could. What once relied on player engagement now thrives on data intelligence. APP isn’t just playing a new game; it’s building the platform everyone else will have to play on.
Peer Pressure?
Peers like The Trade Desk and Magnite operate in adjacent digital advertising spaces and have demonstrated comparable strengths. The Trade Desk, a leader in programmatic advertising, has maintained steady growth with a focus on connected TV and advanced data analytics. Magnite, as a supply-side platform, continues expanding its footprint across multiple device types and formats, emphasizing scale and inventory diversification.
AppLovin’s differentiation lies in combining AI with mobile gaming ad monetization, where it significantly outpaces both The Trade Desk and Magnite in revenue growth rates. However, The Trade Desk’s strong market position and Magnite’s expanding supply-side reach remain significant competitive factors that demand attention from investors examining advertising tech stocks.
APP’s Price Performance, Valuation and Estimates
The stock has gained 85% year to date compared with the industry’s 41% growth.
From a valuation standpoint, APP trades at a forward price-to-earnings ratio of 47X, which is well above the industry average of 30X. It carries a Value Score of F.
The Zacks Consensus Estimate for the company’s earnings has been on the rise over the past 30 days.
APP currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.
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AppLovin Corporation (APP): Free Stock Analysis Report The Trade Desk (TTD): Free Stock Analysis Report Magnite, Inc. (MGNI): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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