AppLovin (APP) — Neutral? AppLovin's 66% Margin: Real Profit or Accounting Trick?
Deep Values: Value Investing Deep Dives · Nov 6, 2026 · 22:12
Deep Values: Value Investing Deep Dives
Deep Values: Value Investing Deep Dives · Nov 6, 2026 · 22:12
Listen in the Podli app 🎧
Follow your favourite podcasts, listen offline and in the car with CarPlay and Android Auto, and always pick up where you left off. Free to try.
Neutral on AppLovin (APP) as of 2026-11-05: 66% net income margin. AppLovin turned $2.18B of quarterly revenue into a 66% net margin, and we strip out stock pay and net-revenue accounting to find true owner earnings. With profit up 72% in Q3 2026, knowing what that margin really measures matters now.
• Free DeepValues app, intrinsic value and margin of safety for any stock
• Is the market overvalued? Buffett Indicator & Buffett Indicator & Shiller PE
Android (Buffett Indicator & Shiller PE)
Chapters
(0:00) AppLovin: Flawless Engine
(4:03) Footnote Ledger: Accounting
(5:05) Moat Analysis: WIDENING
(5:47) Return on Capital vs Cost
(6:28) Q3 2026 Owner Earnings
(8:12) Footnote Ledger: Risks
(8:53) Non-GAAP Reconciliation
(9:38) Q3 2026 Owner Earnings
(10:59) Capital Allocation Scorecard
(12:48) Footnote Ledger: Risks
(14:27) Non-GAAP Reconciliation
(15:08) Footnote Ledger: Accounting
(15:49) Capital Allocation Scorecard
(16:49) Valuation: Perfection Priced
(17:51) Inverting the Problem
(19:33) VERDICT: FAIRLY VALUED
(20:34) Inverting the Problem
(21:20) DeepValues: Investing Tools
(21:47) Get the apps
Full open-source research report
DeepValues toolkit
• Run the numbers on any stock yourself, free
• Free Margin of Safety Weekly, every Saturday (guru moves, market temperature, the week's research; no account needed)
Episodes: Deep Values: Value Investing Deep Dives
