AppLovin Stock Fell 60 Percent From All-Time High

The company valuation dropped to $104 billion after missing financial projections this quarter.

Updated on Sept. 27, 2026 in Corporate Finance

Isometric editorial illustration of a heavy dark steel weight resting on a slender geometric pedestal, representing a decrease in valuation. — AppLovin shares fell 60 percent from their all-time high as the gaming company's valuation dropped to $104 billion following missed revenue targets. AI Illustration. Upload story photo >

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AppLovin shares have declined 60% from their record high as the company's valuation dropped from $246 billion to approximately $104 billion. The slide follows a period where financial results for revenue and adjusted EBITDA fell below company guidance and analyst expectations.

Why it matters

The downturn highlights investor concerns regarding the company's gaming business performance after reported figures missed targets. Analysts responded by lowering price targets across several major financial institutions.

AppLovin reported revenue of nearly $2 billion and adjusted EBITDA of $1.5 billion. Financial analysts have since adjusted price targets, with Morgan Stanley lowering its target to $450, Evercore to $510, and BTIG to $396.

The players

AppLovin

AppLovin is a technology company that provides a software platform for mobile app developers to grow their businesses.

Matthew Cost

Matthew Cost is an equity analyst at Morgan Stanley who covers the internet and software sectors.

Clark Lampen

Clark Lampen is an analyst at BTIG who specializes in tracking digital media and technology companies.

Robert Coolbrith

Robert Coolbrith is an analyst at Evercore that focuses on research and equity valuation in the technology space.

The details

Management attributed the weak performance to the company's gaming business, which failed to meet internal and market projections. Despite the current decline, projections estimate full-year revenue at $8.1 billion, with growth expected to reach $10.2 billion next year.

The stock reached a higher valuation level in May 2025.
A significant price gap emerged following weak financial results in August 2026.
This report was published in September 2026.

Market Dynamics

The stock's decline reflects the broader volatility seen across high-growth technology sectors during recent earnings periods. This shift follows the pattern set by the NASDAQ high-growth technology valuation correction cycle as investors re-evaluate profit sustainability.

Retail and institutional investors are navigating revised price targets that reflect lower confidence in near-term gaming sector growth. Shareholders should review their portfolio allocations in light of the reduced market valuation and analyst outlooks.

The takeaway

Market corrections often follow periods where gaming revenue fails to meet aggressive analyst growth projections. Investors should monitor the company's strategic pivot regarding its gaming business to gauge future performance.