Why We're Hedging AppLovin's 80% Margins

Podcast: Chip Stock Investor Podcast · Nicholas Rossolillo; Kasey Rossolillo

Opublikowano: 2026-09-24

AppLovin (APP) runs a 77.7% operating margin, but its revenue growth is slowing, and that combination draws competition. We just took a position in Unity Software (U). This episode walks through the data behind it.Four companies are competing over mobile advertising and user acquisition: AppLovin, Unity Software, Liftoff Mobile (LFTO), and Digital Turbine (APPS). Using our Compare Companies tool, we line up revenue growth, operating margins, and free cash flow across all four.The case for Unity as a hedge against AppLovin comes down to three numbers: re-accelerating revenue, expense discipline, and an improving GAAP operating margin. We also...