AppLovin Corporation

AppLovin runs the mobile-app advertising exchange and machine-learning-driven bidding stack that most iOS and Android game developers use to acquire users — its Axon 2 recommendation model is the actual moat. The stock has run 1,400% in three years, and the recent 34% YTD drawdown is being called a buying opportunity by the community while a chief growth officer just sold $82M in a single day.

• Revenue grew 59% YoY to $1.8B last quarter with 78% operating margin and $1.3B in free cash flow in a single quarter — this is one of the highest-margin advertising businesses in public markets, and the operating leverage is only just starting to compound.
• Trades at 47x TTM earnings and 30x sales — expensive, but with growth this fast and margins this high, the multiple is defensible; the community's comparison to Meta at 24x + 30% growth is directionally right, even if generous.
• Eduardo Vivas (chief growth officer per public filings) sold $82.6M of stock on June 18 — that's an enormous single-day sale from a top exec, and while it may have been 10b5-1 planned, the size right into a soft-tape sets off the same 'why is he doing that?' question the tape is asking.
• A Pomerantz Law Firm investigation notice was issued July 14 — opportunistic and often around drawdowns, but the fact that Pomerantz is circling into the recent sell-off is worth naming, not dismissing.
• 52-week position 27th percentile with position vs 200-day MA -15% — the tape has done real damage to a name growing 59%, which is why the bulls call it a setup and the bears call it a top.

August 5 Q2 earnings is where the story either resumes or breaks: a Q3 guide reflecting continued Axon 2 performance plus stable margins keeps the multiple; any deceleration in ad revenue growth or a change in margin trajectory validates the drawdown thesis. The fundamentals are genuinely elite; the insider selling is genuinely a caution.