Why Shares of AppLovin Were Soaring Today
Key Points
A research firm said that Meta would not bid on non-IDFA iOS traffic.
That traffic, which is untagged, is a major source of AppLovin's business.
The company continues to deliver strong growth, in part due to the strength of its AXON AI engine.
- 10 stocks we like better than AppLovin ›
Shares of AppLovin (NASDAQ: APP) were moving higher today on a report from Edgewater that Meta Platforms, one of its biggest competitors, is unlikely to bid on non-IDFA (identifier for advertisers) iOS traffic in the near-term. IDFA is the tool that allows Apple's iOS to track users, so advertisers can use their data.
That should open up more of the market for AppLovin, and it drove shares of the stock up 10.6% as of 10:57 a.m. ET today.
Will AI create the world's first trillionaire? Our team just released a report on the one little-known company, called an "Indispensable Monopoly" providing the critical technology Nvidia and Intel both need. Continue »
Image source: Getty Images.
What it means for AppLovin
One of AppLovin's strengths is monetizing non-IDFA iOS traffic, meaning users who haven't agreed to be tracked through conventional means. AppLovin's AXON AI engine uses contextual signals and proprietary algorithms to track users, and that business has been the core driver of its recent growth.
Meta is a huge player in digital advertising and on iOS, so its decision to not compete in that market is favorable to AppLovin, and some interpreted it as a reflection of AppLovin's strength.
What's next for AppLovin
AppLovin's AXON AI engine and its strength in mobile continue to drive significant growth for the company as revenue jumped 59% in the first quarter to $1.8 billion, and its net income from continuing operations was up 67%.
It's unclear if Meta will eventually compete for Non-IDFA iOS traffic, but the decision shows AppLovin's competitive advantage. The adtech stock has been volatile this year, in part due to broader concerns about AI disruption in software, but AppLovin's proprietary AI appears to be a source of strength for the company. It's unlikely to be disrupted by a custom-AI product.
Should you buy stock in AppLovin right now?
Before you buy stock in AppLovin, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and AppLovin wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $477,813!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,320,088!*
Now, it’s worth noting Stock Advisor’s total average return is 986% — a market-crushing outperformance compared to 208% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
See the 10 stocks »
*Stock Advisor returns as of May 26, 2026.
Jeremy Bowman has positions in AppLovin. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
Recommended Articles
