February 17, 2026 12:06 AM GMT Internet | North America What APP and U Had to Say About AI Disruption We lay out key takeaways from APP and U's commentary at earnings, as the companies addressed the AI disruption bear case head on. We came away incrementally confident in their ability to lean into emerging opportunities and adopt these new tools going forward. Key Takeaways APP and U Pushed Back on the Recent AI Disruption Narrative, Highlighting Opportunities Rather than Risks... Over the past several week ...

February 4, 2026 08:11 PM GMT AppLovin Corp | North America Key Takeaways So What Factors is the Market Debating on APP? CloudX and META and Genie, Oh My APP shares have derated to 15x '27 EBITDA on fresh worries about disruption to the industry. We analyze three key investor concerns on CloudX, META, and Genie that have arisen in recent days. While these are real concerns, the magnitude of derating may also be creating an opportunity. Remain OW. | M AppLovin Corp North America CloudX and META and Genie, Oh ...

Core Insights - The article provides a comprehensive analysis of Adobe in comparison to its major competitors in the Software industry, focusing on financial metrics, market position, and growth potential [1] Company Overview - Adobe specializes in content creation, document management, and digital marketing software and services, operating through three segments: digital media content creation, digital experience for marketing solutions, and publishing for legacy products [2] Financial Metrics Comparison - Adobe's Price to Earnings (P/E) ratio is 20.12, which is 0.21x lower than the industry average, indicating potential for growth at a reasonable price [3] - The Price to Book (P/B) ratio for Adobe is 12.10, which is 0.67x below the industry average, suggesting the stock may be undervalued based on its book value [3] - Adobe's Price to Sales (P/S) ratio is 6.04, which is 0.28x the industry average, indicating potential undervaluation based on sales performance [3] - The Return on Equity (ROE) for Adobe is 15.87%, which is 7.49% above the industry average, reflecting efficient use of equity to generate profits [3] - Adobe's Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) stands at $2.46 billion, which is 2.44x above the industry average, indicating stronger profitability [3] - The gross profit for Adobe is $5.35 billion, which is 3.07x above the industry average, showcasing strong earnings from core operations [3] - Revenue growth for Adobe is 3.44%, significantly lower than the industry average of 41.05%, indicating a slowdown in sales expansion [3] Debt to Equity Ratio - Adobe has a moderate debt-to-equity ratio of 0.57, placing it in the middle among its top four peers, suggesting a balanced financial structure [6] Key Takeaways - Adobe's low P/E, P/B, and P/S ratios compared to peers indicate potential undervaluation, while its high ROE, EBITDA, and gross profit suggest strong profitability and operational efficiency [7] - The low revenue growth rate raises concerns about Adobe's ability to expand its market share relative to industry competitors [7]

Core Insights - The article provides a comprehensive comparison of Palantir Technologies against its key competitors in the Software industry, focusing on financial metrics, market position, and growth prospects to offer insights for investors [1] Company Overview - Palantir Technologies is an analytical software company founded in 2003, focusing on leveraging data for efficiency in client organizations, serving both commercial and government clients through its Foundry and Gotham platforms [2] Financial Metrics Comparison - Palantir's Price to Earnings (P/E) ratio is 404.15, significantly higher than the industry average, indicating a premium valuation [3] - The Price to Book (P/B) ratio for Palantir is 62.94, which is 4.17 times above the industry average, suggesting a potential overvaluation relative to book value [3] - Palantir's Price to Sales (P/S) ratio stands at 113.92, which is 7.26 times the industry average, indicating possible overvaluation in sales performance [3] - The Return on Equity (ROE) for Palantir is 7.6%, which is 1.24% below the industry average, suggesting inefficiencies in profit generation from equity [3] - Palantir's Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) is $400 million, which is 0.35 times below the industry average, indicating potential financial challenges [3] - The gross profit for Palantir is $970 million, which is 0.49 times below the industry average, suggesting lower revenue after production costs [3] - The revenue growth for Palantir is 62.79%, exceeding the industry average of 37.75%, indicating strong sales performance [3] Debt to Equity Ratio - Palantir has a debt-to-equity (D/E) ratio of 0.04, indicating a favorable balance between debt and equity compared to its top four peers, which is perceived positively by investors [6][7] Key Takeaways - High P/E, P/B, and P/S ratios suggest Palantir may be overvalued compared to peers, while low ROE, EBITDA, and gross profit alongside high revenue growth indicate operational inefficiencies that could affect long-term profitability [8]

Summary of Conference Call Notes Industry Overview - The report focuses on the **Internet industry in North America** and provides insights into the performance of major companies within this sector [1][2]. Key Companies and Performance - **Amazon (AMZN)**: - Price: $227.35 - Market Cap: $2,465,611 million - 1 Week Performance: +0.5% - 2026E EV/EBITDA: 12.5x, which is a -7% discount compared to the 2-year average [4][5][9]. - **Alphabet (GOOGL)**: - Price: $307.16 - Market Cap: $3,748,273 million - 1 Week Performance: -0.7% - 2026E EV/EBITDA: 17.2x, which is a +36% premium compared to the 2-year average [4][5][9]. - **Meta (META)**: - Price: $658.77 - Market Cap: $1,694,356 million - 1 Week Performance: +2.3% - 2026E EV/EBITDA: 11.9x, which is a -7% discount compared to the 2-year average [4][5][9]. - **Uber (UBER)**: - Price: $79.31 - Market Cap: $168,485 million - 1 Week Performance: -6.8% [5]. - **Lyft (LYFT)**: - Price: $19.42 - Market Cap: $8,127 million - 1 Week Performance: -4.7% [5]. - **AppLovin (APP)**: - Price: $721.37 - Market Cap: $245,968 million - 1 Week Performance: +7.6% [5]. - **Roblox (RBLX)**: - Price: $81.94 - Market Cap: $60,461 million - 1 Week Performance: -7.4% [5]. - **Zillow (Z)**: - Price: $68.96 - Market Cap: $17,671 million - 1 Week Performance: -7.7% [5]. Market Performance Insights - The overall performance of internet names was flat, with the S&P 500 (SPX) and Nasdaq 100 (NDX) showing minimal changes [1][2]. - Digital advertising companies like GOOGL and META showed mixed performance, while e-commerce companies like AMZN and ETSY had slight gains [5]. - The shared economy sector, including UBER and LYFT, experienced declines, indicating potential challenges in this segment [5]. Valuation Metrics - The report highlights the **EV/EBITDA** multiples for major companies, indicating that: - AMZN is trading at 12.5x, GOOGL at 17.2x, and META at 11.9x, with varying premiums and discounts compared to historical averages [9][10]. - The **market-cap weighted average** performance for digital ads was +0.3%, while e-commerce was +0.5% [5]. Additional Insights - The report notes that treating stock-based compensation (SBC) as cash can significantly impact EV/EBITDA multiples, with increases of approximately 38% for digital media and 33% for e-commerce [18][23]. - The **travel sector** showed a market-cap weighted average performance of +3.3%, indicating a recovery trend in this area [5]. Conclusion - The North American internet industry remains attractive, with varied performance across different segments and companies. The analysis of valuation metrics and market performance provides insights into potential investment opportunities and risks within this sector [2].

Core Insights - The article provides a comprehensive evaluation of Palantir Technologies in comparison to its major competitors in the Software industry, focusing on financial metrics, market standing, and growth prospects [1] Company Overview - Palantir Technologies is an analytical software company founded in 2003, focusing on data efficiency for commercial and government clients through its Foundry and Gotham platforms [2] - The company operates exclusively with entities in Western-allied nations, aligning its business practices with Western values [2] Financial Metrics Comparison - Palantir's Price to Earnings (P/E) ratio is 447.24, significantly exceeding the industry average by 5.56 times, indicating a premium valuation [3] - The Price to Book (P/B) ratio stands at 70.15, which is 3.98 times higher than the industry average, suggesting a premium valuation relative to book value [3] - The Price to Sales (P/S) ratio of 126.06 is 7.8 times the industry average, indicating potential overvaluation in relation to sales performance [3] - The Return on Equity (ROE) is 7.6%, which is 0.93% below the industry average, suggesting inefficiency in utilizing equity for profit generation [3] Profitability and Growth - Palantir's Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) is $400 million, which is 0.36 times below the industry average, indicating potential financial challenges [8] - The gross profit of $970 million is 0.47 times below the industry average, suggesting lower revenue after accounting for production costs [8] - The company is experiencing a remarkable revenue growth rate of 62.79%, significantly outperforming the industry average of 18.91% [8] Debt-to-Equity Ratio - Palantir has a lower debt-to-equity ratio of 0.04 compared to its top 4 peers, indicating a stronger financial position and less reliance on debt financing [11] - This favorable balance between debt and equity suggests a more stable financial health for the company [11] Summary of Key Takeaways - Palantir Technologies exhibits high P/E, P/B, and P/S ratios compared to industry peers, indicating potentially overvalued stock [9] - The low ROE, EBITDA, and gross profit suggest lower profitability and operational efficiency compared to competitors [9] - However, the high revenue growth rate indicates strong potential for future growth and market expansion within the Software industry [9]

Core Insights - The article provides a comprehensive analysis of Palantir Technologies in comparison to its competitors in the Software industry, focusing on financial metrics, market position, and growth prospects [1] Company Overview - Palantir Technologies is an analytical software company founded in 2003, focusing on data efficiency for commercial and government clients through its Foundry and Gotham platforms [2] - The company operates exclusively with entities in Western-allied nations, aligning its operations with Western values [2] Financial Metrics Comparison - Palantir's Price to Earnings (P/E) ratio is 445.86, significantly higher than the industry average, indicating a premium valuation [3] - The Price to Book (P/B) ratio stands at 69.94, which is 4.03 times the industry average, suggesting potential overvaluation [3] - The Price to Sales (P/S) ratio is 125.67, 7.83 times the industry average, further indicating possible overvaluation [3] - Return on Equity (ROE) is 7.6%, which is below the industry average by 0.93%, suggesting inefficiencies in profit generation [3] - EBITDA is reported at $400 million, which is 0.36 times below the industry average, indicating potential financial challenges [7] - Gross profit is $970 million, 0.47 times below the industry average, suggesting lower revenue after production costs [7] - Palantir exhibits a remarkable revenue growth rate of 62.79%, significantly outperforming the industry average of 18.91% [7] Debt-to-Equity Ratio - Palantir has a lower debt-to-equity ratio of 0.04 compared to its top 4 peers, indicating a more favorable balance between debt and equity, which is a positive aspect for investors [11] Key Takeaways - The high P/E, P/B, and P/S ratios suggest that Palantir is trading at a premium compared to its peers, while low ROE, EBITDA, and gross profit indicate inefficiencies in resource utilization [9] - The strong revenue growth rate highlights Palantir's top-line expansion relative to industry counterparts [9]

Core Viewpoint - The S&P 500 index is designed to reflect the stock market, and the inclusion of companies like AppLovin, despite controversies, is not an endorsement of their practices but rather a snapshot of market conditions at a given time [3][5][15]. Group 1: S&P 500 Inclusion Criteria - The S&P 500 has specific eligibility requirements based on size, liquidity, and profitability, but does not consider quality or behavior in its selection process [2]. - The index is not a stamp of approval for companies; it reflects the equities universe at a moment in time [3]. - The committee responsible for the index does not review every company annually, focusing instead on maintaining stability and sector weight consistency [12]. Group 2: AppLovin's Controversies - AppLovin faces accusations of ad fraud, illicit tracking of children, and connections to Chinese entities, leading to investigations by the SEC and state attorneys general [4]. - Despite these issues, AppLovin's stock has surged over 5,500% since the end of 2022, with a market capitalization exceeding $200 billion [5]. Group 3: Market Dynamics and Historical Context - The current market environment, characterized by a bull market and the AI boom, has allowed stocks with questionable fundamentals to rise significantly [10]. - Historical parallels are drawn to the dot-com era, where companies with shaky fundamentals were added to the S&P 500, only to be removed after the market correction [10][11]. Group 4: Investor Perception and Stock Performance - Inclusion in the S&P 500 is perceived as a milestone for companies, often leading to a temporary rise in stock prices due to index tracking funds needing to purchase shares [15][16]. - However, this inclusion does not alter the underlying fundamentals of the companies, and sustained performance is necessary for long-term stock price increases [16].

October 15, 2025 05:22 PM GMT AppLovin Corp | North America Key Takeaways from Our Expert Call on APP Ecommerce We hosted an industry expert to discuss APP's ecommerce ad business, which launched self-serve on 10/1. We came away bullish on the opportunity to add up to 900 new advertisers through year end (vs. 600-700 existing), even as current customers plan to significantly increase spend into year end. On 10/15, we hosted an investor conversation with an industry expert on APP and discussed early learning ...

Summary of AppLovin Corp 2Q25 Earnings Call Company Overview - **Company**: AppLovin Corp - **Industry**: Digital Advertising and Gaming Key Points Financial Performance - **2Q25 Advertising Revenue**: $1,259 million, representing a **77% YoY increase**, exceeding expectations of $1,231 million and $1,225 million [2][10] - **EBITDA Estimate for FY26**: Increased to **$6.18 billion** from $5.65 billion, driven by better-than-expected gaming trends and the rollout of a self-serve web-based ad platform [1][11] - **Projected Revenue Growth**: Expected to reach **$7.576 billion** in FY26, with a **41% YoY growth** [13] Strategic Initiatives - **Self-Serve Ad Platform**: The rollout is set to begin in October 2025, starting with referrals from existing advertisers, aiming for a broader public launch in 1H26 [1][2] - **International Expansion**: The company plans to expand inventory access to international markets, which may reduce advertiser churn risk [1] Upside and Downside Scenarios - **Upside Case**: A target price of **$660** reflects a **69% upside**, with anticipated revenue growth of **74%** in FY25 and **44%** in FY26 [2][13] - **Downside Case**: A target price of **$260** indicates a **33% downside**, with potential challenges in web-based ad contributions and international expansion logistics [3][13] Valuation Metrics - **Current Price**: $390.57 as of August 6, 2025 [5] - **Price Target**: Maintained at **$540**, based on a **30x multiple on FY26 EBITDA** [8][11] - **Market Capitalization**: Approximately **$143 billion** with **366 million shares outstanding** [5] Profitability and Margins - **EBITDA Margin**: Expected to be **81.6%** in FY26, indicating strong profitability [9][13] - **Free Cash Flow**: Projected to be **$4.838 billion** in FY26, with a free cash flow margin of **63.9%** [9] Risks and Considerations - **Execution Risks**: Uncertainties regarding the pace of the referral model and visibility into web-based ad contributions could impact quarterly performance [3] - **International Challenges**: Expansion may require significant investment to localize services for international markets [3] Additional Insights - **Gaming Revenue**: Expected to grow to **$5.876 billion** by FY26, with a **28.5% YoY growth** [9][13] - **Debt Position**: Net debt projected to decrease significantly, moving from **$2.619 billion** in FY23 to **$303 million** by FY26 [4] This summary encapsulates the key financial metrics, strategic initiatives, and potential risks associated with AppLovin Corp as discussed in the 2Q25 earnings call.