Applovin is being proven successful in E-commerce Ads

$AppLovin Corporation(APP)$ Q4 revenue & profit are STRONG BEAT: ad revenue of $1 billion (e-commerce may reach 10%), EBITDA margin of 61.8% exceeded expectations.

Axon 2.0 technology moat, currently in the ad loading efficiency & accuracy crushed competitors, in the game advertising market is the absolute leader, customer acquisition market share of more than 30% (+10pct year-on-year);

The e-commerce track became the second curve, a major factor is Chinese cross-border sellers wildly buying volume.The largest e-commerce customer's budget in 2025 skyrocketed 6 times, and the platform's e-commerce budget accounted for nearly 10%, crushing TikTok and pushing Google;

• Controversy point 1: Previously Lauren Balik short APP, the main point of contention is the advertisement misclassification, game loading rate is too high, these problems still exist, but Q4 this time to divest the inefficient game business anti-promotion of efficiency, as long as the commercialization effect crushes the peers on the line.

• Controversial point 2: data short board to be mended: compared to Meta lack of user labels, e-commerce due to incomplete data is temporarily at a disadvantage, but IAP consumption data may become the key to break the game.:

Short-term look at efficiency: strong cost control by management and operational leverage to release profit margins;

Long-term bet on track: eat up cross-border dividends and extend Axon 2.0 continuous iteration to more industries.

Risks: slow e-commerce data accumulation may drag down growth rate; TikTok, Unity, and other competing technologies backlash.

I think the interesting point is:

1. The company's gaming ads have always stepped on the gray chain, so it's not unreasonable to say that it's a "whoever dares to do it boldly will be able to produce results" company;

2. E-commerce business growth so fast is indeed the market did not expect, investors will think Axon 2.0 in the game advertisers on this set in the e-commerce can also work, and therefore will attract more e-commerce over the placement, which will inevitably have a negative impact on the $Meta Platforms, Inc.(META)$ $Alphabet(GOOG)$ Tik Tok, etc.'s fundamentals

3. Technically speaking, the Axon 2.0 set, META/GOOGL surely have both, the problem is, one specializes, the other is that the big players have a wide range of business variations, and they don't exactly match in terms of input efficiency;