AppLovin (APP) Sees -27.2% Return, Plans AI Ad Tech Expansion

In its Q2 2026 investor letter, Fundsmith Equity Fund noted that AppLovin Corporation (NASDAQ: APP) had a one-month return of -27.20% and a share price of $395.90, with a market capitalization of $133 billion. The firm's report highlighted AppLovin's advanced AI recommendation engine, AXON, which is expected to boost revenues by 20% annually by improving customer targeting. AppLovin serves over 1 billion daily active users and generates higher advertising revenue compared to Snap, Pinterest, Reddit, and X. The firm plans to expand its AI ad-matching technology into e-commerce and Connected TV advertising, potentially enhancing its growth prospects for investors.