AppLovin Is the Worst-Performing Stock in the S&P 500 This Year. Has the Market Overreacted?

AppLovin stock has plummeted 65% in 2026, becoming the S&P 500's worst performer amid AI disruption concerns. However, the company maintains strong fundamentals with 56% revenue growth and 66% profit margins. The analyst suggests the market may have overreacted, with the stock now trading at a more reasonable 18x trailing earnings compared to its inflated valuation at year-start, potentially making it a contrarian buying opportunity for risk-tolerant investors.