AppLovin vs. Palantir: Which AI-Powered Tech Stock Offers Better Value in 2026?

What happened

AppLovin reported FY 2025 revenue of $5.5 billion（約8800億円） (70% growth) with net income of $3.3 billion（約5300億円）, while Palantir posted $4.5 billion（約7200億円） in revenue (56.2% growth) and net income of $1.6 billion（約2600億円）. Both companies are using AI to drive their respective business lines—AppLovin in mobile advertising optimization, Palantir in enterprise data analytics platforms.

Why it matters

AppLovin trades at a forward P/E of 35.1x and P/S ratio of 34.6x, significantly cheaper than Palantir's 90.0x forward P/E and 67.1x P/S ratio. For investors evaluating growth stocks, valuation matters: AppLovin's lower premium relative to its 70% revenue growth may offer better value, though both face distinct risks—AppLovin depends heavily on Apple's app store policies and faces a class-action lawsuit over user tracking in the Netherlands, while Palantir is navigating a federal securities investigation and relies heavily on Amazon and Microsoft cloud infrastructure.

What to watch

AppLovin estimates Q2 revenue of about $1.9 billion（約3000億円） (up from $1.3 billion（約2100億円） in the prior year), while Palantir forecasts Q2 sales of around $1.8 billion（約2900億円） (nearly double 2025's $1 billion（約1600億円）). Palantir's stock fell to a 52-week low of $106.37 in June as investors cashed in on its elevated valuation, even as both companies continue forecasting strong growth.