AppLovin Corp. has begun development on its own social networking product following an unsuccessful bid last year to acquire TikTok’s operations outside China. The company’s intentions were disclosed in a Chinese-language podcast featuring Chief Product and Engineering Officer Giovanni Ge, and were corroborated by a job advertisement that asked applicants to "architect the digital backbone of our next-generation social platform."
On the podcast, Ge outlined how AppLovin’s concept diverges from the approach taken by Meta Platforms Inc. Rather than first amassing audiences on owned properties and later monetizing them with advertising, AppLovin already operates an ad placement engine. Historically, that system has delivered ads into third-party apps, a model that persisted even after the firm sold its gaming portfolio last year.
If AppLovin’s social product comes to market, the company would gain more direct visibility into user behavior and greater authority over how ads are presented and targeted within its own ecosystem. Such a shift - pairing first-party audience reach with an existing ad-delivery stack - could change the company’s position in the mobile advertising landscape. It would also put AppLovin into head-to-head competition with established social platforms, including Meta, TikTok and Snap.
AppLovin had previously expressed interest in acquiring TikTok’s non-Chinese assets during a period when the U.S. threatened to ban the app unless ByteDance Ltd. sold it to a U.S.-based buyer. That effort did not come to fruition, and the company has since pursued the internal development route.
Market valuations for AppLovin shifted markedly over recent months. The company’s market capitalization reached $248 billion in December, a level driven by demand for its advertising technology and its role in helping mobile apps acquire users and monetize. Since then, shares have fallen about 40% year-to-date amid scrutiny from short sellers and investor concerns related to the company’s push into e-commerce advertising. That decline has reduced AppLovin’s market value to slightly below $140 billion.
What this means
- AppLovin is transitioning from an ad-placements partner to a potential operator of a first-party social platform, which could change how it accesses and harnesses user data.
- The move would put AppLovin in direct competition with major social media companies and alter dynamics within the mobile advertising sector.
- Recent market volatility in AppLovin shares reflects investor unease around its strategic pivots and external scrutiny.