Axon Ad Engine Roars And Short Seller Noise Fades But I'm Still Not Buying AppLovin Yet
AppLovin's AI-driven ad platform has strong long-term growth drivers, with management guiding for a minimum of high-teens annual revenue growth. An outcome-focused revenue model positions APP well to consistently keep increasing gross margins. And there are powerful operating leverage benefits to drive EBIT margin expansion to 70% in 3 years. I really don't like how management is divesting their apps/gaming business at throwaway valuations. This decision seems hurried, which could signal risk of poor moves in future M&As.
AppLovin's Premium Valuation Rests on Margin Strength and AXON Scale
APP's 34X forward P/E may look steep, but strong margins and AXON's ad spend scale help justify the premium.
AppLovin (NASDAQ: APP) Stock Price Prediction and Forecast 2025-2030 (June 27)
After hitting an all-time high of $525.15 in February, AppLovin Corp.'s (NASDAQ: APP) share price tumbled more than 35% due to a pending class action lawsuit and to short seller reports.
AppLovin's Real Upside Is Just Starting
AppLovin's 2024 revenue surged 43% to $4.71 billion, with net income jumping 343% to $1.58 billion. Advertising revenue reached $3.22 billion in 2024, up 75% year-over-year, contributing 90% of EBITDA with a 76% margin. Free cash flow doubled to $2.07 billion, representing 44% of revenue, while adjusted EBITDA hit $2.72 billion with 58% margin.
AppLovin: Ushering In A New Reign Of Advertising
AppLovin's AI-driven AXON platform delivers superior ad targeting and monetization, creating a sustainable competitive advantage in mobile advertising, especially gaming. The company's transition to a software platform model, with high-margin recurring revenue, drives profitability and customer stickiness through integrated MAX and AppDiscovery tools. APP stock is undervalued, offering a potential 43.4% upside, as strong revenue growth, operational efficiency, and attractive valuation metrics outpace sector peers.
Spotify vs. AppLovin: Which Ad-Powered Tech Stock is the Better Buy?
APP's AI-driven push into CTV and digital commerce boosts ad growth, while SPOT leans on engagement to deepen its moat.
AppLovin Stock Rebound Could Be in Sight
Software stock AppLovin Corp (NASDAQ:APP) has fallen sharply since its early-June peak , down 12.2% since the start of the month.
AppLovin: This Ad-Tech Juggernaut Is Ready To Shine
AppLovin's Q1 results were outstanding, with 40% YoY revenue growth and 81%+ EBITDA margins, driven by the scalable Ads business and AXON platform. The company's expansion into web-based advertising and development of a self-service platform opens up a massive, underpenetrated market for future growth. While not cheap, the premium valuation is supported by immense free cash flow, aggressive share buybacks, and explosive EPS growth that should outpace market expectations.
AppLovin (NASDAQ: APP) Stock Price Prediction and Forecast 2025-2030 (June 20)
After hitting an all-time high of $525.15 in February, AppLovin Corp.'s (NASDAQ: APP) share price tumbled more than 35% due to a pending class action lawsuit and to short seller reports.
AppLovin's CTV Expansion: Wurl Unlocks New Growth Channels
AppLovin expands beyond mobile with Wurl, using CTV and e-commerce to drive omnichannel ad growth.
AppLovin: EPS And Revenue Start Moving In Opposite Directions
AppLovin's growth story is fading, as the company reported a sequential decline in EPS in the latest quarter despite continued revenue growth. With the EPS growth momentum melting, various valuation approaches suggest the market is pricing in overly optimistic assumptions for AppLovin. Capital allocation strategy is also questionable, as increasing share buybacks amid high debt levels and a stagnant R&D budget falls short of industry best practices, which emphasize maximizing financial flexibility.
AppLovin Corporation (APP) is Attracting Investor Attention: Here is What You Should Know
AppLovin (APP) has been one of the stocks most watched by Zacks.com users lately. So, it is worth exploring what lies ahead for the stock.
