AppLovin's transformation into an AI-powered ad platform with its Axon engine has driven exceptional revenue growth and profitability, supporting my Strong Buy rating. The company's divestment from gaming and focus on AI marketing expands its total addressable market, especially in e-commerce and web advertising. Continuous R&D and Axon's self-learning capabilities create a robust competitive moat, driving superior advertiser ROI and long-term compounding potential.
AppLovin's Q4 revenue reached $1.37 billion, growing 44% year-over-year, with total adjusted EBITDA margins holding strong at around 62%. The core Advertising segment delivered $999 million revenue at an 81% margin, driven by Axon's algorithmic improvements and reinforcement learning. Web ad churn among top-spending clients remains under 3% while current market penetration stays below 0.1%, signaling early stickiness.
AppLovin is a standout AI-powered adtech platform, delivering robust cash flow and outpacing industry growth with expanding margins and a capital-light model. Despite a volatile stock ride, AppLovin remains undervalued given its rapid earnings expansion, strong financials, and massive growth runway in web and TV ads. The company's relentless automation, high-margin ad business, and recent divestiture of its gaming segment fuel exceptional profitability and free cash flow.
Recently, Zacks.com users have been paying close attention to AppLovin (APP). This makes it worthwhile to examine what the stock has in store.
Investors interested in Technology Services stocks are likely familiar with Kyndryl Holdings, Inc. (KD) and AppLovin (APP). But which of these two companies is the best option for those looking for undervalued stocks?
In the most recent trading session, AppLovin (APP) closed at $352.74, indicating a +2.32% shift from the previous trading day.
If you're seeking the best annual returns in the world, you need to take strategic risks. There is no other way; right perception and fearlessness lead to alpha. I consider AppLovin Corporation stock as likely to deliver a 30-40% two-year compound annual growth rate in a bull case. The risks related to regulatory concerns are minimal in reality. If you can look past this, APP is a an elite-growth stock at a reasonable price.
APP surges 46.5% as its pivot into CTV, web and e-commerce ads positions it for omnichannel growth and market expansion.
APP, INTU, MNDY, CRDO and GFI are five growth stocks that have surged in the past three months and look poised to extend gains in July.
AppLovin's elite 80%+ gross margin level should not be underestimated because it provides the company with enormous room to reinvest in R&D and marketing. AppLovin demonstrates much stronger revenue growth and wider profitability metrics than its closest peers. My DCF model suggests a fair share price of $434.
AppLovin Corporation APP has soared 47% over the past three months, outpacing the industry's 38% rally and leaving major players like Alphabet GOOGL and Meta Platforms META behind, with gains of 22% and 39%, respectively.
APP and DUOL leverage AI-driven platforms to fuel rapid revenue growth and offer strong short-term price upside potential.