AppLovin's strategic partnership with Google Cloud has significantly improved its unit economics, benefiting both the company and its customers, leading to strong performance in 2024. The company's expansion into e-commerce is expected to contribute ~10% of total ad dollars it earns, enhancing ad platform economics and driving future growth. Management's positive outlook on e-commerce and robust ad performance signal potential revenue growth of 27% y/y in CY25, with adj. EBITDA margins reaching 56-57%.
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AppLovin's integrated platform revolutionized mobile game advertising, driving a 700% stock surge in 2024 and unlocking a multibillion-dollar market. The company excels in inventory, sell-side, demand-side, and analytics, akin to a 'Google' for mobile games, with high margins and operational leverage. APP aims for 20%-30% annual revenue growth, with e-commerce ads poised to become a significant revenue driver by 2025.
AppLovin (APP) has an impressive earnings surprise history and currently possesses the right combination of the two key ingredients for a likely beat in its next quarterly report.
AppLovin (APP) closed the most recent trading day at $315.68, moving -0.88% from the previous trading session.
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Shares of app monetization company AppLovin (APP -5.44%) rose by 712.6% in 2024, according to data provided by S&P Global Market Intelligence. Moves of that magnitude aren't unprecedented, but they're more common among small companies.
AppLovin (APP) possesses solid growth attributes, which could help it handily outperform the market.
The recommendations of Wall Street analysts are often relied on by investors when deciding whether to buy, sell, or hold a stock. Media reports about these brokerage-firm-employed (or sell-side) analysts changing their ratings often affect a stock's price.
The build-out of artificial intelligence (AI) has been the first big wave for AI, leading to huge surges in revenue for companies like Nvidia. However, the second wave of AI could come from the software space, as organizations begin to implement AI into their businesses.