AppLovin Corp (NASDAQ:APP) has earned a repeat Buy rating from analysts at Bank of America who believe investors will “soon connect the dots” on the mobile technology company's long-term growth story. The bullish recommendation comes after a meeting between the analysts at AppLovin's CEO in New York City.
Tech stock AppLovin (APP 8.27%) hit a 52-week high of $525.15 on Feb. 13. It's staggering just how quickly things have unraveled for this once red-hot growth stock.
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I'm upgrading AppLovin stock to "Buy" today thanks to reasonable valuation and strong expansion prospects despite its heavy dip. Q4 results showed significant growth: $1.37B sales (+44% YoY), $848M adjusted EBITDA (+78% YoY), and $2.1B FCF. Strategic pivot to the advertising platform and potential gaming unit sale to Tripledot Studios could drive higher margins and growth.
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Short-seller firm Fuzzy Panda Research sent a letter to the S&P 500 Index Committee this week, urging the group to keep the stock out of the benchmark index. Fuzzy Panda has accused AppLovin of using fraudulent tactics to bolster its online ad business.
The changes will take effect after the close on March 21.
It was an unusual up-and-down ride for shareholders of app monetization company AppLovin (APP -8.30%) last month. Midway through February, AppLovin stock was up by as much as 38%.
Artificial intelligence-powered ad-tech company AppLovin (APP -1.93%) had a dream year in 2024. Its stock exploded roughly 713%, which was exceptional performance even for a stock in the popular AI trade.
AppLovin Corporation is transitioning to a pure-play advertising platform, divesting its lower-margin Apps business for $900 million to focus on higher-growth opportunities. The company plans to expand beyond gaming, targeting the broader e-commerce market, which presents significant growth potential with over 10 million businesses advertising online. APP's advertising segment has shown impressive growth, with revenues increasing from $207 million in FY20 to $3,224 million in FY24, validating its strategic shift.
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Shares of AppLovin (APP 7.79%), the volatile adtech stock, gained today after the company upgraded its share buyback program in a filing after hours on Friday.