Company Overview - AppLovin operates a mobile app marketing platform that provides tools for developers to improve monetization and marketing of their content, both in the US and internationally [1] - The company offers e-commerce advertising services that match advertiser demand with publisher supply through auctions, along with bidding software to optimize advertising inventory value [2] - AppLovin's 'Adjust' platform provides analytics, visibility, and insights to help marketers grow their apps from early stage to maturity [2] Business Strategy and Diversification - Historically driven by mobile game advertising, AppLovin is diversifying its customer base, with a newer e-commerce beta program that includes several hundred advertisers, including beauty and cosmetics companies [3] - The company's growth opportunity lies in scaling its advertising products to non-gaming advertisers, leveraging its expertise in mobile game advertising [5] Financial Performance - In Q3, AppLovin reported earnings of $1.25 per share, a 317% increase year-over-year, with sales surging 39% to $1.2 billion [7] - The company guided higher for Q4, forecasting revenue of $1.25 billion, exceeding analyst expectations of $1.18 billion [7] - AppLovin has surpassed earnings estimates in the past six quarters, with a trailing four-quarter average earnings surprise of 26.2% [8] - Analysts have raised full-year EPS estimates for 2025 by 6.25% to $6.12 per share, representing a potential growth rate of 50.6% year-over-year, with revenues expected to climb 23.5% to $5.68 billion [8] Analyst Sentiment and Market Performance - Analysts remain bullish on AppLovin, with UBS highlighting positive initial results from the e-commerce beta program [4] - Oppenheimer reiterated an 'outperform' rating, emphasizing that AppLovin's total addressable market could double in the short term if growth opportunities are seized [6] - AppLovin's stock delivered a 712% return in 2024 and continues to show relative strength, breaking out to the upside with increasing volume and buying pressure [9][12] - Empirical research shows a strong correlation between near-term stock movements and earnings estimate revisions, with AppLovin benefiting from positive revisions [13] Growth Potential and Investment Appeal - AppLovin is backed by a leading industry group and a history of earnings beats, making it a compelling investment with durable fundamentals and an appealing technical trend [14] - The company ranks highly in the Zacks Growth Style Category, indicating potential for outperformance based on strong sales and earnings growth [14] - Recent positive earnings estimate revisions are expected to create a 'floor' for the stock, reducing the likelihood of sudden downside moves [15]

Wall Street bulls held their ground to start 2025. Last week, investors celebrated a slightly cool inflation reading that increased the likelihood of multiple rate cuts this year. On top of that, JPMorgan, Taiwan Semiconductor, and others kicked off fourth quarter earnings season on a high note.See the Zacks Earnings Calendar to stay ahead of market-making news.Investors and business leaders are also cheering on the pro-growth policies of the second Trump administration.Given this broadly bullish backdrop, ...

Software stocks carried the tech torch over much of the second half of 2024, but the iShares Expanded Tech-Software ETF ( IGV ) has lost steam lately amid a steep rise in market interest rates. Some up-and-coming software companiesFreelance Financial Writer | Investments | Markets | Personal Finance | RetirementI create written content used in various formats including articles, blogs, emails, and social media for financial advisors and investment firms in a cost-efficient way. My passion is putting a narra ...

Uttam is a growth-oriented investment analyst whose equity research primarily focuses on the technology sector. Semiconductors, Artificial Intelligence and Cloud software are some of the key sectors that are regularly researched and published by him. His research also focuses on other areas such as MedTech, Defense Tech, and Renewable Energy. In addition, Uttam also authors The Pragmatic Optimist Newsletter along with his wife, Amrita Roy, who is also an author on the newsletter as well as on this platform. ...

AppLovin (NASDAQ: APP ) was one of the best performers of 2024, surging over 700%. Its meteoric rise was driven by the company's ability to crack a technological hurdle, unlocking a completely new advertising market in mobile games.I aim to invest in companies with perfect qualitative attributes, buy them at an attractive price based on fundamentals, and hold them forever. I hope to publish articles covering such companies approximately 3 times per week, with extensive quarterly follow-ups and constant upda ...

Wall Street ended lower as stronger-than-expected jobs data diminished expectations for further interest rate cuts by the Federal Reserve. Last week, all three major indices — the Nasdaq Composite, the S&P 500 and the Dow Jones Industrial Average — decreased by 3.54%, 2.5% and 1.8%, respectively.The Labor Department reported on Friday, January 11, 2025, that nonfarm payrolls in December soared by 256,00 against 212,00 in November and came above the Dow Jones forecast of 155,000 jobs. The unemployment rate a ...

AppLovin Corp. NASDAQ: APPstock jumped 166% after a strong earnings report in November. That made APP stock the top performer among stocks in the NASDAQ 100 in 2024. But after that spectacular surge to close out 2024, the stock is down nearly 4% in the last month, as short interest jumped over 3%.  AppLovin TodayAPPAppLovin$318.48 -10.72 (-3.26%) 52-Week Range$39.43▼$417.64P/E Ratio96.51Price Target$337.71Add to WatchlistGet AppLovin alerts:However, AppLovin is part of the still-emerging AI story, which is ...

Growth stocks are attractive to many investors, as above-average financial growth helps these stocks easily grab the market's attention and produce exceptional returns. But finding a great growth stock is not easy at all.By their very nature, these stocks carry above-average risk and volatility. Moreover, if a company's growth story is over or nearing its end, betting on it could lead to significant loss.However, the task of finding cutting-edge growth stocks is made easy with the help of the Zacks Growth S ...

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. Do they really matter, though?Let's take a look at what these Wall Street heavyweights have to say about AppLovin (APP) before we discuss the reliability of brokerage recommendations and how to use them to your advantage.AppLovin currently has an average ...

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.Let's look at three stocks that could continue to benefit from a boom in AI software.1. Palantir TechnologiesPerhaps the stock investors are most excited about when it comes to AI is Palantir Technologies (PLTR -2.52%). While a number of big ...