Core Insights - Kyndryl Holdings, Inc. (KD) is currently viewed as a stronger investment option compared to AppLovin (APP) for those seeking undervalued stocks [1][3][7] Valuation Metrics - KD has a Zacks Rank of 1 (Strong Buy), indicating a stronger earnings outlook compared to APP, which has a Zacks Rank of 3 (Hold) [3] - The forward P/E ratio for KD is 19.69, significantly lower than APP's forward P/E of 42.03, suggesting that KD is more attractively priced [5] - KD's PEG ratio stands at 0.79, while APP's PEG ratio is 2.10, indicating that KD is expected to grow earnings at a more favorable rate relative to its price [5] - KD has a P/B ratio of 7.49, compared to APP's P/B of 207.42, further highlighting KD's relative valuation advantage [6] - Based on these metrics, KD has earned a Value grade of A, while APP has a Value grade of D, reinforcing KD's position as the superior value option [6]

Core Viewpoint - AppLovin (NASDAQ: APP) presents a relatively better investment opportunity compared to other AI stocks, despite being slightly overvalued currently [1][3]. Group 1: Financial Performance and Valuation - The stock price of AppLovin may be above the 50-week moving average, but the 14-week Relative Strength Index (RSI) is only 53.5, indicating potential for growth [1]. - Normalized earnings growth rates could reach 70-80% for FY2025 and 40-50% for FY2026, suggesting a reasonable valuation [1]. - The projected annual revenue growth rate for the next few years is expected to be 20-25%, indicating strong and stable performance [1]. - A conservative estimate suggests a rolling 12-month price-to-earnings (P/E) ratio of around 42.5, which could lead to a stock price of $510 if normalized earnings reach $12, representing a potential upside of 45% from the current price of $350 [3]. Group 2: Cash Flow and Business Model - AppLovin's revenue model includes a significant portion of recurring revenue based on usage, leading to stable cash flows and attracting long-term investment [3][4]. - The company enjoys a high gross margin of nearly 80% and low capital expenditures, which supports its cash flow [4]. - The leverage-free cash flow profit margin stands at 37%, indicating strong financial health [4]. Group 3: Competitive Landscape and Risks - AppLovin faces competition from major players like Meta and Google, which have enhanced their advertising platforms [5]. - Regulatory risks related to privacy and data policies, such as the General Data Protection Regulation (GDPR), could impact data targeting efficiency [4]. - The company has been accused of data misuse and deceptive advertising practices, necessitating strict adherence to ethical standards by management to maintain market sentiment [4]. Group 4: Market Sentiment and Investment Horizon - Current market sentiment towards AppLovin is positive, and the valuation is not excessively high, making it an attractive investment [5][6]. - The investment in AppLovin may require a longer holding period of three to five years to achieve sustainable returns of 25% or more [6]. - The focus should be on monitoring potential downside risks and actual growth in earnings reports to gauge market sentiment shifts [5].

Group 1: S&P 500 Inclusion Criteria - Inclusion in the S&P 500 is significant for companies, often leading to stock price increases due to demand from funds that replicate the index [1] - Companies must be U.S.-domiciled, have a plurality of assets in the U.S., and trade on a major U.S. exchange to qualify for inclusion [2] - A company must be GAAP profitable in the prior quarter and over the last 12 months to be considered for entry [2] Group 2: Datadog's Inclusion - Datadog has recently been added to the S&P 500, prompting speculation about which companies might be next [3] Group 3: Robinhood Markets - Robinhood has a market cap exceeding $80 billion and is profitable, generating $1.95 billion in net income for 2024 and $336 million in Q1 2025 [5][6] - The company experienced a 50% year-over-year revenue increase in Q1, reaching $927 million, driven by new product introductions and client acquisition strategies [6] - Robinhood is expanding its services with AI tools and a banking service, and its acquisition of Bitstamp for $200 million enhances its offerings [7][8] Group 4: AppLovin - AppLovin, with a market cap over $115 billion, is the largest U.S. company not currently in the S&P 500, and it generated nearly $1.6 billion in net income last year [9] - The company reported a 40% year-over-year revenue increase to $1.48 billion last quarter, with advertising revenue soaring 70% to $1.16 billion [11] - AppLovin's growth is driven by its AI-powered Axon-2 adtech solution, and it anticipates significant growth in its mobile video gaming segment [12][13] Group 5: Cheniere Energy - Cheniere Energy, with a market cap over $50 billion, is profitable and benefits from strong demand for liquefied natural gas (LNG) [14][15] - The LNG market is projected to grow by 60% by 2040, and Cheniere is expanding its export capabilities to capitalize on this growth [15] - Approximately 95% of Cheniere's volumes are contracted until the mid-2030s, providing strong visibility into future cash flows [16]

Core Insights - Invictus Origin, founded by Oliver Rodzianko in May 2025, aims to deliver high annual returns through innovative portfolio strategies, particularly the High-Alpha Black Swan Portfolio, designed to outperform major indices like the Nasdaq-100 [1] - The Invictus Hydra Portfolio maintains approximately 20% in dynamic cash reserves, allowing for strategic value investing during market disruptions [1] - Oliver Rodzianko has extensive experience as a macro-focused investment analyst, specializing in public equities and sectors such as technology, semiconductors, artificial intelligence, and energy [1] - The company emphasizes disciplined capital stewardship and resilience, supported by a family office structure aimed at lower-volatility capital preservation [1] Company Strategy - The flagship High-Alpha Black Swan Portfolio is strategically designed to significantly outperform leading indices [1] - The portfolio's dynamic cash reserves are a unique feature that provides growth opportunities during market downturns [1] - The investment process integrates U.S. market specialization with a comprehensive understanding of international markets [1] Leadership and Expertise - Oliver Rodzianko has built a strong reputation through contributions to platforms like Seeking Alpha, TipRanks, and GuruFocus, providing actionable insights to sophisticated investors [1] - The company collaborates with a team of top-tier editors to deliver high-quality content to its audience [1]

Market Capitalization Changes - The market capitalization of major global technology and internet companies has shown varied changes as of July 9, 2025, with notable increases in companies like Tesla, which rose by 1.32% to reach $959.2 billion, and Alibaba, which increased by 1.62% to $257.6 billion [3][4][5]. - Companies such as Netflix and Shopify experienced declines, with Netflix decreasing by 1.11% to $548.8 billion and Shopify dropping by 3.58% to $619.1 billion [3][4]. Notable Performers - AMD saw a significant increase of 2.24%, bringing its market cap to $223.4 billion, while Intel had a remarkable rise of 7.23%, reaching $102.8 billion [5][6]. - Other companies with positive performance include Adobe, which increased by 1.41% to $162.1 billion, and ASML, which rose by 1.15% to $312.2 billion [3][4]. Decliners - Companies like Robinhood and Sea Limited faced declines, with Robinhood decreasing by 2.34% to $824 million and Sea Limited dropping by 1.32% to $894 million [6][7]. - FICO experienced a significant drop of 8.91%, bringing its market cap down to $455 million [7]. Overall Trends - The overall trend indicates a mixed performance across the technology sector, with some companies gaining market value while others are experiencing losses [3][4][5][6].

Core Insights - AppLovin Corporation (APP) is transitioning from a mobile-first advertising platform to a diversified digital advertising powerhouse, focusing on high-growth areas like web advertising, e-commerce, and connected TV (CTV) [1][8] - The acquisition of Wurl enhances AppLovin's capabilities in CTV and digital commerce, allowing the company to leverage its AI-driven AXON monetization engine beyond mobile apps [1][2] Market Dynamics - The CTV advertising market is experiencing significant growth due to a shift in consumer viewing habits from traditional TV to streaming platforms, which strengthens AppLovin's targeted advertising capabilities [2] - By integrating e-commerce, AppLovin can measure ad performance in terms of actual conversions, appealing to performance-focused advertisers [2] Competitive Landscape - AppLovin faces competition from The Trade Desk (TTD) and Roku, both of which are enhancing their CTV capabilities and targeting accuracy through strategic partnerships and technology investments [4][5] - The Trade Desk is well-positioned for data-driven ad targeting, while Roku leverages its proprietary operating system for deep targeting and control over ad inventory [4][5] Strategic Outlook - AppLovin's shift into CTV and commerce presents both opportunities and challenges, with success hinging on the seamless integration of Wurl's infrastructure and differentiation from established competitors [6] - The company aims to transform its narrative from a mobile ad company to a major player in omnichannel advertising [6] Financial Performance - AppLovin's stock has increased by 46.5% over the past three months, outperforming the industry's growth of 42.7% [7][8] - The company trades at a forward price-to-earnings ratio of 33.48, significantly higher than the industry's 23.29, indicating a premium valuation [9]

Market Overview - Wall Street experienced a successful June, with the Dow, S&P 500, and Nasdaq Composite increasing by 4%, 5%, and 6% respectively, driven by optimism around trade deals, a ceasefire in the Middle East, and anticipated interest rate cuts in the latter half of 2025 [1][2] Economic Indicators - Strong economic data supports continued market momentum, with ISM manufacturing and services PMI data for June exceeding expectations and factory orders rebounding in May after a contraction in April [2] - Job additions in June surpassed consensus estimates, reducing recession fears, while the unemployment rate decreased to 4.1% from 4.2% in May [3] Growth Stock Recommendations - Five growth stocks are recommended for July, focusing on those with aggressive earnings or revenue growth potential: - AppLovin Corp. (APP) - Intuit Inc. (INTU) - monday.com Ltd. (MNDY) - Credo Technology Group Holding Ltd. (CRDO) - Gold Fields Ltd. (GFI) All selected stocks have a Zacks Rank of 1 (Strong Buy) and a Growth Score of A [4][8] Company Insights AppLovin Corp. (APP) - AppLovin provides a software platform for mobile app developers, enhancing marketing and monetization efforts [7] - The company reported a revenue growth rate of 16% and an earnings growth rate of 85.2% for the current year, with a recent 0.4% improvement in earnings estimates [10] Intuit Inc. (INTU) - Intuit benefits from steady revenues across its Online Ecosystem and Desktop segments, with strong performance in its Online Services driven by Mailchimp and payroll solutions [11] - The company has an expected revenue growth rate of 11.7% and an earnings growth rate of 13.7% for the next year, with a 4.6% increase in earnings estimates over the last 60 days [14] monday.com Ltd. (MNDY) - monday.com develops cloud-based software applications for work management, with an expected revenue growth rate of 25.6% and an earnings growth rate of 8.3% for the current year [16] Credo Technology Group Holding Ltd. (CRDO) - Credo Technology specializes in high-performance connectivity solutions for various markets, including AI and high-performance computing [17] - The company anticipates a revenue growth rate of 85.8% and an earnings growth rate exceeding 100% for the current year, with a significant 37% increase in earnings estimates recently [19] Gold Fields Ltd. (GFI) - Gold Fields operates as a gold producer with reserves in multiple countries and has an expected revenue growth rate of 71% and an earnings growth rate of 93.9% for the current year [21]

Investment Rating - The industry investment rating is "Strongly Outperform the Market," indicating an expected industry index increase of over 5% in the next six months [32]. Core Insights - Oracle announced a $30 billion order and plans to expand data centers in the U.S., with multi-cloud database revenue growing at over 100% [4][7]. - CoreWeave received the first batch of NVIDIA GB300 servers, significantly enhancing AI processing capabilities and efficiency [8]. - Figma is preparing for a major IPO, projecting $749 million in revenue for 2024, with a focus on integrating AI into its design platform [9][13]. - The AI sector is experiencing a new technology cycle driven by increased computational power, model iteration, and accelerated commercialization [4]. - ByteDance's Doubao launched a new "In-Depth Research" feature, enhancing its AI capabilities for complex task processing [22][26]. Summary by Sections Oracle - Oracle's CEO stated a strong start to FY26, with multi-cloud database revenue growing over 100% and a significant contract with OpenAI expected to contribute over $30 billion annually starting FY28 [4][7]. CoreWeave - CoreWeave announced the receipt of NVIDIA's latest GB300 servers, which enhance AI model output efficiency by up to 50 times, marking a significant advancement in AI cloud services [8]. Figma - Figma aims for a $1.5 billion IPO, with 2024 revenue projected at $749 million, reflecting a 48% year-over-year growth. The platform is embedding AI to improve design efficiency [9][13]. AI Dynamics - The AI industry is witnessing a robust cycle characterized by high demand for computational power and rapid advancements in AI applications, with major companies like Oracle and CoreWeave leading the charge [4]. ByteDance - ByteDance's Doubao introduced the "In-Depth Research" feature, which allows users to process complex tasks and generate structured reports, indicating a shift towards deeper AI application capabilities [22][26].

Core Insights - AppLovin faced investor backlash primarily due to missed opportunities rather than its actual performance, including a failure to be included in a top stock index and a critical report from a short-seller [1][6][10] Group 1: Index Rebalancing - AppLovin was speculated to be a candidate for inclusion in the S&P 500 index during the quarterly rebalancing, as noted by analysts from Bank of America [4][5] - The S&P Dow Jones Indices ultimately decided not to change the composition of the S&P 500 index this time, disappointing investors [2][5] Group 2: Short-Seller Report - Culper Research published a detailed 30-page report criticizing AppLovin's business practices, particularly its interest in acquiring TikTok's non-Chinese operations [7] - The report raised concerns about a significant shareholder, Hao Tang, suggesting he has ties to the Chinese government, which could pose national security risks [8] - AppLovin has not publicly addressed the allegations made by Culper Research, which may negatively impact investor sentiment if left unaddressed [10]

Core Insights - AppLovin (NASDAQ: APP) has shown impressive stock performance, leading to significant returns for investors [1] Company Overview - AppLovin is a technology company that specializes in mobile app marketing and monetization, contributing to its strong market position [1] Financial Performance - The stock has delivered substantial returns since the initial investment, indicating robust financial health and growth potential [1] Investment Interest - There is a growing interest in equity research and analysis of public companies, with a focus on identifying key growth drivers in various industries [1]