Momentum investing is all about the idea of following a stock's recent trend, which can be in either direction. In the 'long' context, investors will essentially be "buying high, but hoping to sell even higher." And for investors following this methodology, taking advantage of trends in a stock's price is key; once a stock establishes a course, it is more than likely to continue moving in that direction. The goal is that once a stock heads down a fixed path, it will lead to timely and profitable trades.Whil ...

AppLovin (APP -0.37%) stock is up over 700% year to date in 2024, attracting many investors to the conversation.*Stock prices used were the afternoon prices of Nov. 25, 2024. The video was published on Nov. 27, 2024. ...

AppLovin (APP -2.79%) stock is soaring on its growing prospects in gaming while the company readies expansion into e-commerce.*Stock prices used were the afternoon prices of Nov. 24, 2024. The video was published on Nov. 26, 2024. ...

For Immediate ReleasesChicago, IL – November 27, 2024 – Zacks.com announces the list of stocks and featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include including AppLovin Corp. (APP) , Cadence Design Systems, Inc. (CDNS) and Workday, Inc. (WDAY) .Here are highlights from Wednesday’s Analyst Blog:AppLovin Stock Surges +289% YTD: How You Should Play ItAppLovin Corp. ...

AppLovin Corporation (APP) stock has shown an outstanding upsurge over the past six months. The stock has skyrocketed 289%, outperforming the 40.5% rally of the industry and the 12.8% rise of the Zacks S&P 500 composite.Six Months' Price Performance Image Source: Zacks Investment Research APP’s performance is significantly stronger than that of its competitors, Cadence Design Systems, Inc. (CDNS) and Workday, Inc. (WDAY) . CDNS and WDAY have risen 6.2% and 21.2%, respectively, over the same period.As of the ...

Investment Rating - The report maintains a "Buy" rating for AppLovin (APP.US) with a target price raised to $394, indicating a potential upside of 23% from the current price of $321.19 [1][21]. Core Views - AppLovin's stock has increased over 700% year-to-date, making it one of the highest-performing stocks in the U.S. market. The company is set to be included in the Nasdaq 100 index on November 18, 2024, which is expected to enhance its liquidity and visibility [1]. - The report highlights the company's strong Q3 2024 performance and the potential for a revaluation of its stock as its brand awareness increases, which could lower customer acquisition costs and support future business expansion [1]. - The report emphasizes AppLovin's leading position in the mobile gaming advertising sector, supported by a comprehensive product ecosystem that includes AppDiscovery, MAX, and Adjust, which create synergistic effects [1]. Summary by Sections Financial Performance - For FY24E, AppLovin is projected to achieve revenues of $2,817 million, with an adjusted EBITDA of $1,063 million, reflecting a significant growth trajectory [5][7]. - The adjusted EBITDA margin for Q3 2024 reached 78%, and the overall free cash flow to adjusted EBITDA ratio was 76%, indicating strong profitability and cash generation capabilities [1]. Business Growth Drivers - The introduction of the AI advertising engine AXON 2.0 has led to a 66% year-over-year growth in advertising revenue, with a 17% quarter-over-quarter acceleration [1]. - The company is expanding into the e-commerce sector, which is expected to significantly increase its market potential. Initial tests in this area have shown promising results, comparable to social customer acquisition channels [1]. Valuation Metrics - The report raises the valuation of AppLovin's advertising business to 45x 2025E EV/EBITDA, aligning it with the average valuation of large advertising platforms and AI concept stocks [1]. - The projected revenue growth rates for the next few years are robust, with expected increases of 39.7% in FY24E and 19.3% in FY25E [5][7].

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Core Viewpoint - The Trade Desk has experienced significant revenue growth and is projected to continue growing at over 20% annually, while AppLovin is rapidly gaining market capitalization and attention in the adtech space, with a focus on its software business and expansion into new sectors [1][4][13]. Company Overview - The Trade Desk went public in 2016 and has seen its stock price increase over 4,000% since then, indicating strong investor interest and a successful business model [1][3]. - AppLovin's market capitalization is approaching $100 billion, showcasing its rapid growth compared to The Trade Desk, which took eight years to reach a market cap of over $60 billion [4]. Business Model - The Trade Desk partners with advertisers to place ads through real-time auctions, targeting specific audience demographics based on publisher data [2]. - AppLovin operates a dual business model, with a significant focus on mobile app development and a growing software segment that utilizes AI to optimize ad placements [8][9]. Revenue Growth - AppLovin's software revenue grew by 59% year-over-year in the same quarter it reported a 2% decline in overall revenue, highlighting the strength of its software business [9]. - Following the launch of Axon 2.0, AppLovin's software revenue growth accelerated, with year-over-year growth rates reaching as high as 91% [10]. Profitability - AppLovin has generated $1.7 billion in free cash flow over the last 12 months, reflecting a profit margin of around 40%, which is exceptional in the industry [11]. Future Prospects - AppLovin is exploring expansion into the e-commerce app sector, with initial results being promising, and management believes it can sustain over 20% annual revenue growth while maintaining profit margins [12][13].

Core Viewpoint - Growth investors are increasingly focused on identifying stocks with above-average financial growth, and AppLovin (APP) is highlighted as a strong candidate due to its favorable growth metrics and Zacks Rank [2][9]. Earnings Growth - AppLovin has a historical EPS growth rate of 229.4%, with projected EPS growth of 314.7% for the current year, significantly outperforming the industry average of 27.8% [4]. Asset Utilization Ratio - The company's asset utilization ratio stands at 0.8, indicating that AppLovin generates $0.8 in sales for every dollar in assets, which is higher than the industry average of 0.61, showcasing better efficiency [5]. Sales Growth - AppLovin's sales are expected to grow by 39.9% this year, contrasting sharply with the industry average of 0%, indicating strong sales growth potential [6]. Earnings Estimate Revisions - There has been a positive trend in earnings estimate revisions for AppLovin, with the Zacks Consensus Estimate for the current year increasing by 17.4% over the past month, suggesting favorable market sentiment [7][8]. Overall Assessment - The combination of a Growth Score of A and a Zacks Rank 1 positions AppLovin as a potential outperformer and a solid choice for growth investors [8][9].

I have recommended this stock three times this year. My first recommendation in February is up 364%, my second is up 225%, and my third is up 113%. AppLovin (NASDAQ: APP ) is oneI have been a Merchant Seaman that has traveled the world for over 30 years. Within the last 15 years, I developed a very intense interest in investing. I learned a lot of what I know about investing from The MF. Also because I have a engineering background, I often tend to gravitate to Tech stocksAnalyst’s Disclosure: I/we have no ...