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Now you can get access to the latest and highest-quality analysis of recent Wall Street buying and selling ideas with just one subscription to Beyond the Wall Investing ! There is a free trial and a special discount of 10% for you. Join us today! AppLovin Corporation (NASDAQ: APP ) is a technology company that offers an online platform where advertisers can promote and monetize their content around the world. It operates in two main parts, Software Platform and Apps. Their Daniel Sereda is chief investment ...

AppLovin (APP) closed the most recent trading day at $143.81, moving -1.03% from the previous trading session. This change lagged the S&P 500's 0.76% loss on the day. At the same time, the Dow lost 0.75%, and the tech-heavy Nasdaq lost 1.01%.Shares of the mobile app technology company have appreciated by 24.99% over the course of the past month, outperforming the Business Services sector's gain of 3.52% and the S&P 500's gain of 4.31%.The upcoming earnings release of AppLovin will be of great interest to in ...

When deciding whether to buy, sell, or hold a stock, investors often rely on analyst recommendations. Media reports about rating changes by these brokerage-firm-employed (or sell-side) analysts often influence a stock's price, but are they really important?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 brokerage recommendation (ABR) ...

There are still attractively valued tech stocks despite the market's strong performance this year.It's been a strong year for the stock market and with the Federal Reserve beginning to cut rates as part of a normalization cycle, the good times are likely to continue. Tech stocks in particular have helped lead the way, as artificial intelligence (AI) is driving a lot of momentum in the market. Despite the market's strong run, there are still a number of attractively valued tech stocks that look like good inv ...

The AI-powered Adtech leader may just be getting started.AppLovin (APP 1.02%) stock has swept investors off their feet with a spectacular 265% return this year. The mobile advertising technology (adtech) disrupter is benefiting from new artificial intelligence (AI) features integrated across its platform that have added to a strong growth outlook.Following such a big rally in the share price, investors may be wondering if there is more upside ahead or whether this is the one that got away. Here's what you n ...

These stocks are up big, but that doesn't mean that they can't go up even more.Way back in 2016, before most investors were even aware of artificial intelligence (AI), Nvidia (NVDA 1.63%) co-founder Jensen Huang delivered an AI supercomputer to leadership at OpenAI. In 2022, OpenAI released the popular ChatGPT chatbot, sparking a generative AI revolution. And now the tailwinds couldn't be blowing any harder in Nvidia's sails.Returns for Nvidia stock over the past five years have been sensational, with the s ...

The most recent trading session ended with AppLovin (APP) standing at $143.40, reflecting a -0.08% shift from the previouse trading day's closing. The stock trailed the S&P 500, which registered a daily gain of 0.71%. Elsewhere, the Dow saw an upswing of 1.03%, while the tech-heavy Nasdaq appreciated by 0.6%. Shares of the mobile app technology company have appreciated by 66.43% over the course of the past month, outperforming the Business Services sector's gain of 5.54% and the S&P 500's gain of 6.41%. The ...

Economic Environment - Wall Street anticipates further cuts in the Fed's benchmark lending rate, with a 100% probability of a 25-basis point cut in November and a total year-to-date cut of 1% by December [1] - The current Fed fund rate is between 4.75-5%, following a significant cut of 50 basis points in September, marking the first reduction since March 2020 [1] Growth Stocks - Investment in growth stocks is expected to be fruitful, with five highlighted stocks: AppLovin Corp. (APP), Duolingo Inc. (DUOL), Paramount Global (PARAA), Twilio Inc. (TWLO), and Catalent Inc. (CTLT) [2] - Growth investors focus on stocks with aggressive earnings or revenue growth, which are likely to see stock price increases due to reduced production costs from rate cuts [2] AppLovin Corp. (APP) - AppLovin reported a 76% year-over-year revenue increase in 2023 and a 44% year-over-year revenue jump in Q2 2024, alongside a 286% increase in net income [4] - The company has an expected revenue growth rate of 35.2% and earnings growth rate of over 100% for the current year, with positive earnings estimate revisions in the last 60 days [5] Duolingo Inc. (DUOL) - Duolingo operates a mobile learning platform offering courses in 40 languages and has seen an expected revenue growth rate of 38.6% and earnings growth rate of over 100% for the current year [7][8] - Positive earnings estimate revisions have occurred for the current quarter and next year in the last 30 days [8] Paramount Global (PARAA) - Paramount Global operates in media, streaming, and entertainment, with an expected earnings growth rate of over 100% for the current year, despite a negative revenue growth rate [10][12] - The Zacks Consensus Estimate for earnings has improved over the last 60 days [12] Twilio Inc. (TWLO) - Twilio is benefiting from digital transformations and has an expected revenue growth rate of 5.2% and earnings growth rate of 39.2% for the current year [14][15] - The company has seen improvements in earnings estimates over the last 60 days [15] Catalent Inc. (CTLT) - Catalent's impending buyout by Novo Holdings is expected to enhance its business investments, with a projected revenue growth rate of 8.1% and earnings growth rate of over 100% for the current year [17][18] - The company reported nearly 30% growth in non-COVID revenues during the fourth quarter of fiscal 2024 [17]

Investment Rating - The report initiates coverage on AppLovin (APP.US) with a "Buy" rating and a target price of $148, implying a potential upside of 16% [2][3] Core Views - AppLovin is a leading player in the mobile advertising industry with a comprehensive ecosystem, driven by its AI-powered advertising engine AXON 2.0, which has significantly boosted its growth [2] - The company is expanding beyond gaming into e-commerce and connected TV (CTV) advertising, which could further enhance its market potential [2] - AppLovin's software platform business benefits from low marginal costs and high operating leverage, with a 73% adjusted EBITDA margin in 2Q24 [2] Industry Overview - The global in-app advertising (IAA) market is expected to reach $352.7 billion in 2024, accounting for over 40% of digital ad revenue, with a CAGR of 9% from 2024 to 2028 [10] - The in-game advertising (IGA) market is projected to grow to $109.6 billion in 2024, with a CAGR of 9.5% from 2024 to 2028 [10] - Regulatory changes, such as the EU's Digital Markets Act (DMA) and privacy policies like Apple's ATT, are reshaping the mobile advertising landscape, creating opportunities for more flexible and adaptive ad tech companies [12][13] Company Analysis AI-Driven Growth - AppLovin's AI advertising engine, AXON 2.0, has driven a 75% YoY growth in ad revenue in 2Q24, with the company expecting over 20% annual growth in ad revenue in the coming years [2] - The company's AI capabilities are supported by its extensive data and technological expertise, which enhance its competitive advantage [20] Expansion into Non-Gaming Sectors - AppLovin is focusing on e-commerce as a key growth area, with successful tests in e-commerce advertising and plans to scale up investments in this sector [2][32] - The company is also exploring opportunities in CTV advertising through its acquisition of Wurl, aiming to leverage AXON 2.0's capabilities in this space [34] Financial Performance - AppLovin's software platform business has a high adjusted EBITDA margin of 73% in 2Q24, with 81% of incremental revenue converting to adjusted EBITDA [36] - The company's free cash flow to adjusted EBITDA ratio stands at 74%, reflecting strong cash generation capabilities [36] Valuation - The report values AppLovin's software platform business at 20x FY25E EV/EBITDA and its apps business at 5x FY25E EV/EBITDA, resulting in a target price of $148 [41][42] Competitive Landscape - AppLovin's AppDiscovery platform is a leading user acquisition tool in the mobile gaming market, ranking second in Android and first in iOS [22] - MAX, AppLovin's monetization solution, is the largest mediation platform in mobile gaming, with a 2/3 market share [24] - Adjust, the company's attribution platform, ranks second in market share, providing valuable insights for optimizing ad campaigns [26]