Investment Rating - The report maintains a "Buy" rating for AppLovin (APP.US) with a target price of $535, indicating a potential upside of 41% from the current price of $380.32 [4][7]. Core Insights - AppLovin's Q4 2024 revenue reached $1.373 billion, a year-over-year increase of 44.0%, exceeding market expectations by 8.6%. The net profit was $599 million, with a net profit margin increase of 25.6 percentage points to 43.6%. Adjusted EBITDA was $848 million, surpassing market expectations by 10.9%, with an adjusted EBITDA margin improvement of 11.8 percentage points to 61.8% [7][8]. - The company is transitioning to a pure advertising platform by divesting its existing Apps business, expected to generate a total transaction value of $900 million, which is anticipated to significantly enhance profit margins. The company aims to expand its advertiser coverage beyond gaming, leveraging AI to automate ad placements and attributions [7][8]. - E-commerce is projected to contribute significantly this year, with the advertising business growing by 73% year-over-year in Q4 2024. The company expects e-commerce to account for 10% of total revenue by year-end [7][8]. - The target price has been raised to $535 based on strong advertising performance, with revenue forecasts for 2025 and 2026 adjusted to $4.5 billion and $5.6 billion, respectively, and adjusted EBITDA margins projected at 79% and 80% [7][8]. Financial Summary - For FY23, AppLovin's revenue is projected at $3.283 billion, with operating profit of $648 million and adjusted EBITDA of $1.503 billion. By FY27, revenue is expected to reach $8.037 billion, with operating profit of $3.962 billion and adjusted EBITDA of $5.628 billion [3][8]. - The company’s net profit is forecasted to grow from $357 million in FY23 to $3.390 billion in FY27, reflecting a significant increase in profitability over the forecast period [8].

Small deep value individual investor, with a modest private investment portfolio, split approx. 50%-50% between shares and call options. I have a B.Sc. in aeronautical engineering and over 6 years of experience as an engineering consultant in the aerospace sector. The latter statement is not relevant in any way whatsoever to my investment style, but I thought to add it for self-indulgent purposes. I have a contrarian investment style, highly risky, and often dealing with illiquid options. How illiquid? Well ...

Shares of AppLovin Corp APP were climbing in early trading on Thursday, after the company reported upbeat fourth-quarter results.The company reported its quarterly results amid an positive earnings season. Here are some key analyst takeaways.BofA Securities On AppLovinAnalyst Omar Dessouky reaffirmed a Buy rating, while raising the price target from $375 to $580.The magnitude of AppLovin's fourth-quarter beat was "completely unexpected," Dessouky said in a note. eCommerce is estimated to have contributed ar ...

AppLovin Corporation (APP) has seen its stock surge 34% in the past three months. This impressive rise has outpaced the industry's 28% rally.Compared with its competitors in the in-game mobile advertising space, APP’s performance is notably stronger. Alphabet Inc. (GOOGL) has gained 4.5%, and Meta Platforms (META) has returned 25.5% over the same period.Image Source: Zacks Investment ResearchNow, the key question for investors is whether the stock’s growth trajectory justifies a “Buy” at its current level o ...

“The inescapable fact is that the value of an asset, whatever its character, cannot over the long-term grow faster than its earnings do.” – Warren BuffettCorporate earnings are one of the main drivers of stock market activity over time. That’s why earnings expectations and estimates are so important.It’s always a good idea to keep an eye on upcoming earnings releases.Find the latest EPS estimates and surprises on Zacks Earnings Calendar.Zacks receives daily electronic data feeds and printed research reports ...

Shares of digital advertising company AppLovin (APP 24.00%) absolutely skyrocketed on Thursday after the company smashed expectations with its financial report for the fourth quarter of 2024. As of 11 a.m. ET, AppLovin stock was up 31% and had hit an all-time high at over $500 per share.The growth rate just acceleratedOnly founded in 2011, AppLovin now has a market capitalization of over $160 billion as of today. The company managed to generate revenue of $4.7 billion in 2024, which was up 43% from 2023. An ...

Shares of Applovin ripped more than 30% higher Thursday after the company reported a fourth-quarter earnings beat, causing many analysts to lift their price targets.The ad tech company said on its earnings call it was divesting its apps business, as the company aims to move into other verticals for their AI-powered AXON advertising software like fintech, insurance and automotive.Analysts at Wolfe praised the sale of the apps segment, saying the company's financials "gets cleaner at a time when its growth ou ...

The optimism around AppLovin (NASDAQ: APP ) remains massive, and the stock soared by almost 30% yesterday to $492 after the fresh earnings release. This made my previous 'Strong sell' recommendation looking not good at all because the share price was around $300Coming from an IT background, I have dived into the U.S. stock market seven years ago by managing portfolio of my family. Starting managing real money has been challenging for the first time, but long hours of mastering fundamental analysis of public ...

AppLovin Corp (NASDAQ: APP) — a company providing a full suite of solutions for mobile app developers, including marketing, monetization, and analytics — recently posted strong quarterly results. The company reported earnings of $1.73 per share on revenue of $1.37 billion for Q4, surpassing analyst expectations of $1.24 per share on $1.26 billion in revenue. Additionally, its optimistic outlook drove the stock up nearly 30% in after-hours trading.CHONGQING, CHINA - FEBRUARY 9: In this photo illustration, th ...

Financial Data and Key Metrics Changes - Total revenue increased by 44% year-over-year to $1.37 billion, while adjusted EBITDA rose by 78% to $848 million, achieving a 62% adjusted EBITDA margin [21][49]. - Free cash flow for Q4 was $695 million, up 105% year-over-year, with a quarter-over-quarter growth of 28% [22][50]. - The company ended Q4 with $741 million in cash and cash equivalents [23][51]. Business Line Data and Key Metrics Changes - The Advertising business generated $999 million in revenue and $777 million in adjusted EBITDA, achieving a 78% margin [23][51]. - Apps revenue for the quarter was $373 million, a 1% decrease from last year, with $71 million in adjusted EBITDA, representing a 19% margin [26][54]. Market Data and Key Metrics Changes - The company is expanding its focus beyond gaming to serve the entire global advertising economy, with a platform that reaches over 1 billion people daily [10][14]. - The early pilots for ecommerce advertisers showed positive outcomes, indicating a broader market opportunity [12][40]. Company Strategy and Development Direction - The company is transitioning to a pure advertising platform, emphasizing productivity, automation, and building lean teams [19][47]. - An exclusive term sheet has been signed to sell the Apps business for an estimated $900 million, including $500 million in cash [25][53]. - The focus for 2025 includes developing automated tools to allow more businesses to utilize the platform effectively [15][44]. Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the growth potential of the ecommerce segment, anticipating it to contribute materially to revenue in 2025 [84]. - The company aims to leverage AI and automation to enhance operational efficiency and drive growth [65][86]. Other Important Information - The company reported an adjusted EBITDA per employee of approximately $3 million in the Advertising business, with expectations for this metric to rise as processes are refined [19][47]. - The company has repurchased or withheld a total of 25.7 million shares for a total cost of $2.1 billion during the year [28][56]. Q&A Session Summary Question: Insights on ecommerce growth and scaling - Management confirmed that the platform's technology works across various categories, indicating confidence in scaling beyond DTC marketers [62][64]. Question: Model enhancements and their impact on growth - Management noted ongoing improvements in their models contributed to growth, alongside seasonal factors during Q4 [76][80]. Question: Expectations for ecommerce contribution in 2025 - Management remains confident in ecommerce's material contribution to revenue in 2025, though specifics on timing and amount remain uncertain [84][85]. Question: Inventory conversion for ecommerce vs gaming - Management clarified that the same inventory is used for both ecommerce and gaming, with full-screen video ads being the primary format [125]. Question: Take rate dynamics between gaming and ecommerce - Management indicated that as monetization improves, the take rate naturally increases, but they do not optimize for it [131][132].