Workflow
Where Will AppLovin Stock Be in 1 Year?
APPApplovin(APP) The Motley Fool·2025-04-03 08:25

Company Performance - AppLovin's stock has surged by more than 293% over the last 12 months, despite a recent pullback of nearly 50% from its recent highs [2][3] - Over a two-year period, AppLovin's stock has skyrocketed by more than 1,700%, increasing from around 15/sharetoover15/share to over 270/share [3] - The company's revenue has grown from 2.8billiontomorethan2.8 billion to more than 4.7 billion over the last three years [5] Industry Trends - AppLovin's business model focuses on connecting developers, advertisers, and organizations through programmatic, AI-powered advertising, which is a rapidly expanding field [3][4] - There is a significant shift in advertising dollars from traditional media to digital platforms, driven by increased consumer engagement with streaming services, online shopping, and mobile apps [4] Future Outlook - Analysts expect AppLovin to generate $5.7 billion in revenue in 2025, representing a 21% year-over-year growth, which is a slowdown compared to the 44% growth seen in the last year [6] - Concerns have been raised regarding allegations from short-selling companies that AppLovin's software may violate app store terms by improperly collecting information [7] - While the overarching trends in digital advertising, streaming TV, and AI technology remain positive, there are questions about whether AppLovin can sustain high revenue growth expectations [8][9]