AppLovin: Ecommerce Traction Points Towards A Long Growth Runway (Rating Upgrade)

Group 1 - AppLovin's Q1 results were strong, alleviating concerns about tariffs impacting advertisers [1] - The company's performance is better than headline numbers indicate, with pedestrian growth and margins [1] - Narweena, an asset manager, focuses on identifying market dislocations and businesses with long-term growth opportunities [1] Group 2 - Narweena's research emphasizes company and industry fundamentals to uncover unique insights [1] - The firm has a high risk appetite and targets deeply undervalued stocks, particularly in smaller cap markets [1] - An aging population and low growth are expected to create new investment opportunities, contrasting with past trends [1] Group 3 - Many industries may face stagnation or decline, potentially improving business performance due to reduced competition [1] - Other businesses might experience rising costs and diseconomies of scale [1] - The economy is increasingly dominated by asset-light businesses, reducing the need for infrastructure investments [1] Group 4 - A large pool of capital is pursuing limited investment opportunities, leading to rising asset prices and compressed risk premia [1] - Richard Durant holds degrees in engineering and finance, along with an MBA, and has passed the CFA exams [1]