Meet the Blockbuster Stock Joining the S&P 500. It Soared 541% Over the Past Year, and It's Still a Buy Right Now, According to Wall Street

Core Insights - AppLovin is set to join the S&P 500 on September 22, 2025, marking it as one of only 10 companies to be added this year [2] - The stock has experienced a remarkable 541% increase over the past year and a 652% gain since its IPO in early 2021, significantly outperforming the S&P 500's 55% increase during the same period [2] - The company's revenue has surged by 510% and net income has skyrocketed by 3,490% in less than five years, indicating strong fundamentals [2] Company Performance - In Q2, AppLovin reported revenue of $1.26 billion, a 77% year-over-year increase, and earnings per share (EPS) of $2.39, up 169% [7] - The results exceeded Wall Street's expectations, with analysts predicting revenue of $1.22 billion and EPS of $1.96 [8] - The company forecasts Q3 revenue of $1.33 billion, surpassing analysts' expectations of $1.31 billion [8] Financial Metrics - Operating cash flow reached $772 million, a 70% increase, while free cash flow was $768 million, up 72% [9] - AppLovin's net revenue per installation increased by 70%, and the number of installations grew by 8% [7] Market Sentiment - Wall Street analysts remain bullish on AppLovin, with 76% rating it a buy or strong buy [10] - Analyst Rob Sanderson from Loop Capital has a buy rating with a price target of $650, suggesting a potential upside of 33% [11] - The stock is currently priced at 36 times next year's expected earnings and 23 times next year's sales, which is considered reasonable given its growth trajectory [12] Industry Position - AppLovin operates in the adtech sector, providing a SaaS platform that aids app developers in marketing and monetizing their applications [5] - The company is expanding its offerings to include new adtech solutions tailored for e-commerce platforms and leveraging AI technology with its Axon 2.0 platform [6]