This AI Stock Could Be the Best Growth Story of the Decade

Core Insights - Wall Street is increasingly recognizing AppLovin as a significant player in the AI sector, alongside traditional chipmakers and cloud giants [1] Group 1: AppLovin's AI Strategy - AppLovin is leveraging AI to enhance digital advertising by integrating advertising technologies, gaming, and data [2] - The Axon 2.0 optimization engine, developed with insights from over 1 billion users, is a key driver for improving mobile ad performance and targeting [4] - Axon 2.0 has achieved a 50% to 60% penetration in the mobile game advertising market since its launch two years ago, indicating strong market acceptance [5] Group 2: E-commerce and Growth Potential - Axon 2.0 is expanding into e-commerce advertising, showing early success in driving conversions in categories like beauty and retail, with a run rate nearing $1 billion in Q1 [6] - Despite its current low penetration, there is significant growth potential for Axon 2.0, especially with the launch of a new app in the Shopify App Store to facilitate merchant connections [7] Group 3: Tools and Automation - The introduction of Axon Ads Manager allows advertisers to manage their activities directly, enhancing automation and workflow efficiency [8] - This tool supports automatically generated ads and integrates with third-party attribution partners, improving visibility into ad performance [9] - A global launch of Axon Ads Manager is planned for the first half of 2026, following a referral-based rollout starting after October 1 [9] Group 4: Market Outlook - AppLovin's non-gaming adtech business is projected to experience significant growth in the coming years, driven by the increasing ad supply on the MAX mediation platform [10]