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Applovin Corp - Class A (APP) Stock

Applovin Corp - Class A Stock Details, Movements and Public Alerts

AppLovin Stock: The AI Advertising Revolution Nobody Saw Coming

AppLovin has emerged as one of the market most spectacular success stories, trading at $413 after a 700% surge in 2024. The mobile advertising company has transformed into an AI powerhouse with 81% EBITDA margins.

  • •
    Core Strengths:AXON AI dominance, 81% EBITDA margins, explosive growth, minimal competition
  • •
    Main Risks:Extreme valuation, regulatory scrutiny, single-product dependency, short-seller concerns
  • •
    Bottom Line:Hypergrowth story with binary outcomes - massive upside or sharp correction

Market Cap

$161.88B

52-Week High

$587.88

-1.00% from high

52-Week Low

$110.90

+424.80% from low

Avg Daily Volume

6,675,507

Fundamentals

Valuation Metrics

P/E Ratio (TTM)

65.83

Above market average

Forward P/E

78.74

Earnings expected to decline

PEG Ratio

2.88

Potentially overvalued

Price to Book

138.70

EV/EBITDA

50.16

EPS (TTM)

$7.27

Price to Sales

28.21

Beta

2.43

More volatile than market

How is APP valued relative to its earnings and growth?
Applovin Corp - Class A trades at a P/E ratio of 65.83, which is above the market average of approximately 20. This premium valuation suggests investors expect above-average growth or the company has competitive advantages justifying the higher multiple. Looking ahead, the forward P/E of 78.74 is higher than the current P/E, indicating analysts expect earnings to decline over the next year. The PEG ratio of 2.88 indicates a premium valuation even accounting for growth.
What is APP's risk profile compared to the market?
With a beta of 2.43, Applovin Corp - Class A is significantly more volatile than the market. For every 10% market move, this stock tends to move 24% in the same direction. Higher beta stocks offer greater potential returns but with increased risk. The price-to-book ratio of 138.70 shows investors value the company above its book value, which often reflects intangible assets or growth prospects.

Performance & Growth

Profit Margin

42.30%

Operating Margin

76.10%

Return on Equity

253.80%

Return on Assets

32.60%

Revenue Growth (YoY)

77.00%

Earnings Growth (YoY)

168.80%

How profitable and efficient is APP's business model?
Applovin Corp - Class A achieves a profit margin of 42.30%, meaning it retains $42.30 from every $100 in revenue after all expenses. This is an impressive margin, indicating strong pricing power and efficient cost management that allows the company to generate substantial profits. The operating margin of 76.10% reveals how efficiently the company runs its core business operations before interest and taxes. With ROE at 253.80% and ROA at 32.60%, the company generates strong returns on invested capital.
What are APP's recent growth trends?
Applovin Corp - Class A's revenue grew by 77.00% year-over-year, representing robust expansion that significantly outpaces typical market growth rates. This strong top-line performance suggests the company is successfully capturing market share or benefiting from favorable industry trends. Earnings increased by 168.80% year-over-year, outpacing revenue growth through improved margins. These growth metrics should be evaluated against SERVICES-COMPUTER PROGRAMMING, DATA PROCESSING, ETC. industry averages for proper context.

Company Size & Market

Shares Outstanding

307.64M

Book Value/Share

$3.45

Asset Type

Common Stock

What is APP's market capitalization and position?
Applovin Corp - Class A has a market capitalization of $161.88B, classifying it as a large-cap stock ($10B-$200B). Large-caps are typically industry leaders with established business models, offering a balance of stability and growth potential. They often provide dividend income and are core holdings in institutional portfolios. With 307.64M shares outstanding, the company's ownership is relatively concentrated. As a major player in the SERVICES-COMPUTER PROGRAMMING, DATA PROCESSING, ETC. industry, it competes with other firms in this sector.
How does APP's price compare to its book value?
Applovin Corp - Class A's book value per share is $3.45, while the current stock price is $582.00, resulting in a price-to-book (P/B) ratio of 168.94. This high P/B ratio indicates significant intangible assets, strong brand value, or high growth expectations. Technology and consumer brand companies often trade at elevated P/B ratios due to intellectual property and competitive advantages not reflected on the balance sheet. As a common stock, this represents equity ownership with voting rights.

Analyst Ratings

Analyst Target Price

$493.19

15.26% downside potential

Analyst Recommendations

Strong Buy

4

Buy

15

Hold

5

Sell

1

Strong Sell

0

How reliable are analyst predictions for APP?
25 analysts cover APP with 76% recommending buy/strong buy ratings. Analyst predictions have mixed reliability - studies show consensus rarely beats market returns consistently. The strong bullish consensus may already be priced in. The consensus target of $493.19 implies -15.3% downside, but targets are often adjusted to follow price moves rather than predict them.
What is the Wall Street consensus on APP?
Current analyst recommendations:4 Strong Buy, 15 Buy, 5 Hold, 1 Sell, 0The bullish tilt suggests optimism about future prospects, though investors should conduct independent research.Remember that analyst opinions often lag price movements and can be influenced by investment banking relationships.

Fundamentals last updated: Sep 1, 2025, 02:11 AM

Technical Indicators

RSI (14-day)

67.58

Neutral

50-Day Moving Average

$306.28

90.02% above MA-50

200-Day Moving Average

$268.29

116.93% above MA-200

MACD Line

25.88

MACD Signal

23.97

MACD Histogram

1.91

Bullish

What does APP's RSI value tell investors?
The RSI (Relative Strength Index) for APP is currently 67.58, indicating the stock is showing bullish momentum (60-70 range). The stock has positive momentum without being extremely overbought. This zone often occurs during healthy uptrends where buyers remain in control. Combined with the price being above the 50-day moving average, this confirms bullish conditions.
How should traders interpret APP's MACD and moving average crossovers?
MACD analysis shows the MACD line at 25.88 above the signal line at 23.97, with histogram at 1.91. This bullish crossover suggests upward momentum is building. The wide histogram confirms strong momentum. The 50-day MA ($306.28) is above the 200-day MA ($268.29), forming a golden cross pattern that typically signals a long-term uptrend. Price is currently above both MAs, confirming strength.

Indicators last updated: Jun 4, 2025, 07:07 AM

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AppLovin (APP) Stock Analysis 2025 - AI-Powered Advertising Phenomenon

AppLovin has emerged as one of the market most spectacular success stories, trading at $413 after a 700% surge in 2024. The mobile advertising company has transformed into an AI powerhouse with 81% EBITDA margins.

Why AppLovin? Understanding the Investment Story

The Accidental AI Unicorn

AppLovin transformation from a sleepy mobile gaming company to Wall Street AI darling represents one of the most unlikely success stories in tech history. Then came AXON 2.0 - an AI-powered advertising engine that changed everything.

AXON magic lies in its ability to predict user behavior with uncanny accuracy. The platform machine learning models analyze billions of data points in real-time, optimizing ad placement, creative selection, and bidding strategies simultaneously.

The Gaming Ecosystem Advantage

While AppLovin is divesting its gaming studios for $400 million, its deep roots in mobile gaming provide irreplaceable competitive advantages. The company operates the plumbing of the $100 billion mobile gaming economy.

Valuation: Priced for Perfection and Beyond

At 82 times trailing earnings and 45 times forward EBITDA, AppLovin trades at valuations typically reserved for unprofitable hypergrowth SaaS companies, not advertising businesses.

Opportunities for 2025 and Beyond

The Self-Serve Revolution

AppLovin planned launch of a self-serve advertising platform in October 2025 could unlock the massive long-tail of advertisers currently priced out of premium inventory.

Who Is This Stock For?

Perfect For

  • ✓Aggressive growth investors with high risk tolerance
  • ✓Believers in AI transformation of advertising
  • ✓Momentum traders riding trends
  • ✓Those comfortable with binary outcomes

Less Suitable For

  • ✗Value investors (extreme valuation)
  • ✗Risk-averse retirees
  • ✗Anyone needing stable, predictable returns
  • ✗Investors uncomfortable with 50%+ drawdowns

Investment Recommendation

Conclusion

AppLovin represents the most explosive growth story in advertising technology, with AXON creating a genuine moat in mobile advertising. However, the extreme valuation leaves no room for error - any disappointment could trigger a violent correction. This is a speculative investment suitable only for aggressive growth investors who can stomach extreme volatility. The potential rewards are massive, but so are the risks.

2025 Bull Target
$500-600
2025 Bear Target
$200-250
Risk Level
Extreme
Recommendation
Speculative Buy (1-2% max)

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