AI-Driven Advertising Has AppLovin Soaring

AppLovin develops and operates a mobile marketing platform in addition to making mobile apps. The company uses AI to help developers monetize and improve the marketing capabilities of their applications. APP has grown significantly over the past few years through acquisitions and organic growth. While the company’s niche has been the mobile gaming industry, it’s looking to broaden the advertiser base and mold its platform to better serve advertising efforts.

As for its finances, APP’s fourth-quarter fiscal 2024 earnings report showed a 44% jump in revenue, to nearly $1.4 billion, and a 78% increase in EBITDA, to $848 million. The company also revealed a strong cash position – $741 million in cash and cash equivalents – as well as guidance for 2025’s first quarter of more than $1 billion, with adjusted EBITDA of up to $825 million.

It’s no wonder APP shares are up 39% this year – and they could rise more. MAPsignals data shows how a rare bullish signal reflects Big Money investors are betting heavily on the forward picture of the stock.

Big Money Lifts AppLovin

Institutional volumes reveal plenty. In the last year, APP has enjoyed strong investor demand, which we believe to be institutional support.

Each green bar signals unusually large volumes in APP shares. They reflect our proprietary inflow signal, pushing the stock higher:

Plenty of technology names are under accumulation right now. But there’s a powerful fundamental story happening with AppLovin.

AppLovin Fundamental Analysis

Institutional support and a healthy fundamental backdrop make this company worth investigating. As you can see, APP has had strong sales growth:

• 3-year sales growth rate (+20.1%)
• 1-year sales growth rate (+43.4%)

Source: FactSet

Also, APP is expected to grow EPS by +49% in the next year.

Now it makes sense why the stock has been powering to new heights. APP has a track record of strong financial performance.

Marrying great fundamentals with our proprietary software has found some big winning stocks over the long term.

AppLovin has been a top-rated stock at MAPsignals. That means the stock has unusual buy pressure and growing fundamentals. We have a ranking process that showcases stocks like this on a weekly basis.

It’s made the rare Top 20 report multiple times in the last year, with more potentially on the horizon. The blue bars below show when APP was a top pick…sending shares higher:

Tracking unusual volumes reveals the power of money flows.

This is a trait that most outlier stocks exhibit…the best of the best. Big Money demand drives stocks upward.

AppLovin Price Prediction

The APP rally isn’t new at all. Big Money buying in the shares is signaling to take notice. Given the historical gains in share price and strong fundamentals, this stock could be worth a spot in a diversified portfolio.

Disclosure: the author holds no position in APP at the time of publication.

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