AppLovin - Tops in Marketing and Monetization Software

tSummary

• AppLovin Corporation (APP) has shown impressive technical performance, with a 67.56% gain since 8/15 and 251.04% gain in the last year.
• The company offers a robust software platform for advertisers, including AppDiscovery, MAX, Adjust, Wurl, and SparkLabs, enhancing marketing and monetization.
• Analysts are bullish with 15 strong buys and price targets between $57 and $155, citing competitive advantages and growth potential in mobile and e-commerce advertising.
• Despite its volatility, AppLovin's market cap is $47.22 billion with expected revenue growth of 35% this year and 15.20% next year.

The Chart of the Day belongs to the advertising software company AppLovin (APP) . I found the stock by using Barchart's powerful screening functions to find stocks with the highest technical buy signals, highest Weighted Alpha, superior current momentum and having a Trend Seeker buy signal then used the Flipchart feature to review the charts for consistent price appreciation. Since the Trend Seeker signaled a buy on 8/15 the stock gained 67.56%.

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AppLovin Corporation engages in building a software-based platform for advertisers to enhance the marketing and monetization of their content in the United States and internationally. It operates through two segments, Software Platform and Apps. The company's software solutions include AppDiscovery, a marketing software solution, which matches advertiser demand with publisher supply through auctions; MAX, an in-app bidding software that optimizes the value of a publisher's advertising inventory by running a real-time competitive auction; Adjust, a measurement and analytics marketing platform that provides marketers with the visibility, insights, and tools needed to grow their apps from early stage to maturity; and Wurl, a connected TV platform, which distributes streaming video for content companies and provides advertising and publishing solutions through its AdPool, ContentDiscovery, and Global FAST Pass products. It also offers SparkLabs, which uses app store optimization to enhance ad visibility; AppLovin Exchange, which connects buyers to mobile and CTV devices through a single and direct RTB exchange; and Array, an end-to-end app management suite for mobile operators and end users. In addition, the company operates various free-to-play mobile games. It serves individuals, small and independent businesses, enterprises, advertisers and advertising networks, mobile app publishers, indie studio developers, and internet platforms. AppLovin Corporation was incorporated in 2011 and is headquartered in Palo Alto, California. 

Barchart's Opinion Trading systems are listed below. Please note that the Barchart Opinion indicators are updated live during the session every 20 minutes and can therefore change during the day as the market fluctuates. The indicator numbers shown below therefore may not match what you see live on the Barchart.com website when you read this report.

Barchart Technical Indicators:

• 100% technical buy signals
• 234.83+ Weighted Alpha
• 251.04% gain in the last year
• Trend Seeker buy signal
• Above its 20, 50 and 100 day moving averages
• 16 new highs and up 66.15% in the last month
• Relative Strength Index 85.89%
• Technical support level at $140.96
• Recently traded at $143.40 with 50 day moving average of $101.42

Fundamental Factors:

• Market Cap $47.22 billion
• P/E 59.55
• Revenue expected to grow 35.00%this year and another 15.20% next year
• Earnings are estimated to increase 251.00% this year, an additional 29.70% next year and continue to compound at an annual rate of 20.00% for the next 5 years

Analysts and Investor Sentiment -- I don't buy stocks because everyone else is buying but I do realize that if major firms and investors are dumping a stock it's hard to make money swimming against the tide:

• Wall Street analyst gave 15 strong buy, 2 buy, 5 hold and 1 sell opinion on the stock
• Analysts' price targets are between $57 and $155
• Value Line rates the stock its highest rating of 1 and comments: " AppLovin has posted stunning topline results. Overall revenues have risen, thanks to an improvement in performance of AppDiscovery, the company’s marketing software solution. AppLovin has released its Finance App Insights Report, which showed that the global finance app industry is poised for growth throughout 2024."
• CFRAs MarketScope rates the stock a 4 star buy with a price target of $143 and comments:"We maintain our Buy rating on shares of APP due to its competitive advantages in mobile advertising and increased total addressable market (TAM) as it expands into e-commerce advertising. We see upside contribution from its Web Advertising Program over time as the segment grows, and believe APP is well positioned to capitalize on opportunities in the space from the success of its AXON 2 AI algorithm."
• MorningStar give the stock its below average rating of 2 with a fair value of $121 or 8% over valued
• 24,380 investors monitor the stock on Seeking Alpha

Additional disclosure: The Barchart Chart of the Day highlights stocks that are experiencing exceptional current price appreciation. They are not intended to be buy recommendations as these stocks are extremely volatile and speculative. Should you decide to add one of these stocks to your investment portfolio it is highly suggested you follow a predetermined diversification and moving stop loss discipline that is consistent with your personal investment risk tolerance and reevaluate your stop losses at least on a weekly basis.