Investors in The Trade Desk (TTD -2.15%) were seeing red on Thursday as the stock plunged, but they were also green with envy.As shares of The Trade Desk tumbled more than 30%, fellow adtech titan AppLovin (APP 8.15%) was soaring on its earnings report, jumping more than 20% on its fourth-quarter results as it smashed estimates once again.For The Trade Desk shareholders, it was clearly a disappointing turn of events, and seeing AppLovin's shares soar only added insult to injury, as AppLovin has surpassed Th ...

Nvidia (NVDA 2.63%) shares have advanced 180% since January 2024 amid incredible demand for its artificial intelligence platforms. But billionaire Israel Englander, CEO of hedge fund Millennium Management, sold down his position in the fourth quarter, while buying shares of AppLovin (APP 8.15%), an AI stock up 1,180% since January 2024.Englander sold 1.1 million shares of Nvidia, reducing his position by 10%. Nvidia is still the fifth-largest position in his portfolio excluding options contracts.Englander b ...

Core Viewpoint - AppLovin has experienced significant stock price appreciation, with shares increasing over 900% in the past year, driven by strong earnings and growth in its adtech platform [1][2]. Financial Performance - AppLovin's advertising segment revenue surged 73% to $999.5 million, while overall revenue increased 44% to $1.37 billion, exceeding the consensus estimate of $1.26 billion [3]. - The company's gross margin improved to 76.7% from 71.3% a year ago, and sales and marketing expenses were reduced by 4%, contributing to faster growth in profitability metrics compared to revenue [4]. - Earnings per share (EPS) rose from $0.49 to $1.73, surpassing the consensus of $1.24, while adjusted EBITDA increased 78% to $848 million [5]. - Operating cash flow was $701 million, and free cash flow was $695 million, with a net debt of $2.8 billion at year-end [6]. Future Outlook - AppLovin forecasts first-quarter revenue between $1.355 billion and $1.385 billion, indicating growth of 28% to 31%, and adjusted EBITDA is expected to range from $855 million to $885 million [6]. - The company plans to sell its app business for approximately $900 million, which will allow it to focus solely on its adtech operations and develop self-service capabilities for advertisers [7]. - AppLovin has seen early success in the e-commerce sector and anticipates it will be a significant contributor by 2025, although the timing remains uncertain [8]. Valuation Considerations - The stock's forward price-to-earnings (P/E) ratio is over 65 times 2025 analyst estimates, which raises questions about its valuation despite strong growth prospects [9]. - Long-term revenue growth from the gaming vertical is projected to be between 20% to 30%, and the shift to self-service capabilities is expected to further enhance revenue growth [10]. - The divestiture of the app portfolio is seen as a positive move to spotlight the adtech business, potentially reducing debt and improving revenue growth [11].

Investment Rating - The report maintains a "Buy" rating for AppLovin (APP.US) with a target price of $535, indicating a potential upside of 41% from the current price of $380.32 [4][7]. Core Insights - AppLovin's Q4 2024 revenue reached $1.373 billion, a year-over-year increase of 44.0%, exceeding market expectations by 8.6%. The net profit was $599 million, with a net profit margin increase of 25.6 percentage points to 43.6%. Adjusted EBITDA was $848 million, surpassing market expectations by 10.9%, with an adjusted EBITDA margin improvement of 11.8 percentage points to 61.8% [7][8]. - The company is transitioning to a pure advertising platform by divesting its existing Apps business, expected to generate a total transaction value of $900 million, which is anticipated to significantly enhance profit margins. The company aims to expand its advertiser coverage beyond gaming, leveraging AI to automate ad placements and attributions [7][8]. - E-commerce is projected to contribute significantly this year, with the advertising business growing by 73% year-over-year in Q4 2024. The company expects e-commerce to account for 10% of total revenue by year-end [7][8]. - The target price has been raised to $535 based on strong advertising performance, with revenue forecasts for 2025 and 2026 adjusted to $4.5 billion and $5.6 billion, respectively, and adjusted EBITDA margins projected at 79% and 80% [7][8]. Financial Summary - For FY23, AppLovin's revenue is projected at $3.283 billion, with operating profit of $648 million and adjusted EBITDA of $1.503 billion. By FY27, revenue is expected to reach $8.037 billion, with operating profit of $3.962 billion and adjusted EBITDA of $5.628 billion [3][8]. - The company’s net profit is forecasted to grow from $357 million in FY23 to $3.390 billion in FY27, reflecting a significant increase in profitability over the forecast period [8].

Small deep value individual investor, with a modest private investment portfolio, split approx. 50%-50% between shares and call options. I have a B.Sc. in aeronautical engineering and over 6 years of experience as an engineering consultant in the aerospace sector. The latter statement is not relevant in any way whatsoever to my investment style, but I thought to add it for self-indulgent purposes. I have a contrarian investment style, highly risky, and often dealing with illiquid options. How illiquid? Well ...

Shares of AppLovin Corp APP were climbing in early trading on Thursday, after the company reported upbeat fourth-quarter results.The company reported its quarterly results amid an positive earnings season. Here are some key analyst takeaways.BofA Securities On AppLovinAnalyst Omar Dessouky reaffirmed a Buy rating, while raising the price target from $375 to $580.The magnitude of AppLovin's fourth-quarter beat was "completely unexpected," Dessouky said in a note. eCommerce is estimated to have contributed ar ...

AppLovin Corporation (APP) has seen its stock surge 34% in the past three months. This impressive rise has outpaced the industry's 28% rally.Compared with its competitors in the in-game mobile advertising space, APP’s performance is notably stronger. Alphabet Inc. (GOOGL) has gained 4.5%, and Meta Platforms (META) has returned 25.5% over the same period.Image Source: Zacks Investment ResearchNow, the key question for investors is whether the stock’s growth trajectory justifies a “Buy” at its current level o ...

“The inescapable fact is that the value of an asset, whatever its character, cannot over the long-term grow faster than its earnings do.” – Warren BuffettCorporate earnings are one of the main drivers of stock market activity over time. That’s why earnings expectations and estimates are so important.It’s always a good idea to keep an eye on upcoming earnings releases.Find the latest EPS estimates and surprises on Zacks Earnings Calendar.Zacks receives daily electronic data feeds and printed research reports ...

Shares of digital advertising company AppLovin (APP 24.00%) absolutely skyrocketed on Thursday after the company smashed expectations with its financial report for the fourth quarter of 2024. As of 11 a.m. ET, AppLovin stock was up 31% and had hit an all-time high at over $500 per share.The growth rate just acceleratedOnly founded in 2011, AppLovin now has a market capitalization of over $160 billion as of today. The company managed to generate revenue of $4.7 billion in 2024, which was up 43% from 2023. An ...

Shares of Applovin ripped more than 30% higher Thursday after the company reported a fourth-quarter earnings beat, causing many analysts to lift their price targets.The ad tech company said on its earnings call it was divesting its apps business, as the company aims to move into other verticals for their AI-powered AXON advertising software like fintech, insurance and automotive.Analysts at Wolfe praised the sale of the apps segment, saying the company's financials "gets cleaner at a time when its growth ou ...