Latest news with #AdamForoughi
CNBC
4 days ago
- Business
- CNBC
AppLovin CEO sees benefits from Apple-Epic fallout as stock pops on earnings
AppLovin shares resumed their historic rally on Thursday after the ad-tech company reported better-than-expected earnings for the second quarter. The stock popped 11% and is now up 34% for the year after soaring more than eightfold in 2024. Wall Street has piled into the company due to its growth from artificial intelligence technology that's given advertisers more ways to target users in mobile games. CEO Adam Foroughi suggested on the earnings call that another wave of growth is likely on the way due to the legal saga between Apple and Epic Games. In April, a judge in Oakland found that Apple had violated the court's original order from a case that was originally decided in 2021, which forced the iPhone developer to make limited changes to its linking out policy under California law. In June, Apple was dealt a blow in the U.S. Court of Appeals for the Ninth Circuit, as a panel of judges denied the company's emergency application to halt changes to its App Store that resulted from the legal battle. Foroughi, who founded AppLovin in 2012 and took it public nine years later, was asked on Wednesday if gaming companies have changed the way they spend money to acquire users due to the Epic case. Foroughi said the company hasn't seen an impact yet, and that it will "take longer than people expect," with a big benefit coming within four to eight quarters. The idea is that developers are no longer being forced to pay Apple's 15%-30% take because purchases can be paid outside the App Store, so they'll be willing to spend more on advertising to find new users. That plays into AppLovin's market. "You'll start seeing it compound pretty quickly in terms of benefit to us as an ad platform," Foroughi said on the call with analysts. "Once the very large leaders start doing it, you'll start seeing the smaller to mid-sized ones really pick it up quickly." For the time being, results appear good enough for investors when it comes to the present. Net income more than doubled to $819.5 million, or $2.39 a share, from $310 million, or 89 cents a share a year earlier. Earnings sailed past analysts' estimates of $2.03, according to LSEG. Revenue increased 77% to $1.26 billion, with that growth figure excluding last year's revenue from the company's gaming business, which it sold in June. Analysts expected revenue of $1.27 billion. While AppLovin's stock has been a Wall Street darling in recent years, multiple firms don't believe the story and have been public in their criticism. In March, a third short-selling firm raised concerns about the company's digital ad technology and claimed that it is breaking app store rules. That report, from Muddy Waters Research, said that AppLovin's ad tactics "systematically" violate app stores' terms of service by "impermissibly extracting proprietary IDs from Meta, Snap, TikTok, Reddit, Google, and others." A month earlier, Fuzzy Panda Research and Culper Research critiqued AppLovin's AXON software, which drove its earnings growth and stock surge. A fter the initial short reports were published, Foroughi wrote a blog post, defending his company's technology and practices, and taking aim at those trying to profit from AppLovin's decline, calling them "nefarious short-sellers" who were "making false and misleading claims aimed at undermining our success, and driving down our stock for their own financial gain." Analysts at Wedbush still recommend buying the shares and wrote in a report after the latest results that the fallout of the Apple-Epic case will likely become "a tailwind for AppLovin next year."
Yahoo
5 days ago
- Business
- Yahoo
AppLovin (NASDAQ:APP) Misses Q2 Sales Targets
Mobile app advertising platform AppLovin (NASDAQ: APP) missed Wall Street's revenue expectations in Q2 CY2025, but sales rose 16.5% year on year to $1.26 billion. On the other hand, next quarter's outlook exceeded expectations with revenue guided to $1.33 billion at the midpoint, or 1.3% above analysts' estimates. Its GAAP profit of $2.39 per share was 20.4% above analysts' consensus estimates. Is now the time to buy AppLovin? Find out in our full research report. AppLovin (APP) Q2 CY2025 Highlights: Revenue: $1.26 billion vs analyst estimates of $1.27 billion (16.5% year-on-year growth, 1.2% miss) EPS (GAAP): $2.39 vs analyst estimates of $1.98 (20.4% beat) Adjusted EBITDA: $1.02 million vs analyst estimates of $992 million (0.1% margin, 99.9% miss) Revenue Guidance for Q3 CY2025 is $1.33 billion at the midpoint, above analyst estimates of $1.31 billion EBITDA guidance for Q3 CY2025 is $1.08 billion at the midpoint, above analyst estimates of $1.06 billion Operating Margin: 76.1%, up from 36.2% in the same quarter last year Free Cash Flow Margin: 61%, up from 56% in the previous quarter Market Capitalization: $127.9 billion Company Overview Co-founded by Adam Foroughi, who was frustrated with not being able to find a good solution to market his own dating app, AppLovin (NASDAQ:APP) is both a mobile game studio and provider of marketing and monetization tools for mobile app developers. Revenue Growth Reviewing a company's long-term sales performance reveals insights into its quality. Any business can put up a good quarter or two, but the best consistently grow over the long haul. Over the last three years, AppLovin grew its sales at a decent 22.1% compounded annual growth rate. Its growth was slightly above the average software company and shows its offerings resonate with customers. This quarter, AppLovin's revenue grew by 16.5% year on year to $1.26 billion but fell short of Wall Street's estimates. Company management is currently guiding for a 11% year-on-year increase in sales next quarter. Looking further ahead, sell-side analysts expect revenue to grow 13.3% over the next 12 months, a deceleration versus the last three years. Despite the slowdown, this projection is commendable and suggests the market sees success for its products and services. Software is eating the world and there is virtually no industry left that has been untouched by it. That drives increasing demand for tools helping software developers do their jobs, whether it be monitoring critical cloud infrastructure, integrating audio and video functionality, or ensuring smooth content streaming. Click here to access a free report on our 3 favorite stocks to play this generational megatrend. Customer Acquisition Efficiency The customer acquisition cost (CAC) payback period represents the months required to recover the cost of acquiring a new customer. Essentially, it's the break-even point for sales and marketing investments. A shorter CAC payback period is ideal, as it implies better returns on investment and business scalability. AppLovin is extremely efficient at acquiring new customers, and its CAC payback period checked in at 3.9 months this quarter. The company's rapid recovery of its customer acquisition costs indicates it has a highly differentiated product offering and a strong brand reputation. These dynamics give AppLovin more resources to pursue new product initiatives while maintaining the flexibility to increase its sales and marketing investments. Key Takeaways from AppLovin's Q2 Results It was encouraging to see AppLovin's revenue and EBITDA guidance for next quarter beat analysts' expectations. On the other hand, the quarter itself was weak, with revenue and EBITDA slightly falling short of Wall Street's estimates. Overall, this quarter could have been better. The stock traded down 1.9% to $383.51 immediately following the results. AppLovin's latest earnings report disappointed. One quarter doesn't define a company's quality, so let's explore whether the stock is a buy at the current price. If you're making that decision, you should consider the bigger picture of valuation, business qualities, as well as the latest earnings. We cover that in our actionable full research report which you can read here, it's free. Sign in to access your portfolio
Yahoo
08-07-2025
- Business
- Yahoo
Veteran analyst drops jaw-dropping price target on AppLovin stock
Veteran analyst drops jaw-dropping price target on AppLovin stock originally appeared on TheStreet. It's safe to say that when most folks think of AI stocks, they typically picture shiny Nvidia or AMD GPUs. This is for good reason, as those GPUs are the rockstars powering the most complex chatbots like ChatGPT, Gemini, Claude, and Grok. But in doing that, investors tend to ignore a whole software side that continues flying under the radar. 💵💰💰💵 One such unsung hero is AppLovin () , a scrappy ad-tech player turning AI into a money machine for mobile ads. The AI software stock turned heads on Wall Street with a rip-roaring 300% gain in 2024, but things have been mostly muted so far this year. Nevertheless, a fresh analyst note says the tide could flip fast, giving this stock the juice it needs to rocket higher again. AppLovin's is an AI-powered ad-tech giant that's stunned everyone with its eye-catching operational performance of began in Palo Alto over a decade ago when Adam Foroughi, John Krystynak, and Andrew Karam joined forces to help mobile app developers boost user revenue. The platform started as a simple recommendation tool but swiftly evolved into a full-on in-app advertising machine. Following a string of funding rounds, it went public in 2021 at a whopping valuation of nearly $24 billion. In recent years, AppLovin has doubled down on layering AI into its powerful ad tech engine. Its AI-powered MAX mediation and AXON targeting engines fine-tune ad placements in real-time, tracking user behavior to boost returns. With a reach that spans north of a billion daily gaming sessions, AppLovin's data advantage is tough to beat. More Tech Stock News: Google's quiet AI win spells trouble for Amazon Nvidia-backed stock sends a quiet shockwave through the AI world Veteran Tesla analyst drops 4-word call Moreover, with a lean software model and publishing arm, it's locked in a moat that's almost impossible to cross. AppLovin just picked up a fresh vote of confidence from Scotiabank, which assigned a Sector Outperform rating on the stock with a $430 price target. That implies a superb 25% upside from here, and the analyst behind the call, Nat Schindler, didn't mince words. Schindler feels AppLovin has 'blown through the Rule of 40,' which is typically considered the gold standard for software investors. That means it efficiently blends sales growth while its profit margin easily clears the 40% bar that healthy SaaS firms aim as its recent quarterlies suggest, AppLovin isn't just clearing it, it's lapping the field. In the first quarter, the company posted a 40% year-over-year jump in sales growth and an eye-catching 68% adjusted EBITDA margin. That equates to a triple-digit 'Rule of 40' number, a massive accomplishment in performance advertising. Free cash flow was perhaps even more impressive, topping $826 million, which AppLovin's management used to fund a $1.2 billion buyback and the exit from its old mobile games unit. Though Scotiabank concedes the stock doesn't look cheap on sales multiples, with such margins, there's plenty of room for earnings to continue climbing. Scotiabank's bullish stance joins a chorus of other big analysts warming up to AppLovin. Morgan Stanley just raised its target to $460 and keeps an Overweight call. Similarly, Goldman Sachs nudged its price target to $435, noting AppLovin's ad platform is hitting a new stride. It's important to note that AppLovin stock skyrocketed close to 300% last year and over 816% in the past three years. Year-to-date, though, we've seen sluggishness, with the stock cooling off, delivering just a meager 6.5% gain compared to the broader market gain of around 6%. The past month, in particular, has been rough, where the stock has lost almost 18% value, which creates an attractive entry analyst drops jaw-dropping price target on AppLovin stock first appeared on TheStreet on Jul 8, 2025 This story was originally reported by TheStreet on Jul 8, 2025, where it first appeared. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Miami Herald
08-07-2025
- Business
- Miami Herald
Veteran analyst drops jaw-dropping price target on AppLovin stock
It's safe to say that when most folks think of AI stocks, they typically picture shiny Nvidia or AMD GPUs. This is for good reason, as those GPUs are the rockstars powering the most complex chatbots like ChatGPT, Gemini, Claude, and Grok. But in doing that, investors tend to ignore a whole software side that continues flying under the radar. Don't miss the move: Subscribe to TheStreet's free daily newsletter One such unsung hero is AppLovin (APP) , a scrappy ad-tech player turning AI into a money machine for mobile ads. The AI software stock turned heads on Wall Street with a rip-roaring 300% gain in 2024, but things have been mostly muted so far this year. Nevertheless, a fresh analyst note says the tide could flip fast, giving this stock the juice it needs to rocket higher again. Image source:AppLovin's is an AI-powered ad-tech giant that's stunned everyone with its eye-catching operational performance of late. Related: JPMorgan delivers blunt warning on S&P 500 It began in Palo Alto over a decade ago when Adam Foroughi, John Krystynak, and Andrew Karam joined forces to help mobile app developers boost user revenue. The platform started as a simple recommendation tool but swiftly evolved into a full-on in-app advertising machine. Following a string of funding rounds, it went public in 2021 at a whopping valuation of nearly $24 billion. In recent years, AppLovin has doubled down on layering AI into its powerful ad tech engine. Its AI-powered MAX mediation and AXON targeting engines fine-tune ad placements in real-time, tracking user behavior to boost returns. With a reach that spans north of a billion daily gaming sessions, AppLovin's data advantage is tough to beat. More Tech Stock News: Google's quiet AI win spells trouble for AmazonNvidia-backed stock sends a quiet shockwave through the AI worldVeteran Tesla analyst drops 4-word call Moreover, with a lean software model and publishing arm, it's locked in a moat that's almost impossible to cross. AppLovin just picked up a fresh vote of confidence from Scotiabank, which assigned a Sector Outperform rating on the stock with a $430 price target. That implies a superb 25% upside from here, and the analyst behind the call, Nat Schindler, didn't mince words. Schindler feels AppLovin has "blown through the Rule of 40," which is typically considered the gold standard for software investors. That means it efficiently blends sales growth while its profit margin easily clears the 40% bar that healthy SaaS firms aim for. Related: TikTok's next move has Google and Meta sweating bullets However, as its recent quarterlies suggest, AppLovin isn't just clearing it, it's lapping the field. In the first quarter, the company posted a 40% year-over-year jump in sales growth and an eye-catching 68% adjusted EBITDA margin. That equates to a triple-digit "Rule of 40" number, a massive accomplishment in performance advertising. Free cash flow was perhaps even more impressive, topping $826 million, which AppLovin's management used to fund a $1.2 billion buyback and the exit from its old mobile games unit. Though Scotiabank concedes the stock doesn't look cheap on sales multiples, with such margins, there's plenty of room for earnings to continue climbing. Scotiabank's bullish stance joins a chorus of other big analysts warming up to AppLovin. Morgan Stanley just raised its target to $460 and keeps an Overweight call. Similarly, Goldman Sachs nudged its price target to $435, noting AppLovin's ad platform is hitting a new stride. It's important to note that AppLovin stock skyrocketed close to 300% last year and over 816% in the past three years. Year-to-date, though, we've seen sluggishness, with the stock cooling off, delivering just a meager 6.5% gain compared to the broader market gain of around 6%. The past month, in particular, has been rough, where the stock has lost almost 18% value, which creates an attractive entry point. Related: Amid AI boom, veteran analyst reboots AMD, Supermicro stock price targets The Arena Media Brands, LLC THESTREET is a registered trademark of TheStreet, Inc.
Yahoo
04-07-2025
- Business
- Yahoo
AppLovin Sells Mobile Gaming Business to Tripledot Studios for $400M
AppLovin Corporation (NASDAQ:APP) is one of the best NASDAQ growth stocks to buy for the next 3 years. On July 1, AppLovin announced the successful completion of the sale of its mobile gaming business to Tripledot Studios. The transaction was initially announced on May 7 and officially closed on June 30, after satisfying all customary closing conditions and regulatory requirements. Under the terms of the purchase agreement, AppLovin divested its mobile gaming business for a total consideration of $400 million in cash. A close-up of a mobile device, showing an advertiser reaching out to a consumer via a software-based platform. The divestiture includes 10 game studios and their popular mobile gaming franchises. The studios involved collectively develop well-known mobile games across various genres. The Co-founder and CEO of AppLovin, Adam Foroughi, stated that this transaction streamlines the company to its core business and allows a full focus on future opportunities. AppLovin Corporation (NASDAQ:APP) builds a software-based platform for advertisers to enhance the marketing and monetization of their content in the US and internationally. While we acknowledge the potential of APP as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the . READ NEXT: and . Disclosure: None. This article is originally published at Insider Monkey. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
