Latest news with #AppLovin
Yahoo
2 days ago
- Business
- Yahoo
AppLovin (NasdaqGS:APP) Reports Q1 Sales Increase From US$1,058 Million To US$1,484 Million
AppLovin recently reported significant financial growth, including a Q1 sales increase from $1,058 million to $1,484 million, and net income climbing from $236 million to $576 million. The company's share price surged 46% last month, a move potentially bolstered by these robust earnings and strategic developments like the new Chartboost in-app bidding enhancement and ongoing share buybacks. In contrast to the broader market, which rose by only 1.7% in the last seven days, AppLovin's impressive earnings and operational advancements may have contributed additional momentum to its stock price move, supporting its distinction amidst a moderately growing market. AppLovin has 3 possible red flags we think you should know about. Uncover the next big thing with financially sound penny stocks that balance risk and reward. The recent financial growth reported by AppLovin, notably the surge in Q1 sales and net income, potentially aligns with its ambitious strategy of expanding into global advertising and enhancing its AI capabilities. This advancement could positively impact revenue and earnings forecasts, given the company's focus on high-margin advertising rather than its traditional gaming sector. Analysts are projecting annual revenue growth of 19.6% over the next three years, influenced by this strategic shift. The unveiling of the Chartboost in-app bidding feature and ongoing share buybacks underscore AppLovin's commitment to operational efficiency and returning value to shareholders. Over the past three years, AppLovin's total shareholder return, which includes share price and dividends, was very large at 896.70%. Compared to the US Software industry's one-year return of 22.8%, AppLovin's recent performance has also been strong, with a share price increase exceeding the industry average over the past year. Although market conditions and competition present risks, current developments suggest potential for growth, albeit with inherent uncertainties associated with execution. The current share price movement, which shows a discount of approximately 15.40% to the consensus price target of US$453.54, indicates that analysts believe there is room for appreciation based on anticipated performance improvements. However, with analysts expressing varied expectations, it is crucial for investors to assess these potential returns against the backdrop of wider market conditions and AppLovin's execution of its strategic initiatives. Examine AppLovin's past performance report to understand how it has performed in prior years. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include NasdaqGS:APP. This article was originally published by Simply Wall St. Have feedback on this article? Concerned about the content? with us directly. Alternatively, email editorial-team@ Sign in to access your portfolio
Yahoo
2 days ago
- Business
- Yahoo
AppLovin (NasdaqGS:APP) Reports Q1 Sales Increase From US$1,058 Million To US$1,484 Million
AppLovin recently reported significant financial growth, including a Q1 sales increase from $1,058 million to $1,484 million, and net income climbing from $236 million to $576 million. The company's share price surged 46% last month, a move potentially bolstered by these robust earnings and strategic developments like the new Chartboost in-app bidding enhancement and ongoing share buybacks. In contrast to the broader market, which rose by only 1.7% in the last seven days, AppLovin's impressive earnings and operational advancements may have contributed additional momentum to its stock price move, supporting its distinction amidst a moderately growing market. AppLovin has 3 possible red flags we think you should know about. Uncover the next big thing with financially sound penny stocks that balance risk and reward. The recent financial growth reported by AppLovin, notably the surge in Q1 sales and net income, potentially aligns with its ambitious strategy of expanding into global advertising and enhancing its AI capabilities. This advancement could positively impact revenue and earnings forecasts, given the company's focus on high-margin advertising rather than its traditional gaming sector. Analysts are projecting annual revenue growth of 19.6% over the next three years, influenced by this strategic shift. The unveiling of the Chartboost in-app bidding feature and ongoing share buybacks underscore AppLovin's commitment to operational efficiency and returning value to shareholders. Over the past three years, AppLovin's total shareholder return, which includes share price and dividends, was very large at 896.70%. Compared to the US Software industry's one-year return of 22.8%, AppLovin's recent performance has also been strong, with a share price increase exceeding the industry average over the past year. Although market conditions and competition present risks, current developments suggest potential for growth, albeit with inherent uncertainties associated with execution. The current share price movement, which shows a discount of approximately 15.40% to the consensus price target of US$453.54, indicates that analysts believe there is room for appreciation based on anticipated performance improvements. However, with analysts expressing varied expectations, it is crucial for investors to assess these potential returns against the backdrop of wider market conditions and AppLovin's execution of its strategic initiatives. Examine AppLovin's past performance report to understand how it has performed in prior years. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include NasdaqGS:APP. This article was originally published by Simply Wall St. Have feedback on this article? Concerned about the content? with us directly. Alternatively, email editorial-team@ 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
Yahoo
3 days ago
- Business
- Yahoo
ARM vs. APP: Which AI-Exposed Tech Stock is a Better Buy Right Now?
Both AppLovin Corporation APP and Arm Holdings plc ARM and are tech companies riding the AI wave, AppLovin through sophisticated AI-driven advertising algorithms and app monetization engines and Arm Holdings through its advanced chip architectures that fuel AI hardware performance, making them compelling, innovation-focused plays on the accelerating demand for AI solutions across industries. Their shared emphasis on harnessing artificial intelligence to drive efficiency, scalability, and business impact places them at the forefront of a broader technological shift, where AI is rapidly becoming central to competitive advantage and long-term growth. AppLovin is accelerating its evolution into a leading AI-powered advertising platform, shifting its core strategy toward high-growth, high-margin segments within the digital ecosystem. A key milestone in this transition was the $900 million sale of its gaming unit to Tripledot Studios, allowing the company to streamline its operations and intensify focus on its proprietary AXON 2.0 technology, an AI engine that intelligently optimizes ad delivery, targeting, and performance. With AI now embedded at the heart of its operations, AppLovin is investing heavily in automation and advanced algorithmic tools designed to enhance advertiser efficiency and drive better outcomes across campaigns. These innovations enable the platform to serve over 10 million businesses globally, offering data-driven precision and scalability in an increasingly competitive digital advertising market. AppLovin's recent earnings underscore the impact of its AI-led approach to advertising. The company continues to benefit from AXON 2.0, which uses deep learning to deliver high-conversion ad placements across mobile apps. In the first quarter of 2025, revenue surged 40% year over year, driven by strong advertiser demand and improved campaign performance through intelligent optimization. Operational efficiency has scaled with AI integration, as reflected by an 83% year-over-year jump in adjusted EBITDA, alongside a remarkable 144% increase in net income. For the full year 2024, revenue rose 43%, while adjusted EBITDA climbed 81%, validating the company's ability to deliver profitability through advanced technology and smart resource allocation. Arm Holdings maintains a dominant foothold in the semiconductor industry. Its low-power chip architecture has long been a critical component in smartphones and tablets. Major tech giants like Apple AAPL, Qualcomm QCOM, and Samsung have consistently relied on ARM's designs. ARM remains well-positioned to benefit from rapid advancements in AI and the Internet of Things. Its energy-efficient chips are increasingly embedded in smart devices, autonomous technologies, and cloud infrastructure. With AI workloads and IoT deployments accelerating, the need for scalable, power-efficient solutions has never been greater. Arm Holdings' ongoing efforts to tailor its architecture for AI applications further enhance its growth prospects. A distinctive aspect of Arm Holdings' business model is its licensing and royalty structure. ARM licenses its chip designs to major technology companies and earns royalties on every chip sold. This model provides a steady stream of revenues without significant capital expenditure. Furthermore, partnerships with key industry players allow the company to maintain relevance, ensuring it remains a preferred choice in sectors like automotive, data centers, and smart devices. Currently, tariff-related risks pose a potential headwind for Arm Holdings. The company revealed that approximately 10–20% of its royalty revenues stem from shipments into the U.S. market. Ongoing tariff tensions risk raising the cost of imported chips, which could dampen end-market demand in the United States. Higher prices may make imported, ARM-based devices less attractive compared to domestically produced alternatives, weakening ARM's competitive edge. This could lead to a decline in royalty revenues and, potentially, a slowdown in its licensing business. As a result, new product development may face delays, and demand for ARM's technology licenses could be negatively impacted. According to the Zacks Consensus Estimate, APP is poised to deliver a robust 24% year-over-year increase in sales, along with an impressive 85% surge in earnings per share (EPS) for the current fiscal year, highlighting strong operating leverage and accelerating profitability from its AI-driven advertising platform. Image Source: Zacks Investment Research In contrast, ARM is expected to report a more modest 17% sales growth and a relatively muted 5.5% increase in EPS, suggesting a steadier growth trajectory as it continues to scale its licensing model and invest in AI-enabled chip innovation. While both companies are benefiting from secular tech tailwinds, APP's significantly higher earnings momentum may reflect greater short-term operational efficiency and demand capture in the evolving digital advertising landscape. Image Source: Zacks Investment Research Arm Holdings trades at a forward 12-month P/E of 70.45X, well below its median of 103.99X, signaling a relative valuation discount. However, it still carries a steep premium, reflecting lofty expectations tied to its AI and IoT potential. In contrast, AppLovin's forward P/E of 39.05X is only slightly above its median of 38.78X, suggesting a more grounded valuation. Given APP's stronger earnings growth outlook and operational momentum, its current valuation appears more attractive. Investors may find better near-term upside in APP, especially as its AI-driven ad tech model continues to convert growth into profitability more effectively. While both Arm and AppLovin are strategically positioned to benefit from the rise of AI, AppLovin stands out for its ability to translate innovation into profitability more efficiently. Its sharpened focus on AI-powered ad technology, combined with strong operational execution, positions it for sustained growth. Moreover, AppLovin's valuation appears more grounded relative to its earnings potential, offering a favorable risk-reward profile. In contrast, Arm Holdings' premium pricing and exposure to external risks could limit near-term upside. For investors seeking a tech-forward, AI-driven company with scalable returns and strategic clarity, AppLovin emerges as the Buy right now. APP currently sports a Zacks Rank #1 (Strong Buy), while ARM carries a Zacks Rank #4 (Sell). You can see the complete list of today's Zacks #1 Rank stocks here. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report QUALCOMM Incorporated (QCOM) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report ARM Holdings PLC Sponsored ADR (ARM) : Free Stock Analysis Report AppLovin Corporation (APP) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Sign in to access your portfolio
Yahoo
3 days ago
- Business
- Yahoo
Generative AI Sales May Soar 600% by 2028: 2 Brilliant AI Stocks to Buy Now (Hint: Not Palantir)
Morgan Stanley estimates generative artificial intelligence (AI) revenue across software and internet companies will increase more than 600% between 2025 and 2028. AppLovin specializes in video game and e-commerce advertising, and the company has differentiated itself with a superior AI-powered targeting engine. CoreWeave is a leading provider of cloud AI infrastructure services, and the company just reported 420% sales growth in the first quarter. 10 stocks we like better than AppLovin › Following the introduction of ChatGPT, billionaire Bill Gates wrote, "Artificial intelligence (AI) is as revolutionary as mobile phones and the internet." That implies substantial wealth creation in the coming years. Morgan Stanley estimates generative AI revenue across software and internet companies will increase more than 600% to approach $1.1 trillion by 2028. Palantir Technologies probably comes to mind for many readers, given how well the stock has performed. But AppLovin (NASDAQ: APP) and CoreWeave (NASDAQ: CRWV) are also well positioned to benefit. AppLovin designs adtech software that lets developers market and monetize their applications across mobile and connected TV campaigns. Traditionally, most advertising on its platform has focused on video games, but the company is expanding on its primary market with a new e-commerce advertising product. AppLovin has differentiated itself with artificial intelligence (AI). Morgan Stanley says the company has a "best-in-class" recommendation engine called Axon that targets advertising campaigns with sophisticated machine learning models. Additionally, its in-house creative agency, SparkLabs, use generative AI to create personalized ad content for clients. AppLovin reported fantastic first-quarter financial results. Total revenue increased 40% to $1.4 billion, as strong sales growth in the advertising segment offset a decline in the mobile games segment. Meanwhile, generally accepted accounting principles (GAAP) earnings climbed 149% to $1.67 per diluted share. And management guided for 69% advertising sales growth in the second quarter. Importantly, AppLovin recently sold its mobile games portfolio for $800 million. That decision benefits the company in two ways. First, sales in that segment have been declining, so the divestiture eliminates the weakest part of the business. Second, it allows AppLovin to focus on its core adtech software business, including its nascent e-commerce product. Wall Street estimates AppLovin's earnings will increase at 43% annually through 2026. That makes the current valuation of 64 times earnings look fair, especially when the company beat the consensus estimate by an average of 33% in the last six quarters. Risk-tolerant investors should feel comfortable buying a small position today. CoreWeave provides cloud infrastructure and software services. The company runs the leading GPU cloud, meaning data center infrastructure that's purpose-built to support artificial intelligence (AI) applications and other complex workloads that need to be accelerated with graphics processing units (GPUs). The company uses Nvidia GPUs exclusively. CoreWeave has differentiated itself in a few important ways. First, it has regularly achieved strong results at the MLPerf benchmarks, objective tests that evaluate the performance of AI systems across training and inference workloads. Second, the company is often among the first cloud providers to deploy new Nvidia technology due to its close relationship with the chipmaker. "CoreWeave is built to move faster -- and time and time again, we've proven it by being first to operationalize the most advanced systems at scale," CEO Michael Intrator said earlier this year after the company launched Nvidia GB200 NVL72 systems ahead of its peers. That edge, coupled with expertise in managing large GPU clusters, explains why CoreWeave is growing like wildfire. First-quarter revenue soared 420% to $981 million, and adjusted operating income (which excludes stock-based compensation and interest payments) rose 550% to $162 million. However, CoreWeave has $7.8 billion in long-term debt and lease obligations. Interest on that debt consumed about one-quarter of revenue, which led the company to report a non-GAAP loss of $150 million. CoreWeave is not yet profitable, so it's difficult to value the stock. Having said that, the current price-to-sales ratio is 21. That is neither cheap nor outrageously expensive for a company that just reported triple-digit sales growth, especially when that sales growth came with a 73% gross margin. Patient investors comfortable with volatility should buy a small position. Before you buy stock in AppLovin, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and AppLovin wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $651,761!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $826,263!* Now, it's worth noting Stock Advisor's total average return is 978% — a market-crushing outperformance compared to 170% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of May 19, 2025 Trevor Jennewine has positions in Nvidia and Palantir Technologies. The Motley Fool has positions in and recommends AppLovin, Nvidia, and Palantir Technologies. The Motley Fool has a disclosure policy. Generative AI Sales May Soar 600% by 2028: 2 Brilliant AI Stocks to Buy Now (Hint: Not Palantir) was originally published by The Motley Fool 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
Yahoo
4 days ago
- Business
- Yahoo
Is Marqeta (MQ) Stock Outpacing Its Business Services Peers This Year?
The Business Services group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. Is Marqeta (MQ) one of those stocks right now? A quick glance at the company's year-to-date performance in comparison to the rest of the Business Services sector should help us answer this question. Marqeta is a member of the Business Services sector. This group includes 270 individual stocks and currently holds a Zacks Sector Rank of #3. The Zacks Sector Rank considers 16 different sector groups. The average Zacks Rank of the individual stocks within the groups is measured, and the sectors are listed from best to worst. The Zacks Rank is a successful stock-picking model that emphasizes earnings estimates and estimate revisions. The system highlights a number of different stocks that could be poised to outperform the broader market over the next one to three months. Marqeta is currently sporting a Zacks Rank of #2 (Buy). Within the past quarter, the Zacks Consensus Estimate for MQ's full-year earnings has moved 27.5% higher. This means that analyst sentiment is stronger and the stock's earnings outlook is improving. Based on the latest available data, MQ has gained about 39.1% so far this year. In comparison, Business Services companies have returned an average of 3.4%. This means that Marqeta is performing better than its sector in terms of year-to-date returns. Another Business Services stock, which has outperformed the sector so far this year, is AppLovin (APP). The stock has returned 20.5% year-to-date. Over the past three months, AppLovin's consensus EPS estimate for the current year has increased 22.2%. The stock currently has a Zacks Rank #1 (Strong Buy). To break things down more, Marqeta belongs to the Financial Transaction Services industry, a group that includes 35 individual companies and currently sits at #59 in the Zacks Industry Rank. This group has gained an average of 5.3% so far this year, so MQ is performing better in this area. On the other hand, AppLovin belongs to the Technology Services industry. This 129-stock industry is currently ranked #50. The industry has moved +5.8% year to date. Marqeta and AppLovin could continue their solid performance, so investors interested in Business Services stocks should continue to pay close attention to these stocks. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Marqeta, Inc. (MQ) : Free Stock Analysis Report AppLovin Corporation (APP) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Sign in to access your portfolio
