Latest news with #AppLovin
Yahoo
20 hours ago
- Business
- Yahoo
AppLovin to Sustain 'Phenomenal' Growth, Meet Second-Quarter Estimates, Wedbush Says
AppLovin's (APP) "phenomenal" growth is expected to continue, with the mobile technology provider se 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
Business Insider
2 days ago
- Business
- Business Insider
BofA Names Amazon, Oddity Tech & AppLovin Top Buys Ahead of Earnings
Bank of America is calling attention to five stocks it views favorably heading into earnings season. Among them are Oddity Tech (ODD), AppLovin (APP), and Amazon (AMZN). All three are buy-rated by the firm and offer different growth drivers as the second half of the year picks up. Elevate Your Investing Strategy: Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence. Let's briefly explore how BofA views these companies' standings ahead of their earnings. 3 Companies, 3 Bullish Propositions First is Oddity Tech, a digital-first beauty platform that is gaining attention for its strong direct-to-consumer strategy. Nearly all of its sales are generated through its own channels, allowing it to control the customer experience and margins. Bank of America raised its price target to $80 and believes the company will benefit from the steady shift in beauty sales to online platforms. The stock is already up 61% this year, and analysts believe its proprietary recommendation technology adds a meaningful edge in a crowded market. Backing that up, ODD stock holds a perfect 10 Smart Score, reflecting strong fundamentals and bullish sentiment across key indicators. AppLovin is also a standout pick for Bank of America. The company provides marketing and monetization software for app developers and remains a bullish name under the firm's coverage. Analysts see meaningful upside to 2026 EBITDA estimates, as many investors have yet to fully account for growth from its managed service onboarding and the expected rollout of self-serve tools. If both segments scale as anticipated, earnings estimates could move higher. The stock has gained momentum in recent months, supported by growing confidence in its AXON ad engine. Like Oddity Tech, AppLovin also holds a perfect 10 Tipranks' Smart Score, enhancing BofA's Buy position. Amazon is also on the firm's radar, especially with expectations for a strong retail performance in Q2. While cloud growth through AWS remains a focus, analysts highlight Amazon's broader positioning in global eCommerce, online ads, and devices. The company's customer-centric strategy continues to resonate in a competitive landscape. Bank of America sees the second half of the year as a key period for AWS reacceleration. According to TipRanks' Smart Score, AMZN stock scores a 9, indicating strong fundamentals and bullish overall sentiment.
Yahoo
3 days ago
- Business
- Yahoo
Own AppLovin (APP) Stock? This Is the 1 Thing to Watch Now.
Key Points AppLovin stock has soared in recent years with strong revenue growth and growing investor confidence. The company succeeded in the mobile gaming market but now has greater ambitions. 10 stocks we like better than AppLovin › AppLovin (NASDAQ: APP) is an advertising-technology (adtech) stock that's up nearly 1,200% over just the last two years, as of this writing. These incredible gains were fueled by stunning revenue growth and an extraordinary surge in investor confidence in the underlying business. AppLovin's revenue has increased by more than 250% over the last five years, which is a strong compound annual growth rate (CAGR) of more than 20%. As for investor confidence, consider the valuation for AppLovin stock. Five years ago, it traded at about 10 times its sales. Now it trades at more than 20 times sales. This higher valuation suggests that investors view the business more favorably than they used to and are consequently willing to pay a higher price to be a part-owner. In 2025, AppLovin stock is up another 10% year to date. And investors may be wondering what to think about this business now. Well, here's the one thing that investors should be watching as the rest of the year plays out. But first, here's what AppLovin does AppLovin's Axon software helps apps find users and generate revenue. Some apps monetize users by displaying ads and others find users by buying ad slots. The platform is powered by artificial intelligence (AI) and, if revenue growth is any indication, it's been quite effective. AppLovin's growth has been fueled by its AI software business. And this high-margin platform has helped its profits considerably. In the first quarter of 2025, for example, the company's revenue jumped 40% year over year to $1.5 billion. But its Q1 gross margin jumped to 82% from 72% in the prior-year period -- that's massive. Moreover, AppLovin's Q1 operating expenses dropped in various areas. For starters, sales and marketing expenses were down 19% from the first quarter of 2024. Likewise, research and development spending went down by 21%. Granted, many investors would like to see a technology company spend money on research to stay in front of competition, which may be a valid concern. But the point is that AppLovin's profits are soaring as it grows because of management's fiscal discipline. The chart below shows just how much profit metrics such as free cash flow and earnings per share (EPS) outpaced revenue growth over the past year. What to watch with AppLovin Based on all the above, I believe it's fair to say that AppLovin has been tremendously successful at what it does. And here's the thing: AppLovin has really only been addressing one part of the advertising market, which is mobile video games. But that's now changing. In 2025, AppLovin is greatly expanding its market and this is what investors need to be watching for the remainder of the year. AppLovin is expanding beyond the world of mobile apps and into web-based advertising. And the company is expanding beyond video games into other areas such as connected TV and e-commerce. The point is, AppLovin has succeeded with its first opportunity and now it's setting its sights on a much bigger prize. Should it succeed with this larger opportunity, AppLovin could certainly be a market-beating business from here. Stocks that outperform the S&P 500 often have strong growth rates and profitability. AppLovin could feasibly deliver on both over the long term if it can make the jump from mobile gaming. If AppLovin struggles, things could be more challenging for shareholders. As mentioned, the stock trades at more than 20 times sales, which assumes a measure of strong growth in coming years. If its software only works with the niche market of mobile gaming, it may not sustain the level of growth that investors expect, which could cause the stock to underperform. For what it's worth, I believe that AppLovin deserves the benefit of the doubt as it expands. Many doubted the company could do what it did in mobile gaming. It proved the doubters wrong once and I wouldn't be surprised if it did it again. That said, I don't have a crystal ball so investors will want to watch for signs that AppLovin's expanded strategy is working as 2025 plays out. AppLovin is expected to report financial results for the second quarter of 2025 on Aug. 6. Should you invest $1,000 in AppLovin right now? 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 $636,628!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,063,471!* Now, it's worth noting Stock Advisor's total average return is 1,041% — a market-crushing outperformance compared to 183% for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of July 21, 2025 Jon Quast has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends AppLovin. The Motley Fool has a disclosure policy. Own AppLovin (APP) Stock? This Is the 1 Thing to Watch Now. 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
AppLovin (APP) Outpaces Stock Market Gains: What You Should Know
In the latest trading session, AppLovin (APP) closed at $364.14, marking a +1.17% move from the previous day. The stock's change was more than the S&P 500's daily gain of 0.4%. Meanwhile, the Dow gained 0.47%, and the Nasdaq, a tech-heavy index, added 0.24%. Prior to today's trading, shares of the mobile app technology company had gained 3.59% outpaced the Business Services sector's loss of 0.55% and lagged the S&P 500's gain of 4.61%. The investment community will be closely monitoring the performance of AppLovin in its forthcoming earnings report. The company is scheduled to release its earnings on August 6, 2025. The company's earnings per share (EPS) are projected to be $1.97, reflecting a 121.35% increase from the same quarter last year. Our most recent consensus estimate is calling for quarterly revenue of $1.21 billion, up 12.16% from the year-ago period. For the full year, the Zacks Consensus Estimates project earnings of $8.4 per share and a revenue of $5.48 billion, demonstrating changes of +85.43% and +16.31%, respectively, from the preceding year. It's also important for investors to be aware of any recent modifications to analyst estimates for AppLovin. These revisions help to show the ever-changing nature of near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential. Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system. The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.18% higher. AppLovin is currently a Zacks Rank #3 (Hold). Digging into valuation, AppLovin currently has a Forward P/E ratio of 42.88. This signifies a premium in comparison to the average Forward P/E of 21.43 for its industry. Investors should also note that APP has a PEG ratio of 2.14 right now. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The Technology Services industry currently had an average PEG ratio of 1.58 as of yesterday's close. The Technology Services industry is part of the Business Services sector. This industry, currently bearing a Zacks Industry Rank of 85, finds itself in the top 35% echelons of all 250+ industries. The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1. Ensure to harness to stay updated with all these stock-shifting metrics, among others, in the next trading sessions. 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 AppLovin Corporation (APP) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research
Yahoo
4 days ago
- Business
- Yahoo
UiPath vs. AppLovin: Which AI-Driven Tech Stock is Purchase-Worthy?
UiPath PATH and AppLovin Corporation APP are two prominent players leveraging artificial intelligence to transform digital operations. UiPath leads the robotic process automation sector (RPA), applying AI to streamline enterprise on the other hand, operates in the mobile ad tech space, using AI to optimize app monetization and user acquisition. As AI becomes an integral part of modern business software, the key question is: Which of these AI-driven tech stocks presents a more compelling investment opportunity today? Let's examine their fundamentals, growth drivers and valuations. The Case for UiPath UiPath remains a strong force in the booming RPA market, which is poised for substantial expansion over the coming years. Its end-to-end automation platform positions the company to seize opportunities as demand for AI-driven solutions surges. A critical driver of PATH's success is its strategic alliances with top technology giants. Microsoft MSFT, Amazon AMZN and Salesforce CRM continue to play pivotal roles in expanding UiPath's reach and capabilities. These partnerships not only bolster PATH's credibility but also integrate its offerings into broader enterprise ecosystems powered by Microsoft Azure, Amazon's AWS and Salesforce Cloud solutions. The company boasts high customer retention, with net retention rates ranging between 110% and 115%, underscoring its ability to expand usage within existing accounts. In the first quarter of fiscal 2026, UiPath reported a 6% increase in revenues year over year, reaching $357 million. Additionally, its annual recurring revenue rose 12% to $1.69 billion, reflecting the strength of its subscription-based business model and customer loyalty. With a strong global presence, a robust partner ecosystem, particularly with Microsoft, Amazon, and Salesforce, and a continued focus on intelligent automation, UiPath is well-positioned to maintain its leadership in the evolving RPA and enterprise automation market. The Case for AppLovin AppLovin has solidified its leadership in mobile advertising, powered by its next-gen AI engine, Axon 2, which launched in the second quarter of 2023. Since its debut, Axon 2 has radically enhanced AppLovin's ad performance, helping to quadruple advertising spend on its platform. This explosive growth has led to an estimated $10 billion annual run rate in ad spend from gaming clients, pushing APP into the upper echelon of global ad tech firms by valuation. Axon 2's importance goes far beyond mere optimization. In a post-Identifier for Advertisers environment that disrupted mobile user acquisition strategies, Axon 2 served as a critical catalyst for recovery. While Western mobile gaming experienced stagnation in 2022, Axon 2 reignited ad-driven momentum. Though in-app purchases are seeing modest, mid-single-digit growth, AppLovin's MAX publisher base is expanding at a significantly faster rate, underscoring Axon 2's strategic advantage. Google, Microsoft and Salesforce are rapidly advancing generative AI. Microsoft integrates AI in Office via Copilot and expands Azure's AI. Google embeds AI in Workspace and enhances Vertex AI. Salesforce incorporates AI across its CRM, especially through Einstein Copilot and Data Cloud. Microsoft is also focusing on AI governance, while Google is strengthening AI security. Salesforce further refines dynamic customer experiences. While these giants focus on enterprise productivity and CRM, Applovintakes a different route, using AI to drive direct monetization in mobile advertising. How Do Zacks Estimates Compare for PATH & APP? The Zacks Consensus Estimate for UiPath's 2025 sales and EPS indicates year-over-year growth of 8.5% and 5.7%, respectively. EPS estimates have been trending flat over the past 60 days. Image Source: Zacks Investment Research The Zacks Consensus Estimate for AppLovin's 2025 sales and EPS indicates year-over-year growth of 16.3% and 85.4%, respectively. Both upward and downward EPS revisions have offset each other, keeping estimates flat over the past 60 days. Image Source: Zacks Investment Research UiPath's Valuation More Attractive Than AppLovin UiPath is trading at a forward sales multiple of 4.09X, below its 12-month median of 4.44X. AppLovin's forward sales multiple stands at 19.88X, above its median of 18.7X. Winner: UiPath UiPath emerges as the more compelling AI-driven investment. While AppLovin dazzles with Axon 2 and ad spend growth, UiPath's leadership in the fast-expanding RPA market, strong enterprise partnerships with Microsoft, Amazon, and Salesforce, and high customer retention offer long-term stability. Its subscription-based model ensures recurring revenue, and its valuation — trading at a much lower forward sales multiple than AppLovin — makes it a better value play. UiPath's enterprise focus and strategic alliances give it an edge in AI scalability and business relevance. For investors seeking sustainable, enterprise-grade AI exposure, UiPath stands out as the smarter buy. While PATH sports a Zacks Rank #1 (Strong Buy), APP carries a Zacks Rank #3 (Hold). 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 Inc. (AMZN) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Salesforce Inc. (CRM) : Free Stock Analysis Report UiPath, Inc. (PATH) : Free Stock Analysis Report AppLovin Corporation (APP) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research 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
