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Yahoo
2 days ago
- Business
- Yahoo
AppLovin Shares Jump as Revenue Continues to Surge. Is It Too Late to Buy the Stock?
Key Points AppLovin once again saw its revenue and profits soar in Q2. The company has a lot of irons in the fire to continue to drive strong growth. The stock still looks reasonably priced. 10 stocks we like better than AppLovin › AppLovin (NASDAQ: APP) once again held up to the short-seller scrutiny it's been under, with yet another quarter of surging revenue and profitability growth. The stock is now up more than 500% over the past year and more than 30% year to date. A trio of short-sellers -- Fuzzy Panda Research, Muddy Waters, and Culper Research -- have tried to cast doubt on the legitimacy and effectiveness of AppLovin's artificial intelligence (AI) adtech platform, Axon 2.0. However, the company just keeps delivering outstanding growth quarter after quarter. Meanwhile, their claims that AppLovin's software violates user privacy and installs apps on users' devices without their consent have not been met with any blowback from app store operators Alphabet or Apple. No slowdown in sight After selling its legacy app business, AppLovin is now a pure-play adtech company. In the second quarter, its revenue surged 77% to $1.26 billion. The company also continues to see strong gross margin improvement and reduced operating costs. In Q2, its gross margins improved to 87.7% from 82.9% a year ago, while it lowered its operating costs by 29%, including a 34% reduction in sales and marketing spending. This is leading to soaring profitability metrics that are growing even faster than revenue. Earnings per share (EPS) from continuing operations jumped from $0.89 a year ago to $2.39. Adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA), meanwhile, nearly doubled year over year to $1 billion. AppLovin generated $772 million in operating cash flow and $768 million in free cash flow. It ended the quarter with $2.3 billion in net debt, down from $3.2 billion in Q1, following the sale of its app business. The majority of AppLovin's revenue growth continues to come from its core gaming ad business. It said that e-commerce, which it is piloting, also performed well, but it limited new customer onboarding to focus on the upcoming launch of its self-serve platform. The company believes its self-service portal will be the foundation for its next decade of growth. It said the platform establishes the framework for automatically generated ads and that it puts the day-to-day control directly in advertisers' hands. It will open up the Axon ads manager on a referral basis at the start of October, with plans for a global public launch in the first half of 2026. It will also open up its platform to advertisers outside the U.S. for the first time at the start of October. Notably, the company said that the vast majority of its user audience is outside the U.S. It also plans to implement a paid marketing campaign next year to recruit new advertisers. Historically, the company's adtech platform has grown more by word of mouth. Looking ahead, AppLovin forecasts Q3 revenue to be between $1.32 billion and $1.34 billion, representing growth of around 59%. It projected adjusted EBITDA to come in between $1.07 billion and $1.09 billion. It expects to be able to grow its revenue by 20% to 30% a year moving forward, just from gaming. However, management is upbeat about the potential of expanding beyond its core market. Is it too late to buy the stock? Despite its more than 500% gain over the past year, AppLovin's stock is still reasonably priced. It trades at a forward price-to-earnings (P/E) ratio of about 40.5 times 2026 analyst estimates, but a one-year forward price/earnings-to-growth (PEG) ratio of just 1, with 1 being the threshold of whether a stock is considered undervalued. Meanwhile, 2026 appears to be shaping up to potentially be an exciting year. Between opening up its platform globally this fall to the launch of its self-serve platform and continuing to expand beyond gaming, AppLovin has a lot of irons in the fire to keep driving strong growth. While the short-seller scrutiny needs to continue to be monitored, I still think AppLovin's combination of growth and valuation warrants taking a position in the stock. Do the experts think AppLovin is a buy right now? The Motley Fool's expert analyst team, drawing on years of investing experience and deep analysis of thousands of stocks, leverages our proprietary Moneyball AI investing database to uncover top opportunities. They've just revealed their to buy now — did AppLovin make the list? When our Stock Advisor analyst team has a stock recommendation, it can pay to listen. After all, Stock Advisor's total average return is up 1,060% vs. just 182% for the S&P — that is beating the market by 877.64%!* Imagine if you were a Stock Advisor member when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $653,427!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,119,863!* The 10 stocks that made the cut could produce monster returns in the coming years. 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 August 4, 2025 Geoffrey Seiler has positions in Alphabet. The Motley Fool has positions in and recommends Alphabet, AppLovin, and Apple. The Motley Fool has a disclosure policy. AppLovin Shares Jump as Revenue Continues to Surge. Is It Too Late to Buy the Stock? 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
Globe and Mail
2 days ago
- Business
- Globe and Mail
AppLovin Shares Jump as Revenue Continues to Surge. Is It Too Late to Buy the Stock?
Key Points AppLovin once again saw its revenue and profits soar in Q2. The company has a lot of irons in the fire to continue to drive strong growth. The stock still looks reasonably priced. 10 stocks we like better than AppLovin › AppLovin (NASDAQ: APP) once again held up to the short-seller scrutiny it's been under, with yet another quarter of surging revenue and profitability growth. The stock is now up more than 500% over the past year and more than 30% year to date. A trio of short-sellers -- Fuzzy Panda Research, Muddy Waters, and Culper Research -- have tried to cast doubt on the legitimacy and effectiveness of AppLovin's artificial intelligence (AI) adtech platform, Axon 2.0. However, the company just keeps delivering outstanding growth quarter after quarter. Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Continue » Meanwhile, their claims that AppLovin's software violates user privacy and installs apps on users' devices without their consent have not been met with any blowback from app store operators Alphabet or Apple. No slowdown in sight After selling its legacy app business, AppLovin is now a pure-play adtech company. In the second quarter, its revenue surged 77% to $1.26 billion. The company also continues to see strong gross margin improvement and reduced operating costs. In Q2, its gross margins improved to 87.7% from 82.9% a year ago, while it lowered its operating costs by 29%, including a 34% reduction in sales and marketing spending. This is leading to soaring profitability metrics that are growing even faster than revenue. Earnings per share (EPS) from continuing operations jumped from $0.89 a year ago to $2.39. Adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA), meanwhile, nearly doubled year over year to $1 billion. AppLovin generated $772 million in operating cash flow and $768 million in free cash flow. It ended the quarter with $2.3 billion in net debt, down from $3.2 billion in Q1, following the sale of its app business. The majority of AppLovin's revenue growth continues to come from its core gaming ad business. It said that e-commerce, which it is piloting, also performed well, but it limited new customer onboarding to focus on the upcoming launch of its self-serve platform. The company believes its self-service portal will be the foundation for its next decade of growth. It said the platform establishes the framework for automatically generated ads and that it puts the day-to-day control directly in advertisers' hands. It will open up the Axon ads manager on a referral basis at the start of October, with plans for a global public launch in the first half of 2026. It will also open up its platform to advertisers outside the U.S. for the first time at the start of October. Notably, the company said that the vast majority of its user audience is outside the U.S. It also plans to implement a paid marketing campaign next year to recruit new advertisers. Historically, the company's adtech platform has grown more by word of mouth. Looking ahead, AppLovin forecasts Q3 revenue to be between $1.32 billion and $1.34 billion, representing growth of around 59%. It projected adjusted EBITDA to come in between $1.07 billion and $1.09 billion. It expects to be able to grow its revenue by 20% to 30% a year moving forward, just from gaming. However, management is upbeat about the potential of expanding beyond its core market. Is it too late to buy the stock? Despite its more than 500% gain over the past year, AppLovin's stock is still reasonably priced. It trades at a forward price-to-earnings (P/E) ratio of about 40.5 times 2026 analyst estimates, but a one-year forward price/earnings-to-growth (PEG) ratio of just 1, with 1 being the threshold of whether a stock is considered undervalued. Meanwhile, 2026 appears to be shaping up to potentially be an exciting year. Between opening up its platform globally this fall to the launch of its self-serve platform and continuing to expand beyond gaming, AppLovin has a lot of irons in the fire to keep driving strong growth. While the short-seller scrutiny needs to continue to be monitored, I still think AppLovin's combination of growth and valuation warrants taking a position in the stock. 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 10 best stocks 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 $653,427!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,119,863!* Now, it's worth noting Stock Advisor's total average return is 1,060% — a market-crushing outperformance compared to 182% 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 August 4, 2025 Geoffrey Seiler has positions in Alphabet. The Motley Fool has positions in and recommends Alphabet, AppLovin, and Apple. The Motley Fool has a disclosure policy.
Yahoo
29-03-2025
- Business
- Yahoo
AppLovin (NasdaqGS:APP) Faces Short-Seller Allegations Leading To 13% Stock Decline Over Past Week
AppLovin, an ad technology firm, recently confronted a significant market setback with its stock falling 13% last week. The downturn occurs amid ongoing legal challenges, including a class-action lawsuit and allegations of ad fraud highlighted by a Fuzzy Panda Research report. Market sentiment further eroded after Muddy Waters' short-seller report accused the company of dubious practices, compounding uncertainty around its business operations. These events, coupled with broader market declines where major indices fell due to trade tariff concerns, intensified the pressure on AppLovin, leading to its substantial price drop. Meanwhile, the company's ongoing stock buyback program reflects its attempt to navigate these headwinds. Every company has risks, and we've spotted 3 possible red flags for AppLovin you should know about. Trump has pledged to "unleash" American oil and gas and these 20 US stocks have developments that are poised to benefit. Over a three-year period, AppLovin delivered a substantial total shareholder return of 411.32%. This significant performance highlights its ability to strategically navigate market conditions, outperforming its industry peers, which witnessed a decline of 2.7% over the past year. Notable contributions to this success include robust financial results, such as Q4 2024 earnings, where revenue grew to US$1.37 billion from US$953.26 million, highlighting improved operational efficiency and profitability. The company's substantial share buyback program, repurchasing 75,657,041 shares for US$3.57 billion, also underlined a strong commitment to returning capital to its investors. AppLovin's transition from gaming advertising to the broader global advertising market has been a key factor in expanding its revenue streams. This shift, along with enhancing AI capabilities and forming strategic partnerships, like the one with MiMedia Holdings Ltd to boost platform monetization, further strengthened its market positioning. However, legal challenges, including a recent class-action lawsuit, pose potential risks that could affect investor confidence moving forward. Learn about AppLovin's historical performance here. 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. Have feedback on this article? Concerned about the content? with us directly. Alternatively, email editorial-team@ Sign in to access your portfolio
Yahoo
12-03-2025
- Business
- Yahoo
AppLovin (NasdaqGS:APP) Sees 21% Price Drop Following Class Action Lawsuit Allegations
The recent legal troubles surrounding AppLovin, including a class action lawsuit alleging securities law violations and accusations of unethical practices from Fuzzy Panda Research, have likely played a significant role in the company's 21% share price decline over the past week. These allegations raise concerns over its business practices and growth claims, notably tied to its AXON 2.0 platform. Despite the broader market's tech rally led by companies like Tesla and Nvidia following promising CPI data, AppLovin continues to navigate its challenges, diverging from the sector's positive trend. The company's buyback program and solid fourth-quarter earnings seem overshadowed by legal and ethical scrutiny, contributing to the negative sentiment impacting its share price. As the Nasdaq rose with favorable inflation reports and a resurgence among other tech stocks, AppLovin stands out with its steep price fall amidst these contrasting market dynamics. Gain insight into the risks facing AppLovin and how they might influence its performance—click here to read more. Searching for a Fresh Perspective? Trump's latest tariffs commencing in March 2025 are putting pressure on the stock market. Discover which defensive stocks and companies with strong pricing power and economic moats are the best positioned to withstand the trade war. Over the recent three-year period, AppLovin has delivered a total shareholder return of 460.84%, a remarkable performance when considering the challenges it has faced. Notably, this outstrips both the US market and the US software industry over the past year. A key factor in its longer-term success has been significant earnings growth, with profits increasing substantially over the past year, driven by robust revenue growth and expanding profit margins. Enhancements to their AppDiscovery platform with advanced AI in August 2023 may also have positively impacted its performance efficiency. Additionally, AppLovin's buyback strategy has played a role, particularly with buyback programs from October 2024 to February 2025 reducing the number of outstanding shares significantly. Furthermore, the company's inclusion in the NASDAQ-100 Index in November 2024 provided a significant boost to its market profile, attracting broader investor interest during this period. These developments collectively reflect significant influences on AppLovin's impressive long-term returns. Have a stake in AppLovin? Integrate your holdings into Simply Wall St's portfolio for notifications and detailed stock reports. 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. Have feedback on this article? Concerned about the content? with us directly. Alternatively, email editorial-team@ Sign in to access your portfolio
Yahoo
07-03-2025
- Business
- Yahoo
AppLovin (NasdaqGS:APP) Faces Class Action Amid Allegations Of Ad Fraud And Unethical Practices
AppLovin has experienced an 18.99% decline in its share price over the last week, coinciding with serious legal and ethical challenges. A class action lawsuit was filed against AppLovin and its officers, alleging misleading financial disclosures and potentially fraudulent practices related to its AXON 2.0 platform and AI technologies. Furthermore, a report by Fuzzy Panda Research accused the company of ad fraud and unethical data practices, exacerbating concerns and contributing to the stock's decline. These issues arose amid broader market challenges, with major indexes like the Nasdaq Composite facing significant weekly losses due to global economic concerns and tariff uncertainties. The overall 2.7% market drop has influenced tech stocks, including AppLovin, as investor sentiment shifts in response to economic and policy uncertainties. The company's legal troubles, coupled with unfavorable market conditions, have placed additional pressure on its share value this past week. Click here to discover the nuances of AppLovin with our detailed analytical report. Over the past three years, AppLovin Corporation has achieved a very large total return of 459.19%, reflecting impressive gains for its shareholders. This remarkable performance is underscored by the company's earnings surge, with a staggering growth of 344.3% over the past year alone, significantly outpacing the software industry's average. Recent inclusion in the NASDAQ-100 Index has helped enhance AppLovin's market recognition, further boosting investor interest. Additionally, AppLovin's ongoing share buyback program, which saw the repurchase of 19.99% of total shares, has actively contributed to its positive trajectory. However, AppLovin's journey hasn't been without challenges. The company is currently dealing with a class action lawsuit filed on March 6, 2025, alleging misconduct in financial disclosures. Concerns about ad fraud further cloud AppLovin's reputation, posing potential risks to its market standing. Nevertheless, robust earnings reports, including a Q4 2024 net income of US$599.2 million, continue to demonstrate the company's underlying financial strength despite these hurdles. Analyze AppLovin's fair value against its market price in our detailed valuation report—access it here. Assess the potential risks impacting AppLovin's growth trajectory—explore our risk evaluation report. Is AppLovin part of your investment strategy? Use Simply Wall St to consolidate your holdings into a portfolio and gain insights with our comprehensive analysis tools. 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. Have feedback on this article? Concerned about the content? with us directly. Alternatively, email editorial-team@
