Latest news with #TripledotStudios
Yahoo
30-07-2025
- Business
- Yahoo
1 Incredible Reason to Buy AppLovin Before Aug. 6
Key Points AppLovin just completed a deal to sell off its mobile app business to Tripledot Studios. The move should improve its balance sheet and allow the company to focus on the fast-growing advertising business. AppLovin will report second-quarter earnings on Aug. 6. 10 stocks we like better than AppLovin › AppLovin (NASDAQ: APP) was one of the best performers on the stock market last year, but the mobile app-focused adtech company still gets relatively little attention in an era when investors are squarely focused on artificial intelligence (AI). The stock jumped more than 700% last year, but its performance has been more modest this year, as investors seemed to have adjusted to the skyrocketing growth rate in its adtech business, which has emerged as the company's biggest profit driver. In fact, AppLovin is confident enough in its adtech business that it sold its mobile app game business to Tripledot Studios in a deal that closed at the end of June, right before the second quarter ended. That could signal a great buying opportunity for the stock before it reports second-quarter earnings. How the Tripledot deal could unlock value for AppLovin First, the deal will allow AppLovin and its investors to focus on just AppLovin's strongest business, adtech, which helps advertisers optimize ad placements, primarily on mobile apps, through its Axon AI technology. Second, AppLovin will receive $400 million in cash from the sale, as well as a 20% stake in Tripledot, giving it upside potential if Tripledot increases in value, which is currently at $2 billion, making the equity stake worth $400 million. It's unclear how AppLovin plans to use that cash, but it will help strengthen its balance sheet and could help it refinance its debt at a lower interest rate. Finally, the stock has a lot of upside potential in its second-quarter report if it can top its guidance. AppLovin's ad business is growing rapidly, as advertising revenue rose 71% to $1.16 billion in Q1, while revenue from its apps business declined. Its second-quarter guidance is calling for just modest sequential growth in ad revenue to $1.195 billion-$1.215 billion. If it can top that number, the stock could soar, as it's down more than a third from its peak earlier this year. 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 1,046% vs. just 183% for the S&P — that is beating the market by 863.34%!* 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 $633,452!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,083,392!* 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 July 29, 2025 Jeremy Bowman has positions in AppLovin. The Motley Fool has positions in and recommends AppLovin. The Motley Fool has a disclosure policy. 1 Incredible Reason to Buy AppLovin Before Aug. 6 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
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
Business Wire
01-07-2025
- Business
- Business Wire
AppLovin Completes Sale of Mobile Gaming Business to Tripledot Studios
PALO ALTO, Calif.--(BUSINESS WIRE)--AppLovin Corporation (NASDAQ: APP) ("AppLovin"), a leading marketing platform, today announced the successful completion of the sale of its mobile gaming business to Tripledot Studios for $400.0 million in cash, subject to closing adjustments, and equity consideration representing approximately 20% of Tripledot's fully-diluted equity at the time of closing. No promissory note was issued as part of the transaction. The transaction, which was originally announced on May 7, 2025, closed June 30, 2025, following the satisfaction of all customary closing conditions and regulatory requirements. 'We would like to extend our gratitude to our game studios who were an instrumental part of AppLovin's journey,' said Adam Foroughi, Co-founder and CEO of AppLovin. Share 'We would like to extend our gratitude to our game studios who were an instrumental part of AppLovin's journey,' said Adam Foroughi, Co-founder and CEO of AppLovin. 'Their love for mobile games fueled our growth, and we wish them continued success with Tripledot Studios. The closing of this transaction streamlines the Company to its core business and allows us to fully focus on the exciting opportunities that will shape and define the future of our company.' Under the terms of the purchase agreement, AppLovin divested its mobile gaming business, including 10 game studios and their popular mobile gaming franchises, to Tripledot Studios. The gaming studios included in the transaction are Athena Studio, Belka Games, Clipwire Games, Leyi, Lion Studios, Machine Zone, Magic Tavern, PeopleFun, Zenlife Games, and Zeroo Gravity, which collectively develop popular mobile games across various genres including Hexa Sort, Wordscapes, Clockmaker, Cooking Madness, West Game, Project Makeover and others. Aream & Co acted as lead financial advisor, and GoodGame Advisors LLC and Belzberg Capital LLC also served as financial advisors to AppLovin. Wilson Sonsini Goodrich & Rosati acted as lead counsel, and Dissmann Orth, Wolff Schultze Kieferle, and Maples Group acted as local counsel to AppLovin. About AppLovin AppLovin makes technologies that help businesses of every size connect to their ideal customers. The company provides end-to-end software and AI solutions for businesses to reach, monetize and grow their global audiences. For more information about AppLovin, visit: Source: AppLovin Corp.
Yahoo
21-06-2025
- Business
- Yahoo
Morgan Stanley Argues That Shedding 1P Games Could Enhance AppLovin's (APP) Market Value
AppLovin Corporation (NASDAQ:APP) is one of the best stocks to buy. On June 9, Morgan Stanley reiterated an Overweight rating on APP and lifted the price target to $460 from $420, noting that the company would be "more valuable without its 1P games." The analysts were bullish on AppLovin's initiative to sell its Apps segment, suggesting the move would create shareholder value while keeping future earnings steady. As reported in February, the company plans to shed its first-party mobile games division, called the Apps Segment, in the second quarter of 2025 to Tripledot Studios for $400 million in cash and $400 million in Tripledot stock. Morgan Stanley is bullish on this divestiture, even though the Apps segment generated 32% of AppLovin's revenue and 10% of EBITDA in 2024. The analysts commented that the sale would allow the company to achieve "high-margin revenue that the 1P studios spend on APP's ad network, offsetting most of the lost earnings from 1P games." A close-up of a mobile device, showing an advertiser reaching out to a consumer via a software-based platform. The tactical shift will redistribute profits "from the low multiple games business to the high multiple ad business, increasing the total value of the company." Morgan Stanley has revised its 2026 and 2027 EBITDA projections for AppLovin downward by 1%. However, the analysts are using a larger EBITDA multiple of 29x, up from the prior 26x. This update suggests a shift from the prior sum-of-the-parts valuation model, which placed a conservative 4x multiple on the Apps' EBITDA. AppLovin Corporation (NASDAQ:APP) builds software tools that help advertisers and app developers grow and monetize their content across mobile and connected TV platforms. 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 best short-term AI stock. READ NEXT: The Best and Worst Dow Stocks for the Next 12 Months and 10 Unstoppable Stocks That Could Double Your Money. Disclosure: None.
Yahoo
09-06-2025
- Business
- Yahoo
Is AppLovin a Buy Today?
AppLovin stock is up nearly 400% over the past year. Management has openly expressed interest in acquiring TikTok. The company was the target of a recent short report. 10 stocks we like better than AppLovin › AppLovin (NASDAQ: APP) stock has had a roller-coaster 2025, reaching an all-time high before being cut in half after it came under scrutiny in a short-seller report. Since then, the stock has recovered most of those losses after the advertising tech company posted blowout earnings and made a bold move to publicly bid on acquiring TikTok. Let's examine the recent news and determine whether the stock is overhyped or if its lofty valuation is justified. AppLovin recently reported its results for the first quarter of 2025, and the company did not disappoint. Total revenue rose 40% year over year to $1.48 billion, driven by its advertising segment, which matches advertisers and app publishers via auctions at a large scale and microsecond speeds. The mobile tech company has accelerated its revenue by shifting its primary focus from gaming advertising to the broader global advertising economy, which opens up an opportunity for 10 million advertisers globally, according to management. During the first quarter, the company's advertising revenue increased to $1.16 billion, representing a 71% year-over-year rise. Meanwhile, AppLovin generated $826 million in free cash flow, a key profitability metric, representing a 114% year-over-year increase. With its positive free cash flow, management has elected to repurchase its stock aggressively rather than pay down its $3.2 billion in net debt. Specifically, the company spent $1.2 billion in the first quarter, nearly $400 more than the company generated in free cash flow. Over the past three years, management has reduced its share count by 9.3%, which not only increases existing shareholders' ownership stake, but also suggests management is bullish on the company's long-term prospects. In other developments, AppLovin sold its declining mobile gaming division to Tripledot Studios for $400 million in cash, along with an estimated 20% equity stake. The deal is expected to close as early as Q2 2025, further signaling management's confidence in its strategic pivot to advertising. The most headline-grabbing move of 2025, however, wasn't AppLovin's earnings report or the sale of its gaming division; it was when the company disclosed that it is prepared to make a serious offer to acquire TikTok's global operations, should regulatory pressure force a divestiture. The bid would allow Chinese investors to retain a stake in TikTok, while AppLovin would manage its global operations. In CEO Adam Foroughi's words, AppLovin can offer a "much stronger bid than others" thanks to its technical infrastructure, monetization expertise, and real-time ad marketplace. The price tag would likely be costly for the social media platform, with a reported 1.6 billion global users generating an estimated $23 billion in revenue in 2024. It could also be a lengthy and politically fraught acquisition process. Still, the possible move is exciting for investors to dream about and could spur the next phase of growth for AppLovin, which had a recent market capitalization of $140 billion. Of course, fast-growing tech companies often attract critics, and AppLovin is no exception. Recent short reports, including one from the investigative investment company Muddy Waters Research, accused AppLovin of violating the terms of service of key platform partners, resulting in an observed 23% client churn rate in the first quarter of 2025. In an open-letter rebuttal, Foroughi addressed the claims head-on, arguing that "a few nefarious short-sellers are making false and misleading claims aimed at undermining our success." Furthermore, Foroughi called the report "littered with inaccuracies and false assertions," and emphasized that the company operates in full compliance with App Store policies, stressing that "there has been no churn" among its advertising clients. For investors, it's important to understand that companies publishing short reports typically hold short positions in the companies they investigate. This means they are financially incentivized to release negative research -- whether or not it's fully substantiated. Notably, AppLovin's stock dropped nearly $66 to $261.70 per share after the report was published in March, but has since recovered and then some to over $414 per share as of this writing. Before buying any stock, it's essential to consider its valuation -- especially with high-growth tech companies, which often trade at premium levels due to their long-term potential. AppLovin is no exception, currently trading at 56.6 times its trailing-12-month free cash flow of $2.5 billion. However, that premium appears more reasonable given that free cash flow has grown nearly 80% year over year. The stock is also trading about 33% below its peak price-to-free-cash-flow multiple, suggesting a slight discount for new investors. For growth investors who think long-term and believe in the power of scalable software and monetization, AppLovin remains a buy, regardless of whether or not TikTok is involved. 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 $669,517!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $868,615!* Now, it's worth noting Stock Advisor's total average return is 792% — a market-crushing outperformance compared to 173% 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 June 2, 2025 Collin Brantmeyer has positions in AppLovin. The Motley Fool has positions in and recommends AppLovin. The Motley Fool has a disclosure policy. Is AppLovin a Buy Today? was originally published by The Motley Fool Sign in to access your portfolio
