Stockchase Opinions

Jim Cramer - Mad Money AppLovin Corporation APP-Q RISKY Jun 23, 2021

They make software tools for mobile app developers. When they IPO'd in April, it was a dud. Within a month, it tumbled below $50, but recently the market has embraced tech stocks again, so this rebounded to $81. They have a lot going for it. They now have 200 apps including popular mobile games like Project Makeover and Bingo Story, with over 40 million daily active users, plus tech tools like a monetization platform for app developers and a machine-learning platform. They recently bought a company that mobile advertisers track the effectiveness of their marketing campaigns. Their various businesses synergize each other. Further, they acquire mobile games often and synergize well. It's a play on a rapidly growing segment of the economy. 2018-2020, they boasted 73% annual compound revenue growth. Their third-party software business grows at 90%. Caveat: The stock isn't cheap, and IPO offered few shares, so this will get hammered when the lock-up period ends, but that's a buying opportunity. Leave room to add on weakness.
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BUY

At a 52-week high, but he sees more upside to the November high of $111.

BUY

Rounded bottom, with pullback would recommend investing. 

WAIT

Great run, and that's when you have to be careful that you're not chasing a stock at its highs. Could pull back. If you look at a chart, sometimes you see an upward trajectory and then a major push up at the tail end ("too good to be true"). And that's where this stock is.

He has no problem owning, stock's in the right sector, but would want to buy at 10-15% discount from today.

RISKY

It will join the Nasdaq. They have 1.4 billion users, a massive base, so it will be around for years to come. They are involved in advertising for apps. Beware: this is a highly volatile stock.

RISKY

Earnings of $430 million, beating the $319 million projected. It has a loved AI platform. Shares are up 612% this year.

WATCH

It sank over 14% because the street expected it to join the S&P, something many traders were gambling on. An early-stage e-commerce play that could be wildly successful. They're so good with their mobile-gaming technology that they're going all in with videogame ads through free videogames. There could be something big here.

BUY

It's keeping going up from momentum.

BUY

Is about to take out its all-time high from December. Recommended it before.

BUY

A great quarter with remarkable revenue growth that will continue.

DON'T BUY

Is -18% so far this week. If you hold it, ask what is the journey in your ownership of this stock. He entered this at $76 last summer. They had a parabolic move and obviously, he's unhappy with the recent downward move. It reported Feb. 12, made a new high on Feb. 13, then unwound after that. He predicted institutional selling, which is happening now. Rising volumes may lead to a near-term bottom, and will likely go sideways.