Jim Cramer - Mad Money AppLovin Corporation APP-Q BUY Jul 14, 2025

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.

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

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.

It's keeping going up from momentum.

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

A great quarter with remarkable revenue growth that will continue.

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.

Is sideways for several months. They report in early August; see what the revenue growth slowdown will be, which the market expects to slow. Is high beta.

The quarter was very strong with very good growth and exceptional margins. Buybacks continue and EPS growth of more than 50% is expected next year. The net margin here is the highest we have seen. Its rule of 40 (sales growth and net margin) is well north of 100. The numbers are so good many investors simply do not believe it is possible. The biggest flag in the quarter was a big reduction in R&D expenses. This may catch up to the company down the road, but right now it is truly firing on all cyclinders. We like it, but it is a stock that can swing $100 in a week, and not for everyone, cleary. But we think it is going to go higher. The short sellers have gone quiet, and the short position is only 4.1% today. 
Unlock Premium - Try 5i Free