Opinions Stockchase Insights
AppLovin CorporationAPPBUYAug 08, 2025
Stockchase InsightsStock price when the opinion was issued
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Premium contentIn the last quarter, the company reported 3.24 USD per share, beating the 2.95 USD estimate by 9.89%. Revenue for the same period reached 1.66 B USD, despite the estimate of 1.61 B USD. For the next quarter, analysts expect 3.13 USD in earnings per share and 1.70 B USD in revenue. Social media mentions are up 746% in the past 24h.
Their extreme valuation has compressed so much. Will see strength in ads, gaming and e-commerce. The street's earnings estimate is very high, so Cadence has to beat that. Can free cash flow come in above $3 billion? Are in an uncertain environment. That need a super report to restore bullish sentiment.
Joe TerranovaUp 108% last year, though weakened in recent months. Trades at 43x PE. Has great growth and is very profitable. They have no competitors. Revenue tripled over the last 4 years while revenue climbed from nothing to $9.37 EPS. Growth will continue, maybe accelerate at 37% revenue growth and 56% earnings growth.
The stock is down 4% today. There was a lawsuit filed relating to the big decline earlier this year, but we would not consider this to be of any significance. The stock has had a huge run, up 133% in six months. We would view the dip as a correction. Risks and volatility exists here, but we would be willing to buy today.
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12-month price target of $620. Analysts are having a hard time keeping up with price targets, because everything is dramatically changing with AI every day -- new relationships, new innovations. This one is about global advertising app monetization. $190B market cap right now.
Kim BoltonIndex inclusion is quite positive in the short term, but the impact tends to fade over time. Still, the likely benefit is credibility for APP, especially after this year's intense short seller attacks. Index buying will now be ongoing, and non-index managers will still have to watch it more closely as if it moves they will potentially lag index moves (if they do not own it). Liquidity will increase and volatility 'potentially' could decrease. There is still a big debate on the stock as to whether it is the next-big-thing or a smoke-and-mirrors show. The numbers are excellent, no doubt, and if they can be sustained we think the stock does very well.
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Really likes it, got in after earnings came out. Helps mobile app developers to build apps and monetize them. Also provides direction to interested advertisers. 12-month price target of $495. Quite a bit of volatility, as it's a favourite with the options traders.
Kim Bolton
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.
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