Kim Bolton AppLovin Corporation APP-Q HOLD Sep 10, 2025

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.

Helps companies advertise on mobile videogames. Their software and AI solutions are untouchable; they basically have no competition. Growth is super, generating $10 billion two years ago and is now $120 billion. Yes, is richly valued, but still a buy.

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. 
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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.

Index 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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Volatile, but enjoys amazing growth with EPS jumping from under $1 in 2023 to $4.50 in 2025 and $9 expected this year. PE is expected at 41x in 2026, but given growth this could be cheap.