Breaking News
0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

AppLovin Stock Is A Sign Of The Times Buy

By MarketBeat.com (Jea Yu )Stock MarketsJul 02, 2021 06:20AM ET
www.investing.com/analysis/applovin-stock-is-a-sign-of-the-times-buy-200589483
AppLovin Stock Is A Sign Of The Times Buy
By MarketBeat.com (Jea Yu )   |  Jul 02, 2021 06:20AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 

Mobile app development platform Applovin Corp (NASDAQ:APP) stock is riding the wave of mobile gaming and in-app advertising. Mobile apps have become a sign of the times and continue to flourish at a tepid pace. AppLovin provides the artificial intelligence (AI) powered tools to analyze, develop, automate, manage, market, monetize, and optimize mobile gaming apps. They are here to stay and continue to grow as they are sticky and conveniently at the tip of your fingers at any moment to access.

AppLovin is benefitting from this part of the new normal. The pandemic spurred more digital migration. Post-pandemic will continue to push that trend as businesses rebound on the reopenings. The Company has over 200 mobile app games in its portfolio. The Company homepage keeps a running meter of over 7.6 billion downloads and growing. Shares originally tanked off it’s $80 IPO but has since rallied as investors become more aware of this potential powerhouse. Investors seeking to capitalize on the group of mobile apps can consider following AppLovin stock for opportunistic pullback levels to gain exposure.

Q1 Fiscal 2021 Earnings Release

On May 12, 2021, AppLovin reported its fiscal Q1 2021 results for the quarter ending April 2021. The Company reported an earnings-per-share (EPS) loss of (-$0.05) versus a profit of $0.01 in same period year ago. Revenues grew 132% year-over-year (YoY) to $603.9 million. Organic revenues rose 89% YoY.

Adjusted EBITDA rose 110% to $131 million. AppLovin CEO Adam Foroughi stated:

“We are excited to deliver record revenue in our first earnings report as a newly public company. Our record growth 1Q21 results are driven by the powerful combination of our integrated business model, incorporating software, content, and data. Additionally, in April 2021 we closed on the previously announced acquisition of app measurement leader Adjust as well as completed the acquisitions of two more top grossing games: West Game and Tornado Slots. As we continue to grow our content portfolio, gain access to data, improved the efficacy of our marketing software, we see a path to outsized growth for years to come.”

Full-Year 2021 Revenue Outlook

AppLovin raised its total revenues for fiscal 2021 to range between $2.65 billion to $2.70 billion indicating 83% YoY growth. Total adjusted EBITDA is expected between $680 million to $700 million, indicating 100% YoY growth.

Conference Call Takeaways

CEO Foroughi set the tone:

“First, we are a marketing software company that helps mobile app developers attract new users and grow their business. Our most important objective is to focus on growing our software platform, and our key business decisions always link back to this objective.”

He elaborated on the 90% YoY growth in Business Software segment. The pandemic had a “negligible” impact on its business as their audience primarily play casual games on the go. Growth in previous two quarter was driven by improvements to their machine learning engine and AXON, launched in late 2020. These two alone significantly grew its customer base and average revenue per customer. He noted the closing of the Adjust acquisition in April providing access to over 2,000 potential clients, attribution analytics products and a sales force. The Company seeks to expand its app portfolio which include over 200 games and 40 million daily active users (DAUs) utilizing 15 studios. He noted:

“Today, our apps are some of the world’s most popular mobile games, including Project Makeover, Wordscapes, Matchington Mansion, Clockmaker, Bingo Story, Final Fantasy 15 and many more. We’re able to grow these games because of our seasoned team, accretive M&A and, most importantly, our marketing expertise and cost synergies we get from marketing our apps on our software platform.”

Applovin Stock Chart
Applovin Stock Chart

APP Opportunistic Pullback Levels

Using the rifle charts on the weekly and daily time frames provides a precision view of the landscape for APP stock. The weekly rifle chart is still materializing but the rising 5-period moving average (MA) sits at the $80.92 Fibonacci (fib) level. The weekly triggered the market structure low (MSL) on the breakout out above $70.17. The market structure high (MSH) sell triggers on a breakdown under $77.59. The daily rifle chart has a make or break with the 5-period MA sloping down to $83.01 as it nears a crossover down through the 15-period MA at $82.81. The daily stochastic has formed a mini inverse pup oscillation down through the 70-band. Prudent investors can monitor for opportunistic pullback levels at the $80.92 fib, $78.72 fib, $76.24 fib, $72.60 fib, $70.33 fib, and the $65.88 fib. Upside trajectories range from the $92.53 fib up to the $112.55 level.

Original Post

AppLovin Stock Is A Sign Of The Times Buy
 

Related Articles

AppLovin Stock Is A Sign Of The Times Buy

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
or
Sign up with Email