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AppLovin (APP) Stock Analysis

Written by: Christopher Wiesler

AppLovin is a Corporation specialized in building software-based platforms for mobile app developers to enhance the marketing and monetization of the developers’ apps. AppLovin was founded in 2012 and IPO’d in April 2021. The company stock has grown by 91.58% consistently over the past year.

AppLovin is valued at $15.76B USD with an intraday market Cap of $13.37B. The company’s trailing P/E ratio was 768.80, and the forward P/E ratio is 12.35, showing that the company stock has grown and has become more valuable. A high P/E ratio suggests that a company’s stock is expensive and overvalued, whereas a lower P/E ratio suggests that a company’s stock is cheap and may rise in the future. In the past 12 months, the company generated a revenue of $2.88B USD and generated a gross profit of $1.61B.

Analysts on Yahoo Finance suggest that the company stock will grow 244.20% this year and 77.30% next year. This shows that the company stock may be a worthwhile investment in the short term. The company is also projected to grow 100.30% per annum, which makes the stock a good long-term investment as well. The Beta (5Y monthly) is 1.82, which means that the stock is more volatile than average market stock.

Overall, the growth of AppLovin can be attributed to 2 factors. Firstly, the recovery of the economy after the Covid-19 pandemic has increased consumer demand and therefore resulted in a higher price for the stock, as the supply of shares is limited, and if the demand increases, the price will increase. Secondly, the increase in price shows the changing nature of the market, as firms are now relying more on technology than ever before and a huge shift towards AI is taking place. This is why the company stock has grown.

Key Takeaways:

  • The stock is projected to continue rising in the short, medium, and long-term

  • The company is projected to grow 100.30% every year for the next 5 years

  • The company generated $1.61B in profits last year

  • The increase in price represents the recovery after the Pandemic and changing market conditions


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