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Applovin - AI Stock Analysis
Analysis generated April 7, 2025
Applovin Corporation (NASDAQ: APP) is a globally recognized, leading American mobile technology company that develops and acquires mobile applications. Applovin offers services in mobile advertising, monetization, and user acquisition solutions. Their software platform provides developers a unified approach to reach robust user growth and revenue generation using advanced machine learning algorithms.
Fundamental Analysis
For the last quarter, Applovin reported a revenue of $1.2 billion. This is a positive sign reflecting an increase of 10.94% compared to the previous quarter. Moreover, when compared to the same quarter last year, the revenue increased by 38.64%, suggesting that Applovin is experiencing significant year-over-year growth.
Net income for the last quarter was $434 million, representing a stellar growth of 40.15% compared to the prior quarter. Compared to the same quarter last year, net income drastically increased by 299.87%, which showcases exceptional profitability.
The EBITDA for the last quarter was $625 million, growing by 27.27% quarter-over-quarter. Furthermore, this is a 110.92% increase year-over-year, reflecting strong operational efficiency.
However, the current P/E ratio of 48.53 indicates that the stock might be overvalued, which could be seen as a bearish signal. Additionally, recent insider selling may also be viewed as a negative sign by investors.
Technical Analysis
The current stock price stands at $237.38, which represents a decrease of 12.24% compared to a month ago, indicating potential short-term concerns. Despite this, over the past year, the stock has increased by 204.14%, highlighting a positive long-term trend.
However, the stock trend currently appears bearish. The 10-day Simple Moving Average (SMA10) is $254.03, down from the previous SMA10 of $257.53. This suggests a potential downward trend in price movement.
Interestingly, the Relative Strength Index (RSI) is at 21.5, which indicates a potentially oversold bullish condition. This scenario could present a buying opportunity if the stock rebounds.
Alternative Data Analysis
Alternative data provides additional insights into the company. Applovin, according to popular job boards, has 13 open positions, down by 43% in recent months. This may indicate cost-cutting measures or efforts to improve margins, which is not an ideal sign for a growing company. Additionally, employee sentiment remains neutral.
Customer acquisition appears stable with an estimate of 29 million visitors to their webpage. Customer engagement on social media shows increased interest, with a 10% increase in Instagram followers and a 7% increase in Twitter followers over the past few months.
Lastly, the AltIndex AI score, which incorporates various data points, gives Applovin a score of 59, suggesting a hold signal.
Conclusion and Recommendation
In conclusion, Applovin showcases strong revenue and profit growth, which is promising for its future financial health. However, recent insider selling and a high P/E ratio present some risks. The stock's bearish technical indicators in the short term, coupled with decreasing job positions, add to the cautious outlook. That said, the oversold RSI could indicate a potential buying opportunity should the trend reverse. Based on these mixed signals, a prudent approach would be to hold the stock and closely monitor upcoming developments.
Disclaimer: This AI stock analysis, generated by an experimental AI tool, is for informational purposes only and not financial advice. Information is based on publicly available data and may not always be accurate or current.
