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Applovin - AI Stock Analysis

Analysis generated November 23, 2024

Applovin is a mobile technology company specializing in app discovery, user acquisition, and monetization. The company offers a robust platform for mobile app developers to promote their apps and games, thereby driving growth and engagement. Applovin has been involved in various strategic partnerships and acquisitions to expand its offerings and market presence.

Fundamental Analysis

Applovin reported a revenue of $1.2 billion for the last quarter, which is an increase of 10.94% compared to the previous quarter. This indicates a positive trend in revenue growth. Year-over-year, the revenue has increased by 38.64%, which is a strong indicator of sustained growth over time.

The net income for the last quarter was $434 million, showing a remarkable increase of 40.15% compared to the previous quarter. Year-over-year, net income has surged by an impressive 299.87%, underscoring significant profitability improvements.

The EBITDA for the last quarter was $625 million, representing an increase of 27.27% from the previous quarter. On a year-over-year basis, EBITDA has more than doubled, increasing by 110.92%, indicating strong operational performance.

However, the current P/E ratio stands at 97.02, which may be considered high. This could point to potential overvaluation and might be a bearish signal for some investors looking at traditional valuation metrics.

Additionally, recent insider selling activity has been noted, which might be interpreted as a bearish indicator.

Technical Analysis

Today's stock price for Applovin is $333.31, showing a significant increase of 109.10% from a month ago. This indicates a strong positive short-term trend. Year-over-year, the stock price has skyrocketed by 744.04%, suggesting strong long-term performance and investor confidence.

The trend appears bullish, with the current SMA10 at $308.70, up from the previous SMA10 of $303.77. This shows an upward trend in price movement.

The RSI is at 33.5, which indicates a neutral condition and suggests that the stock is neither overbought nor oversold at the moment.

Alternative Data Analysis

Analyzing job postings and employee sentiment, Applovin has 23 open positions, down by 26% over the last couple of months. This reduction might indicate efforts to improve margins or cut costs, which is not typically a great sign for a growing company.

The business outlook among employees at Applovin remains neutral, suggesting mixed sentiments internally.

On the customer acquisition front, Applovin has attracted approximately 35 million visitors to their webpage, up by 22% over the past couple of months. This is a bullish trend and could signal an increase in potential customers.

The company has 3,600 followers on Instagram, with a 12% increase over the past couple of months, indicating growing interest from the public. Its Twitter account has 14,000 followers, with no significant change in recent months.

Using AltIndex's AI scoring, which takes into account fundamental, technical, and alternative data, Applovin has received a score of 64, which signals a buy.

Conclusion and Recommendation

In conclusion, Applovin demonstrates strong revenue, net income, and EBITDA growth, reflecting its robust business model and market performance. However, the high P/E ratio and recent insider selling activity could be potential red flags for some investors.

The technical indicators suggest a bullish trend, both in the short and long term, supported by increasing SMA10 values and a neutral RSI.

The alternative data presents a mixed snapshot, with positive trends in customer acquisition and social media engagement but a reduction in job postings and neutral employee sentiment.

Given the overall growth metrics, technical bullish signs, and a favorable AI score, the stock could be considered a buy, albeit with caution due to the high valuation metrics and insider selling signals.

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.