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Applovin - AI Stock Analysis

Analysis generated January 29, 2025

Applovin Corporation is a leading mobile technology company providing app developers with a platform to monetize and market their mobile applications. Its platform leverages advanced machine learning algorithms to deliver personalized content recommendations, as well as targeted advertisements. Applovin’s comprehensive suite of solutions drives enhanced user acquisition, monetization, and engagement for app developers on a global scale.

Fundamental Analysis

Revenue for the last quarter was $1.2 billion. This represents an increase of 10.94% compared to the previous quarter, indicating a steady growth trend. Compared to the same quarter last year, revenue has increased by 38.64%, demonstrating strong year-over-year growth.

Net income for the last quarter was $434 million. This signifies an increase of 40.15% compared to the prior quarter, which is a robust indicator of profitability improvement. When compared to the same quarter from the previous year, net income has soared by 299.87%, suggesting impressive growth and operational efficiency.

EBITDA for the last quarter stood at $625 million. This marks a 27.27% increase over the previous quarter. Similarly, an increase of 110.92% compared to the same quarter last year underscores significant operational improvement and expanding profit margins.

The current P/E ratio is 103.95. This high multiple might suggest that the stock is overvalued and might indicate a bearish outlook. Additionally, insider selling activity in the past couple of months signals potential lack of confidence among company insiders, which could be interpreted as a negative indicator by investors.

Technical Analysis

Today's stock price is $359.62, reflecting a 7.29% increase compared to a month ago, indicative of a positive short-term trend. When viewed from a longer perspective, the stock has surged by 746.76% compared to a year ago, evidencing a strong bullish long-term trend.

The current SMA10 is $355.77, slightly higher than the previous SMA10 of $354.04. This upward movement indicates a potential continuation of the price increase. The Relative Strength Index (RSI) stands at 63.7, suggesting a neutral condition where the stock is neither overbought nor oversold.

Alternative Data Analysis

Regarding job postings and employee sentiment, Applovin has 18 open positions, down by 45% in the past couple of months. While this might indicate efforts to cut costs or improve margins, it is not an encouraging sign for a growing company. However, the business outlook among employees is neutral but has shown a 15% positive trend in the past few months, which is a promising sign.

Customer acquisition data reveals Applovin has 34 million estimated visitors to their webpage, with an increase of 21% in the last couple of months. This bullish trend suggests a potential rise in customers. Moreover, customer engagement metrics show that Applovin’s Instagram followers have increased by 11%, and Twitter followers by 8% over the past couple of months. These trends highlight growing interest and engagement in the company.

AltIndex’s AI score, which incorporates fundamental, technical, and alternative data, gives Applovin a score of 73, suggesting a 'buy' signal.

Conclusion and Recommendation

In conclusion, Applovin exhibits several positive indicators through its revenue growth, profit margins, and increasing investor interest, as evidenced by technical trends and customer engagement data. However, the high P/E ratio and insider selling activity could pose concerns regarding the stock’s valuation.

Based on the comprehensive analysis, including fundamental, technical, and alternative data, the stock appears to have robust growth momentum and investor appeal. Nevertheless, potential investors should consider both the high valuation and recent insider selling activities before making their investment decisions.

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.

The analytics provided are estimates and not a substitute for professional advice. All investments involve risks, including possible capital loss.
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