AppLovin: It's About The Network Effect
Summary
- AppLovin is not a game publisher, but a software platform enabling mobile gaming developers to reach a highly engaged and interested audience.
- The most effective form of app discovery is not through app stores anymore but other apps.
- AppLovin created a flywheel model benefiting consumers, developers, and its revenue growth rate and cash flow generating abilities.
- AppLovin's strategy works. In 2020, AppLovin was one of the leading publishers behind Voodoo in mobile games.
- AppLovin is valued somewhere between a classic game publisher like Zynga and a software platform like Unity. I tend to value them more like a software platform.
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I wrote this piece for educational purposes, and I'm currently not planning on initiating a position in this company.
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