AppLovin: S&P 500's Gift To Investors
Summary
- AppLovin remains a top S&P 500 inclusion candidate despite Friday's snub; the imminent pullback next week is a buying opportunity.
- The company's adtech business and AppDiscovery tool are driving robust revenue and earnings growth, with CY25 EBITDA estimate up to $4.2B (+80%).
- Massive $1B share buyback and accelerating free cash flow per share further enhance the stock's attractiveness and value.
- Despite volatility and index snub, AppLovin is undervalued with at least a 20% upside; I reiterate my Buy rating.
Analyst’s Disclosure:I/we have a beneficial long position in the shares of APP either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
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