sankai
Thesis
A stock investors love! Having rallied almost 350% on a 1-year basis, is the current price justified? Despite overvaluation by almost 55% based on my conservative DCF, AppLovin (NASDAQ:APP) looks like a long-term buy based on
There's No Such Thing As Too Much Love For AppLovin
Summary
- AppLovin is a dominant AdTech player with unique AI-driven platforms, strong growth, and industry-leading margins, justifying long-term optimism despite current overvaluation.
- My DCF and peer comparisons show APP is overvalued by 55%, but its robust fundamentals and market leadership support a long-term buy thesis.
- APP's software platform drives exceptional revenue growth, and management's strategic focus on AI and market expansion underpins future sustainability.
- While valuation is stretched, APP's profitability, efficient asset use, and strong liquidity make it attractive for patient, long-term investors.
Hey! I'm Arav, a second-year student at Northeastern University with a passion for Finance. I fell in love with the realm of investment at the young age of 14, and since then, I have dedicated myself to a constant journey of deepening my knowledge of Finance and exploring my interest in equities. I'm eager to learn about all domains of Finance and eventually become an expert in the field.
Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, but may initiate a beneficial Long position through a purchase of the stock, or the purchase of call options or similar derivatives in APP over the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it. I have no business relationship with any company whose stock is mentioned in this article.
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