APP - AppLovin Remains Cheap Given The Robust Ad-Tech Growth Trends

2024-05-26 16:35:32 ET

Summary

• The robust recovery in the global advertising market is undeniable, with GOOG and META both reporting robust top/ bottom lines, contributing to APP's similarly excellent numbers.
• With many larger gaming advertisers still ramping their spend and APP entering the web advertising market in Q2'24, we can understand why the management has offered an optimistic FQ2'24 guidance.
• Readers must not forget that APP remains highly shareholder friendly, as seen in its sustained share retirement and $500M remaining in the program.
• Based on the raised consensus forward estimates, we believe that the stock remains cheap compared to its ad-tech peers, offering interested investors with an excellent upside potential.
• With APP failing to break out of the $88s, readers may consider adding after a moderate pullback to its previous trading range of between $66s and $74s for an improved margin of safety.

Applovin's Advertising Investment Thesis Remains Robust

Applovin (NASDAQ: APP ) is a SaaS company that offers advertising software solutions for mobile/ web app developers, which allows the enhancement of their app marketing and monetization globally....

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