The Rise and Resilience of AppLovin
Ritholtz Wealth Management’s Josh Brown is considering a stock sensation that has soared nearly twofold since the year began.
On a recent podcast episode, Brown championed his investment rationale for AppLovin Corp (NASDAQ: APP).
Having gone public around three years back in April 2021 at $80 per share, AppLovin’s valuation at approximately $25 billion took a tumble to under $10 per share in late 2022, before staging a strong comeback in 2023. Its upward trajectory has accelerated notably in 2024, with a staggering 93% increase year-to-date.
Brown underlined AppLovin as the preeminent performer in the Russell 1000 Index, attesting to its substantial market cap growth.
While Brown perceives the stock as an attractive buy opportunity, he is strategically awaiting a retracement to the low $70s boundary before making his move.
Analysts foresee a 27% earnings surge in 2024, propelled by AppLovin’s prowess in the realm of AI, with the company showcasing record-high operating margins of 28% in the latest quarter.
Articulating the workings of AppLovin, Brown accentuated the firm’s unique AI ad platform that drives significant revenue streams through app development. He painted a vivid picture of AppLovin as a pivotal player in the app advertising landscape.
AppLovin shares were recently valued at $76.81, marking a marginal uptick at the time of writing.