APPLOVIN CORP (NASDAQ:APP) is a high-growth stock with strong profitability and reasonable valuation, making it a candidate for investors seeking growth at a sensible price.
Over the past six months, AppLovin has been a great trade. While the S&P 500 was flat, the stock price has climbed by 8.9% to $368.04 per share. This was partly due to its solid quarterly results, and the run-up might have investors contemplating their next move.
Software is rapidly reducing operating expenses for businesses. In the past, the undeniable tailwinds fueling SaaS companies led to lofty valuation multiples that made it easier to raise capital.
But this was a double-edged sword as the high prices exposed them to big drawdowns, and unfortunately, the industry has tumbled by 11.9% over the last six months. This drop was much worse than the S&P 500’s 1.6% fall.
The Benzinga Stock Whisper Index highlights five stocks seeing increased interest from readers during the week and a look at the potential catalysts driving the attention.
The stocks in this article have caught Wall Street’s attention in a big way, with price targets implying returns above 20%.
But investors should take these forecasts with a grain of salt because analysts typically say nice things about companies so their firms can win business in other product lines like M&A advisory.
Culper Research issued a short report on AppLovin on Thursday, alleging the advertising technology company poses national security risks because of its potential ties to China.
While profitability is essential, it doesn’t guarantee long-term success.
Some companies that rest on their margins will lose ground as competition intensifies - as Jeff Bezos said, "Your margin is my opportunity".
AppLovin's S&P 500 exclusion just hit the stock hard. However, analysts at Morgan Stanley remain bullish, announcing a price target increase on the same day.
Shares of mobile app advertising platform AppLovin (NASDAQ: APP)
fell 5.6% in the morning session after the company wasn't added to the S&P 500 Index following the quarterly rebalancing.
Applovin shares fell after the company was excluded from the S&P 500. The drop comes as analysts are divided over the company's high valuation and growth.
Mobile app advertising platform AppLovin (NASDAQ: APP) exceeded the market’s revenue expectations in Q1 CY2025, but sales rose 40.3% year on year to $1.48 billion. Its non-GAAP EPS of $2.38 per share was 21.8% above analysts’ consensus estimates.
