APP Stock Recent News

APP's 34X forward P/E may look steep, but strong margins and AXON's ad spend scale help justify the premium.

After hitting an all-time high of $525.15 in February, AppLovin Corp.'s (NASDAQ: APP) share price tumbled more than 35% due to a pending class action lawsuit and to short seller reports.

Strong labor data and easing geopolitical tensions lift markets - here are 5 high-ROE stocks poised to benefit now.

The technology sector continues to be one of the best places to invest for the long term. Let's look at three stocks in the sector showing breakout growth that investors might want to consider buying now and holding for the next decade.

AppLovin's 2024 revenue surged 43% to $4.71 billion, with net income jumping 343% to $1.58 billion. Advertising revenue reached $3.22 billion in 2024, up 75% year-over-year, contributing 90% of EBITDA with a 76% margin. Free cash flow doubled to $2.07 billion, representing 44% of revenue, while adjusted EBITDA hit $2.72 billion with 58% margin.

AppLovin's AI-driven AXON platform delivers superior ad targeting and monetization, creating a sustainable competitive advantage in mobile advertising, especially gaming. The company's transition to a software platform model, with high-margin recurring revenue, drives profitability and customer stickiness through integrated MAX and AppDiscovery tools. APP stock is undervalued, offering a potential 43.4% upside, as strong revenue growth, operational efficiency, and attractive valuation metrics outpace sector peers.

APP's AI-driven push into CTV and digital commerce boosts ad growth, while SPOT leans on engagement to deepen its moat.

Software stock AppLovin Corp (NASDAQ:APP) has fallen sharply since its early-June peak , down 12.2% since the start of the month.

AppLovin's Q1 results were outstanding, with 40% YoY revenue growth and 81%+ EBITDA margins, driven by the scalable Ads business and AXON platform. The company's expansion into web-based advertising and development of a self-service platform opens up a massive, underpenetrated market for future growth. While not cheap, the premium valuation is supported by immense free cash flow, aggressive share buybacks, and explosive EPS growth that should outpace market expectations.

You don't need a lot of money to invest, especially now that so many brokers offer commission-free stock trading and no account minimums. If you have $1,000 saved, you could start to build a portfolio with a few high-quality companies.