If you’re looking for a stock with a stellar performance thus far in 2024, look no further than AppLovin (Nasdaq: APP). AppLovin shares are up over 116% year-to-date, and there’s a strong argument that they’ll continue to head for the top.
On the other hand, your goal as an investor is to buy assets when the price is low and sell them when the price is high. So it makes sense if you’re apprehensive about purchasing a stock that has more than doubled in value since the start of the year.
But AppLovin may be worth the investment even after such monumental growth. We’ll analyze the stock below to determine if you should buy, sell, or hold it.
Key Points
- The company is growing fast in today’s mobile-first environment.
- AppLovin has generated impressive financial results as of late.
- Analysts expect strong growth out of the stock. ]
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AppLovin Stock Is Up Over 100%. Should You Buy It?
AppLovin is an in-app advertising platform that helps application owners grow their brands. And it has been overwhelmingly successful in doing so. As the company continues to grow, its stock price is following, and that growth has been monumental. As mentioned above, the stock is up over 114% year-to-date, and there could be significantly more growth ahead.
AppLovin Is Growing Fast
- Going Mobile: The world is increasingly going mobile. Whether you want to order food, connect with a long-lost family member, or plan a vacation, there’s an app for that. And most apps host in-app advertising. Those that don’t host in-app advertising will likely use it to grow their audience. So with AppLovin centering its business around in-app ads, it only makes sense that the company is benefiting from today’s mobile-first environment.
- Software Platform Growth: As the world continues to become increasingly mobile, more and more contributors, business owners, and game developers need software to build, monetize, and publish mobile applications. As such, AppLovin’s software platform is growing quickly.
- Billions of Downloads: AppLovin’s in-app ads helped lead to more than 2 billion app downloads in the last year. It’s hard to argue with that level of success.
- Reach: AppLovin’s ecosystem reaches 700 million daily active users — and that number will likely continue to grow.
AppLovin Earnings Have Been Impressive
Everything above it is impressive, but it doesn’t matter if it doesn’t all equate to dollars and cents. The good news is that AppLovin’s earnings have been impressive as of late. In the most recent quarter, the company generated $1.06 billion in revenue, representing a nearly 50% year-over-year increase.
Profitability was also strong. Net income came in at $236.18 million, up over 5,300% year-over-year, and earnings per share were up 6,800% at $0.67. The earnings report was so impressive that no matter where you looked, you likely saw green. And that growth is expected to continue. In fact, AppLovin expects to generate between $4.2 and $4.3 billion in revenue in 2024.
What Do Analysts Think About AppLovin?
Rather than focusing on highly speculative opinions and data, I like to look into what analysts think about the stocks I’m interested in. So what do the analysts think about AppLovin?
10 analysts have shared opinions about AppLovin. Nine of those analysts rate the stock a Buy, while one rates it a Hold. That gives AppLovin stock a “Strong Buy” consensus rating. Price targets range from $97 to $114, with a consensus of $101.50. So, regardless of which analyst you follow, they all point to gains ahead, and on average, the consensus represents a more than 21% upside potential.
Should You Buy, Sell, or Hold AppLovin Stock?
There are no sure things in the stock market. Companies that seem like they’re doing amazing can fail, and those that seem like they’re performing poorly can come from nowhere and succeed. With that said and based on everything I’m seeing, I believe that AppLovin is as close to a sure thing as possible on Wall Street.
No matter what metric you look at, from revenue to earnings, margin growth, and more, you’ll find positive data to consider. Beyond a sea of positive data, the company seems to be in the right industry at the right time, capitalizing on the mobile-first direction the world seems to be heading in. And I’m not the only one with such a bullish opinion. Wall Street analysts have a positive opinion of AppLovin too, making the stock one that’s hard to ignore.
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