AppLovin Shares Soar as Artificial Intelligence (AI) Drives Huge Revenue Surge. Up Nearly 400% in the Past Year, Is It Too Late to Buy the Stock?
From Nasdaq: 2024-05-14 06:20:00
Shares of AppLovin (NASDAQ: APP) surged after reporting a 48% increase in revenue to $1.06 billion in Q1. The company’s success is driven by its AI-based advertising technology, Axon 2, leading to significant growth in software platform revenue, net income, and EBITDA. AppLovin plans to expand into web-based marketing and e-commerce.
AppLovin’s mobile gaming success with Axon 2 has attracted new customers and expanded its reach beyond gaming apps. The company sees continued growth potential with its self-learning AI technology, aiming for 20-30% software platform growth long term. Despite recent gains, AppLovin’s valuation multiples remain attractive, making it a promising growth stock.
AppLovin’s transformative AI technology and long growth runway suggest it’s not too late to invest. Despite a 400% rise in the past year, the stock remains reasonably priced with strong upside potential. Investors can consider AppLovin for long-term growth, as it continues to innovate and expand its market presence in advertising technology.
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