IB Net Payout Yields Model

Invest like me - only at Covestor.com

AppLovin: A Lot To Love Now

By -

 


  • AppLovin's stock has dropped significantly from its peak due to fears and short attacks.
  • The company excels in AI advertising for mobile games, with ad revenues surging 73% in Q4 2024, and is expanding into e-commerce and connected TV ad markets.
  • AppLovin's efficiency is notable, with a 62% adjusted EBITDA margin and $2.1 billion in free cash flow, before divesting the Apps business.
  • Despite short-seller concerns, the stock remains a promising AI ad tech company, trading at sub 20x EPS targets on a gap close to $175.
AppLovin Corporation (NASDAQ:APP) is a prime example of how good stocks with explosive gains shouldn't be chased. The stock soared after reporting great results for 2024 and guiding up Q1 '25 results, sending AppLovin to a record high, but the stock is now down over $300 from the peak due to fears, short attacks and economic fears. My investment thesis is ultra-Bullish on the stock due to the e-commerce advertising opportunity, especially on a dip to close the gap to $175.

Read the full article on Seeking Alpha. 

Disclosure: No position mentioned. Please review the disclaimer page for more details. 


Comments

Post a Comment

Popular posts from this blog

Occidental: Still Producing Too Much Oil

By -
Image
Though oil continues plunging, the oil giants continue producing more. For Q4, Occidental Petroleum (OXY) had roughly flat production. The worst part is that OXY plans to grow production by 2% to 4% in 2016. The stock has held up somewhat strong, but the inability to turn off the spigot remains troubling. Disclosure: No positions mentioned. Please review the disclaimer page for more details. 
Read more

ChargePoint: Low Quality Beat

By -
Image
  ChargePoint beat FQ2'22 revenue estimates, but the losses are mounting. The company guided up FY22 numbers partly due to acquisitions. The stock still trades at an estimated 21x FY23 number leaving limited upside for the stock and reinforcing why venture funds sold 13.8 million shares. Looking for a portfolio of ideas like this one? Members of Out Fox The Street get exclusive access to our model portfolio.  Learn More » After  solid FQ2'22 earnings ,  ChargePoint Holdings  ( CHPT ) has seen a nice bump in the stock. Now investors have to confront the valuation divide and deal with the past insider sales likely leading to future sales on any stock rallies. My  investment thesis  remains very Bearish on the EV charging station stock on any rallies into the mid-$20s. Read the full article on Seeking Alpha.  Disclosure: No position mentioned. Please review the disclaimer page for more details.  Update - Sept. 8 Be cautious when analysts strugg...
Read more

Baidu: Historical Support At $80

By -
Image
Updated - Nov. 15, 2024 Despite leadership in AI and robotaxis in China, Baidu trades right back down to historical support around $80. The stock has now dipped $30 following the volatile move on hope for the Chinese government to fully stimulate the economy.  Update - Aug. 22, 2024 Baidu didn't report anything impressive from robotaxis or AI yet during Q2. The big robotaxi ramp up in Wuhan hasn't started yet. The stock did hold the key $80 support level.  Q2 Non-GAAP EPADS of $2.89 beats by $0.29. Revenue of $4.67B (flat Y/Y) misses by $70M. Adjusted EBITDA was $1.26 billion and adjusted EBITDA margin was 27%.  Adjusted EBITDA for Baidu Core was $1.19 billion and adjusted EBITDA margin for Baidu Core was 32%. Free cash flow was $862 million, and free cash flow excluding iQIYI was $810 million. Original article posted on Aug. 18 Baidu trades at levels first seen in 2011 despite strong growth catalysts. The Chinese search leader will report Q2 earnings on August 22, reveal...
Read more