Applevin NASDAQ: AppOne of the hottest shares in the market in 2024, just received another fantastic quarter. Within two days after the profit issued, the shares of the shares increased 34%. As of the closure of February 14, the return of technology shares over the past 52 weeks is almost 1000%. So what to make from this rapid reserve? Is there a significant place for launch, or does its value maximize its maximum? I will break what allowed promotions to perform so well, and I will give my view of this name.
Applovin: Revenues show that this Ad-Tech Train is completely steam
Applovin today
As of 04:00 on the East
- 52-week range
- $ 54.50
▼
$ 525.15
- P/e ratio.
- 108.85
- Value is valuable
- $ 430.41
In the 4th quarter of 2024, Applovin demonstrated high revenue growth by 44%. The total sales amounted to a little less than 1.4 billion dollars, which is about 110 million dollars higher than Wall Stretge expected. The company’s licentious profit per share (EPS) was more than tripled and was much higher than expectations.
For Applovin, it is especially important to look at the income from the company’s advertising. The company sells the rest of its business. The growth was extremely impressive at 73%, that acceleration from 66% of growth in the third quarter of 2024. The margin of the company continued to grow a lot. Its adjusted profits to interest, taxes, depreciation and depreciation (EBITDA) increased to 62%. This is an increase by 1200 basic points from 4 quarter of 2023.
What does Wall Stest say: price goals are growing more than shares
The answer of the analysts of Wall -Strite was very positive. Six analysts tracked by Marketbeat raised their targets on average by 41%. In general, their goals are on average up to 558 dollars per share. Compared to the company’s closure price of February 14, 510 US dollars, this implies more than 9% of the growth of shares. This may not sound much, but it is important to note that the average target price of these analysts showed only 5% growth before the profit release. This demonstrates that if a company can continue to impress, price goals can continue to grow.
What is next for Appleivin, and its success is ready to continue?
Since Applovin is now trading with a high sky, forward, profit price (p/e), multiple of 64x, it is important to analyze what it retains in the future. Construction initiatives must be implemented to support this high plural and allow the price of shares to continue to grow.
Price Applovin Co. (App) for Wednesday, February 19, 1925
Applovin traditionally clearly worked in the space of mobile games. The company helps the developers of mobile games advertise their games in other mobile games. The goal is to make the players who are currently playing the game are advertised in another game. This is good for Appleivin, but it is a very small piece of the common advertising market. Now the company began to advertise e -commerce.
Applovin said that not playing advertisers performed well and seized festive expenses for advertising dollars. It also said that in an advertising that is not connected with the consumer, progress has been achieved. The company’s management said: “Early pilots showed positive results for a number of advertisers, assuming that any business in any vertical can use the power of our platform.” The expansion of Applovin into new verticals provides an important opportunity with a large amount of unused potential. You. The company is “very confident” that e -commerce will significantly increase income in 2025, signaling expectations for strong progress this year.
Another smart step in the company is to sell its business development business, which had slow growth and lower margin than its advertising segment. This sale allows the company to focus on its main income and strengthen its experience.
This is important because the company should compete with AI Advertising Juggerenauts, such as Meta Platforms NASDAQ: metField
Finally, the company determines the priority of growth without a significant increase in the number of personnel. In 2025, he wants to launch a self -service monitoring panel that works from AI to manage customer adaptation and customer service. This can not only allow the company to grow faster, having the opportunity on board more customers, but can also help increase the margin. These initiatives can allow Applovin to continue their success if it is performed properly.
Nevertheless, it is possible that Appleivin may face a huge drop in the price of shares, as what happened to the trading table NASDAQ: TTD recently. The fantastic performance of the company means that the bar continues to be established. If he slides one quarter, because he seeks to introduce these big changes, the market can punish it strongly. Nevertheless, in my opinion, Appleivin does what is needed to carry out the shares of very long -term.
Before considering Appleivin, you will want to hear this.
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