{"id":46246,"date":"2025-12-23T11:35:06","date_gmt":"2025-12-23T11:35:06","guid":{"rendered":"https:\/\/quickassetsmarket.com\/index.php\/2025\/12\/23\/applovin-stock-had-another-great-year-does-it-have-room-to-run\/"},"modified":"2025-12-23T11:35:06","modified_gmt":"2025-12-23T11:35:06","slug":"applovin-stock-had-another-great-year-does-it-have-room-to-run","status":"publish","type":"post","link":"https:\/\/quickassetsmarket.com\/index.php\/2025\/12\/23\/applovin-stock-had-another-great-year-does-it-have-room-to-run\/","title":{"rendered":"AppLovin stock had another great year: does it have room to run?"},"content":{"rendered":"
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AppLovin stock price has had a strong performance this year, continuing a bull run that started a few years ago when it was trading at $9.20. It has jumped to $720, giving it a market capitalization of over $243 billion, up sharply from less than $1 billion. So, will this advertising company continue its bull run?<\/p>\n

AppLovin stock has surged as its growth has accelerated <\/h2>\n

AppLovin is a top company in the technology and advertising industry, where it provides companies with tools for advertising, monetizing, analytics, and publishing. <\/p>\n

The company\u2019s business has done well in the past few years as the advertising industry maintains its resilience and revenue growth continues.<\/p>\n

Data shows that its annual revenue moved from $483 million in 2018 to $4.7 billion, and Wall Street analysts believe that it has more growth to run.<\/p>\n

The average estimate<\/a> among analysts is that its revenue will jump to $5.75 billion this year and $7.8 billion in 2026.<\/p>\n

Most importantly, its earnings per share (EPS) is expected to move from $4.53 in 2024 to $9.35 this year and $14.5 in the coming year. Its real numbers will likely be much higher than estimates, as it has a long record of beating estimates.<\/p>\n

The most recent results showed that AppLovin\u2019s revenue jumped by 68% in the third quarter of the year to $1.41 billion, with its net income from continuing operations rising by 93% to $836 million.<\/p>\n

Valuation concerns remain<\/h2>\n

AppLovin stock price surge has caught many investors by surprise, with the most notable ones being Muddy Waters, which published a short report. It accused the company of overstating its revenue and violating the terms of service by companies like Google and Meta Platforms. This report led to an SEC investigation<\/a> on these practices.<\/p>\n

The stock has thrived since that report came out in 2024. Still, this surge has led to concerns about the company\u2019s valuation<\/a>, which has extended.<\/p>\n

Data compiled by Seeking Alpha shows that it has a valuation grade of D+. This valuation is based on the view that it has a forward PE ratio of 87, much higher than the sector median of 24. <\/p>\n

The valuation multiple is higher than the five-year average of 33. It is also much higher than other faster-growing companies like Nvidia.<\/p>\n

Meanwhile, the forward EV-to-EBITDA multiple of 61, which is higher than the sector median of 20. That is a sign that the company is priced to perfection, meaning that it needs to continue beating analysts’ estimates by far.<\/p>\n

APP valuation metrics | Source: Seeking Alpha<\/em><\/figcaption><\/figure>\n

Another way to look at the company\u2019s valuation is to use the rule-of-40 approach, which looks at a company’s growth and its margins. In this case, the company\u2019s forward revenue growth is 33%, while its net income margin is 44%, giving it a rule-of-40 multiple of 77%.<\/p>\n

Therefore, while the P\/E multiple is higher than that of other companies, the rule-of-40 multiple means that it is sending mixed signals.<\/p>\n

AppLovin share price technical analysis <\/h2>\n
APP stock chart | Source: TradingView<\/em><\/figcaption><\/figure>\n

The daily timeframe chart shows that the APP stock price has been in a strong uptrend in the past few months and is now trading at $725, a few points below the all-time high of $742.<\/p>\n

It has remained above the 50-day and 100-day Exponential Moving Averages (EMA), a sign that bulls are in control.<\/p>\n

The stock has formed a double-top pattern at $725 and a neckline at $490, meaning it may retreat in the coming weeks. <\/p>\n

However, a closer look shows that it may be forming an inverse head-and-shoulders pattern, which is a common bullish reversal sign.<\/p>\n

Therefore, the stock may keep rising if it moves above the neckline at $725. A move above that level will point to more gains, potentially to $800.<\/p>\n

READ MORE: Cramer recommends trimming exposure to AppLovin stock ahead of S&P 500 inclusion<\/a><\/p>\n

The post AppLovin stock had another great year: does it have room to run?<\/a> appeared first on Invezz<\/a><\/p>\n

<\/p>\n","protected":false},"excerpt":{"rendered":"

AppLovin stock price has had a strong performance this year, continuing a bull run that started a few years ago when it was trading at $9.20. It has jumped to $720, giving it a market capitalization of over $243 billion, up sharply from less than $1 billion. So, will this advertising company continue its bull <\/p>\n","protected":false},"author":1,"featured_media":46247,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4],"tags":[],"class_list":{"0":"post-46246","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-world"},"_links":{"self":[{"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/posts\/46246","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/comments?post=46246"}],"version-history":[{"count":0,"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/posts\/46246\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/media\/46247"}],"wp:attachment":[{"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/media?parent=46246"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/categories?post=46246"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/tags?post=46246"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}