Stock Price & Analysis

Based on the provided data and recent market activity, here's a concise analysis of APP (AppLovin) stock:

Technical Analysis

The stock has shown significant volatility with a recent sharp decline from $456.76 to $415.31 on February 21st, representing a -7.71% drop during regular market hours. The current price action suggests a potential short-term correction phase after the stock's impressive 900% gain over the past year.

Fundamental Strengths

• Strong Q4 2024 performance with revenue jumping 44% to $1.37 billion
• Impressive EPS growth from $0.49 to $1.73 year-over-year
• Solid free cash flow generation of $695 million
• Strategic sale of App business for $900 million to become pure-play adtech company

Key Risks

• Trading at a forward P/E of over 65x 2025 estimates
• High valuation premium compared to industry average
• Recent significant price decline could signal profit-taking
• Net debt position of $2.8 billion

Recommendation Given the recent sharp decline and elevated valuation multiples, investors should SELL APP stock at current levels. While the company's fundamentals remain strong, the risk-reward ratio appears unfavorable after the massive rally. The stock may need time to consolidate and establish new support levels before presenting a better entry opportunity.

Based on the provided data and context, I'll analyze APP's price prediction for 2025:

Technical Analysis

The stock is currently trading at $415.31 after a significant -7.71% drop on February 21, 2025. The technical indicators show:

• RSI (14) at 53.47 indicates neutral momentum
• Stock is trading above all major moving averages (SMA 5,10,20,60,200)
• Bollinger Band Position (BBP) at 0.55 suggests moderate upward momentum

Fundamental Drivers

According to analyst forecasts:

• Revenue expected to grow 23.86% to $5.83B in 2025
• EPS projected to increase 40.45% to $6.37 in 2025
• Forward P/E of 65.21 indicates high growth expectations

Price Target Analysis

Based on 19 Wall Street analysts:

• Average target: $398.05
• High target: $650
• Low target: $66
• Median target: $435

Specific Price Prediction

By end of 2025, APP stock is likely to reach $525-550 range, supported by:

1. Strong AI-driven growth as company's artificial intelligence products continue delivering excellent results

2. Recent analyst actions:

• Loop Capital raised PT to $650 (Feb 20)
• Citigroup raised PT to $600 (Feb 19)
• Oppenheimer raised PT to $560 (Feb 13)

3. Fibonacci levels indicate:

• Key resistance at $502.90
• Strong support at $382.04
• Pivot point at $442.47

The main reason for this target is the company's successful transition to AI-focused solutions and strong revenue growth projections. However, recent volatility and high valuation multiples suggest potential price swings.

The S1 support level for APP Stock is $382.95 ,The R1 resistant level for APP Stock is $503.81.

As of the end of day on 2025-02-26, the price of APP Stock was $319.

The target price for APP Stock according to analyst rating is 539.88, with the highest price target at 650.00 and the lowest at 370.00. Analysts have a Strong Buy rating on APP Stock overall.

The market cap of APP is $128.2B.

Based on the provided data and recent market activity, I'll analyze whether APP (AppLovin) is overvalued.

Valuation Analysis:

Current Market Position:

• Trading at $415.31, down 7.71% in the latest session
• Market cap of approximately $139.4B
• Current P/E ratio of 61.98x
• PEG ratio of 1.63, which is relatively reasonable compared to peers

Growth & Fundamentals:

• Expected revenue growth of 32.32% YoY
• Projected EPS of $1.28, showing 161.22% growth YoY
• Strong profit margins of around 30%
• Currently carries a Zacks Rank #2 (Buy)

Technical Analysis:

Comparative Valuation: The stock's PEG ratio of 1.63 compares favorably to competitors:

• Google: 0.78
• GM: 1.17
• Tesla: 1.63
• Toyota: 1.81
• Nvidia: 2.32
• Apple: 2.35
• Ferrari: 3.42
• Amazon: 3.78
• Volkswagen: 4.60

Conclusion: While APP's absolute P/E ratio appears high at first glance, the stock is not overvalued when considering its exceptional growth rates and strong profit margins. The PEG ratio of 1.63 suggests reasonable valuation relative to growth. However, recent price volatility and the 7.71% drop indicate some market uncertainty. The company's strong fundamentals and growth trajectory support the current valuation levels.

AppLovin Corporation provides application technology platform, AppLovin. The Company operates through two segments: Software Platform, and Apps. Its Software Platform is primarily made up of four key solutions, such as AppDiscovery, MAX, Adjust, and Wurl. AppDiscovery is powered by AXON, its AI-powered advertising engine, and matches advertiser demand with publisher supply through auctions at vast scale and at microsecond-level speeds. MAX is a monetization solution, utilizing an advanced in-app bidding technology that optimizes the value of a publishers advertising inventory by running a real-time competitive auction. Adjust is a measurement and analytics marketing platform which provides marketers with the visibility, insights, and data needed to scale their apps marketing results. Wurl is connected TV (CTV) platform that both distributes streaming video for content companies and provides advanced advertising and publishing solutions to attract viewers and maximize revenue.

Based on the available data and market analysis, here is the price prediction for AppLovin (APP) stock by 2030:

AppLovin stock is projected to reach $850-900 by 2030, driven by its continued dominance in mobile advertising technology and AI-powered solutions. The company's strong market position in mobile app monetization and its successful pivot to AI-enhanced advertising platforms support this growth trajectory. Recent hedge fund and mutual fund managers' shared confidence in APP as a "favorite stock" further validates its long-term potential.

The stock's current momentum, with a 7-fold increase over the past 12 months, combined with its expanding market share across the AdTech value chain, positions it well for sustained growth through 2030.

APP has a total of 1717 employees.