An investor who purchased 2,002 call options for Applovin (APP, Financial) at an offering price of $18.92 secured impressive profits. The transaction occurred yesterday at 10:04 ET when the stock was valued at $362.02. By the close of the trading day, APP shares had risen to $370.10, and the corresponding call options increased to $22.40.
This price rise delivered a mark-to-market profit of 18%, equating to $698,000, based on an initial investment of $3,787,000. The strategic move highlights the potential for significant returns when market movements align with investment forecasts.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 22 analysts, the average target price for AppLovin Corp (APP, Financial) is $477.13 with a high estimate of $650.00 and a low estimate of $200.00. The average target implies an upside of 28.92% from the current price of $370.10. More detailed estimate data can be found on the AppLovin Corp (APP) Forecast page.
Based on the consensus recommendation from 27 brokerage firms, AppLovin Corp's (APP, Financial) average brokerage recommendation is currently 1.9, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for AppLovin Corp (APP, Financial) in one year is $94.18, suggesting a downside of 74.55% from the current price of $370.1. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the AppLovin Corp (APP) Summary page.
APP Key Business Developments
Release Date: May 07, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- AppLovin Corp (APP, Financial) reported a 40% increase in total revenue year-over-year, reaching $1.5 billion, showcasing strong business growth.
- The company achieved an impressive 83% increase in adjusted EBITA, reaching $1 billion, with a 68% adjusted EBITA margin.
- AppLovin Corp (APP) generated $826 million in free cash flow, marking a 113% increase year-over-year.
- The company announced a strategic move to sell its games business, allowing it to sharpen its focus on advertising.
- AppLovin Corp (APP) is advancing its e-commerce and web advertising solutions, with plans to launch a self-service dashboard, which is expected to unlock significant growth opportunities.
Negative Points
- The company faces scrutiny from short sellers, which could impact investor confidence.
- AppLovin Corp (APP) is still in the early stages of its web advertising model, which may take time to fully develop and optimize.
- There is a potential impact from tariffs on web-based advertising, although the company believes it is well-positioned to manage these changes.
- The company is resource-limited in onboarding new web advertisers, which has slowed down the pace of new customer additions.
- AppLovin Corp (APP) acknowledges that its current web advertising model does not work perfectly for all customers, indicating room for improvement.
