AppLovin: Some KPIs Could Be Better, But A Low Valuation Makes It A Buy (Archive)
Undervalued AppLovin with improving ad KPIs and supportive technicals offers asymmetric upside.
This 5-Minute Pitch was originally published on Seeking Alpha. It is shared here to showcase my work and track record. 5-Minute Pitches published only this site will not be disseminated anywhere else and will remain behind a paywall, accessible only to Hunter Tier members.
Elevator Pitch
- Channel checks suggest AppLovin may gain 3 to 5 points of ad budget share over the next 6 to 12 months if planned reallocations materialize.
- APP’s current 1.3 percent ad conversion rate is low versus management’s blended 5 percent target, so revenue acceleration depends on clear improvement in ad performance metrics.
- APP’s ad conversion rate is trending better versus peers, but return on ad spend still lags other ad platforms.
- Technicals indicate APP is holding a major former resistance that has flipped into support on the monthly chart, with weakening downside momentum and scope for an upward move.
Read the full article here.
