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# Axon Ad Engine Roars And Short Seller Noise Fades But I'm Still Not Buying AppLovin Yet (Archive)
- URL: https://www.huntingalphas.com/axon-ad-engine-roars-and-short-seller-noise-fades-but-im-still-not-buying-applovin-yet-archive-copy/
- Published: 2025-06-30T20:17:00.000Z
- Updated: 2026-02-28T18:02:15.000Z
- Description: Axon-powered ad engine drives strong profitable growth, but valuation and governance caution me.
- Author: Vish (Hunting Alphas)
- Tags: 5-Minute Pitches, #noindex, Archive, #sa-origin, APP, Tech

*This 5-Minute Pitch was originally published on Seeking Alpha before the launch of the Hunting Alphas website. It is shared here to showcase my previous work and track record. New 5-Minute Pitches published on this site will not be disseminated anywhere else.*

## Elevator Pitch

- AppLovin's AI-driven ad platform has strong long-term growth drivers, with management guiding for a minimum of high-teens annual revenue growth.
- An outcome-focused revenue model positions APP well to consistently keep increasing gross margins. And there are powerful operating leverage benefits to drive EBIT margin expansion to 70% in 3 years.
- I really don't like how management is divesting their apps/gaming business at throwaway valuations. This decision seems hurried, which could signal risk of poor moves in future M&As.
- The market is calling bluff on the short seller attacks as management has dismissed the shorts' allegations and hired a top lawyer to defend the firm.
- APP is trading at a lower than usual premium vs its competition, which I think suggests undervaluation especially given its superior growth rate in revenues and earnings. But the relative technicals vs SPX500 suggest no sustained upside breakout just yet.

Read the full article [here](https://seekingalpha.com/article/4798421-axon-ad-engine-roars-and-short-seller-noise-fades-but-im-still-not-buying-applovin-yet?ref=huntingalphas.com).

#### Disclosures and Disclaimers

**Past performance ≠ future results. Not investment advice. See* [**full Disclaimer*](https://www.huntingalphas.com/disclaimer/)**.*