Long Position on APP @ $41.00 on 1/18/2024 (Fundamentals)

AppLovin Corporation (APP) engages in building a software-based platform for mobile app developers to enhance the marketing and monetization of their apps in the United States and internationally.

The company's software solutions include AppDiscovery, a marketing software solution, which matches advertiser demand with publisher supply through auctions; Adjust, an analytics platform that helps marketers grow their mobile apps with solutions for measuring, optimizing campaigns, and protecting user data; MAX, an in-app bidding software that optimizes the value of an app's advertising inventory by running a real-time competitive auction; and Wurl, a connected TV platform, which primarily distributes streaming video for content companies.

Its business clients include various advertisers, internet platforms, and others. The company was incorporated in 2011 and is headquartered in Palo Alto, California.

AppLovin Corporation reported earnings of $0.30 per share on revenue of $864.26 million for the third quarter ended September 2023. The consensus earnings estimate was $0.27 per share on revenue of $797.95 million. The company beat expectations by 7.14% while revenue grew 21.20% on a year-over-year basis.

The company said in its shareholders letter it expects fourth quarter revenue of $910.0 million to $930.0 million. The current consensus revenue estimate is $837.82 million for the quarter ending December 31, 2023.

With strong projections from its CEO for this upcoming Q4 on February 14th for the mobile game studio and provider of marketing and monetizing advertising, and with share prices up 12.5% higher.

Entry Point: $41.00

Trading Range: $10.09 - $45.10

Stop Loss: $39.00

Target Price: $45.00

Position closed on 1/24/2024 at price of $45.00 with a 9.76% gain in 6 days.

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