AppLovin mispriced opportunity or value trap?
AppLovin is growing 60% YoY and now trades at a more reasonable valuation after recent price declines that the market may have overreacted to. The author initiated a 5% portfolio position at $303, viewing the current price as attractive relative to growth prospects rather than a falling knife.
At post $319.05·Now $312.01-2.2% since postedas of Sep 8, 4:30 PM ET
1d-1.7%
3d+0.5%
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In my opinion APP is one of the best VALUES in the market now
APP trades with a margin of safety at 18x forward PE despite 50%+ revenue growth, 80%+ profit margins, and management guidance for 30%+ growth over two years. The company's new e-commerce ad business offers significant TAM expansion, and strong free cash flow generation combined with low debt and high cash support upside to $800-900 per share.
At post $311.98·Now $312.01+0.0% since postedas of Sep 8, 4:30 PM ET
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3d-1.5%
1w-2.0%
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$APPr/ValueInvestingStock Analysisbullish u/Yee4614 · 28d agono track record yet AppLovin - What am I missing
AppLovin appears significantly undervalued at 26x P/E and 0.59 PEG despite 60% QoQ revenue growth, 65% profit margins, and strong competitive positioning with 2-5x ROAS advantage in mobile gaming. The company's expansion into high-growth TAM segments (e-commerce and CTV) combined with solid Q2 results provides substantial upside potential.
At post $318.68·Now $312.01-2.1% since postedas of Sep 8, 4:30 PM ET
1d-4.7%
3d-1.0%
1w-3.6%
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Why is AppLovin Not Talked About More?
AppLovin is undervalued relative to its AI business quality and cash generation. The company grows revenue 50% YoY, reduces share count quarterly through $4B+ in buybacks, requires minimal CapEx, and generates strong cash flow when stripping out stock-based compensation—metrics that rival Mag7 companies but at a fraction of their valuation.
At post $485.89·Now $312.01-35.8% since postedas of Sep 8, 4:30 PM ET
1d-0.9%
3d-0.9%
1w+23.5%
1m-3.3%
3m-36.0%
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“Screenshot of position (details not fully legible in description)”
Grabbed some App-Lovin before earnings. Hope it prints in the morning
Author is bullish on AppLovin ahead of earnings, expecting a significant move higher. The position was established before earnings with anticipation of a positive print.
At post $468.83·Now $312.01-33.5% since postedas of Sep 8, 4:30 PM ET
1d+6.4%
3d-0.1%
1w-3.3%
1m+18.8%
3m-10.5%
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“22x 420/430 and 46x 490/500 06/18 spreads”
Ad revenue train next stop $APP
APP offers cleaner exposure to the performance ads and AI growth trend demonstrated by strong results from Meta, Reddit, and Zeta. The author holds multiple call spreads positioned for May earnings, expecting guidance to remain robust and ad spending momentum to continue.
At post $460.00·Now $312.01-32.2% since postedas of Sep 8, 4:30 PM ET
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3d+3.3%
1w+1.9%
1m+33.3%
3m-12.2%
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