APP

Applovin Corp - Ordinary Shares - Class A

TMT


Presented:08/25/2021
Price:$76.60
Cap:$28.52B
Current Price:$143.81
Cap:$48.07B

Presented

Date08/25/2021
Price$76.60
Market Cap$28.52B
Ent Value$28.63B
P/E RatioN/A
Book Value$5.37
Div Yield0%
Shares O/S372.35M
Ave Daily Vol906,914
Short Int5.45%

Current

Price$143.81
Market Cap$48.07B
AppLovin Corp. engages in the development and operation of a mobile marketing platform. It offers AppDiscovery, MAX, and SparkLabs. Its software-based platform caters to mobile application developers to improve the marketing and monetization of their applications. The company was founded by Andrew Karam, John Krystynak, and Adam Foroughi on July 18, 2011 and is headquartered in Palo Alto, CA.

Publicly traded companies mentioned herein: Apple Inc (AAPL), AppLovin Corp (APP), ironSource Ltd (IS), Playtika Holding Corp (PLTK), Sciplay Corp (SCPL), Skillz Inc (SKLZ), Stillfront Group AB (SF SS), Zynga Inc (ZNGA)

Highlights

The presenter is short shares of AppLovin Corp (APP), which he views as primarily a mobile game publishing business in addition to a mobile advertising network despite its reputation as the latter. APP has experienced exceptionally strong revenue growth in recent quarters and trades at 23x consensus 2023 EBITDA, a much richer valuation than other game publishers like ZNGA (12x), PLTK (10.5x), SCPL (12x), and SF SS (8x). Overall, this valuation is potentially unwarranted since the current growth is being inflated by recent games contributing 80% – 90% of organic growth, and since APP does not have any long-term differentiation. Valuing APP in line with comps leads to ~50% downside from the current $75 share price.

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Idea Discussion

Commentor 1 - 2 weeks ago

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