APP - Applovin Corporation

Host says he used to be really interested in AppLovin but has since refined his strategy to focus on companies that own the end user. No longer a focus.

AppLovin generated 53% revenue growth and huge free cash flow, and the host calls the business 'absolutely on fire.' The valuation screen shows a mid-case value above the current price, but he cautions that the company is young, depends heavily on one advertising algorithm, and future assumptions may be aggressive.

AppLovin fell roughly 50% despite revenue growing 53% and generating strong free cash flow. The host's 10-year valuation shows a 22% expected return on middle assumptions, with a middle target price of $890 versus the current $310, making it one of the most attractive setups in the video.

AppLovin is a coin-flip: Q3 is crucial. If it gives another excuse for soft growth, 'Trade Desk 2.0' comparisons will follow; Brad is not buying.

Host is not focused on advertising names like AppLovin, Zeta, or TTD; might be interested next quarter if growth re-accelerates.

Too stupid to understand despite strong growth/moat; out but monitors.

AppLovin has ~90% gross margins, strong cash flow, and a PE of 27, making it reasonably priced.

Morgan Stanley maintained $720 base case and $1,100 bull case. Applovin is sustaining above-market growth by expanding conversion rates, with 10x conversion rate gap vs market leaders implying significant headroom. Host expects stock to 'tear' when floodgates open in June.

Dorsey made it a core position. Growing 40-50% per year with beautiful margins, but track record is only two years. Accused by a short seller of fraud and tricky accounting. Host is not comfortable — too short a track record and doesn't like the accounting.

Strong earnings with 60% year-over-year revenue growth and 113% EPS growth. Axon product still in beta with public release in June. Using generative models for personalized advertising.