When Is It Too Late to Buy AppLovin Stock?
As AppLovin's stock has skyrocketed in the last six months, investors have responded to the dramatic growth in its advertising business, which has outperformed Nvidia by a wide margin since the start of 2023. Historically, AppLovin was an owner and developer of mobile games, but it has shifted focus to AI-powered ad tech platform Axon, expanding into e-commerce and other businesses. Advertising revenue jumped 73% to $1 billion in the fourth quarter, continuing a trend from the rest of the year.
- Despite its promising growth prospects, AppLovin's valuation still seems reasonable for its growth, with a price-to-sales ratio of 38 and a highly profitable business.
- With 2025 shaping up to be a breakout year for the company, will investors be able to capitalize on this potential as they consider buying stock in AppLovin?