Hello everyone! Today i want to share some trading ideas with you!
1. AppLovin just printed $1.7B of revenue (+66% YoY), $1.4B of EBITDA (+82% YoY) and an 84% EBITDA margin and guided to sequential growth into a seasonally weaker quarter. The stock is clearly disconnected from the underlying business performance.
2. The business is evolving from a “gaming monetization engine” into discovery infrastructure for commerce and the broader web. That’s a much bigger long-term story, but narrative transitions create short-term multiple air pockets in a market that hates uncertainty. Just look at how the market is treating $Meta Platforms, Inc.(META)$ , $Alphabet(GOOGL)$ , $Microsoft(MSFT)$ & $Amazon.com(AMZN)$ over CapEx.
3. MAX is becoming infrastructure that sits between users and outcomes across gaming, e-commerce & eventually web advertising. In that model, competition doesn’t just steal share but actually expands the pie because AppLovin still monetizes the marketplace even when another bidder wins.
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