In my opinion APP is one of the best VALUES in the market now

AI Summary

Summary

The author argues AppLovin (APP) is one of the best value stocks today, citing >80% profit margins, forward P/E of 18, revenue growth still above 50%, and management guidance for >30% growth over the next two years.
The thesis includes a new e-commerce ads catalyst: capturing just 5% of the TAM could imply an $800-$900 stock price, while even without this segment APP is seen as slightly undervalued.
The post acknowledges key risks: reliance on Alphabet and Apple ecosystems, especially since APP does not own the platforms it operates on.
Quality assessment: This is a semi-informed, fundamentally based bull case, but it leans speculative due to vague TAM math, reliance on management forecasts, and limited discussion of competitive or platform risk. Not deep institutional-grade DD, but not pure noise.

Score 16

Comments 38

Upvote % 72%

▶ Full Post Text

Ideas

u/Tallwhitedude123 Reddit r/ValueInvesting

Strong fundamentals cited: >80% margins, ~24x PE, ~18x forward PE, >50% revenue growth, large buybacks, low debt, SEC investigation dropped. If growth is merely 30%+ per management guidance and e-commerce ads gain any traction, current valuation offers a favorable risk/reward with margin of safety. Long APP as a quality growth compounder trading at a reasonable valuation, with optional upside from e-commerce advertising TAM. Heavy dependence on Alphabet/Apple ecosystems; deceleration in revenue growth; e-commerce ads could fail to gain meaningful traction; multiple compression if high growth slows faster than expected.

Summary

▶ Full Post Text

Ideas

More from Reddit — r/ValueInvesting