Added to YB: 2025-02-12
Pitch date: 2025-02-10
APP [bearish]
AppLovin Corporation
-77.49%
current return
Author Info
The Captain's Log is run by Lauren Balik and shares independent investment research (mostly shorts). Sign up for the newsletter.
Company Info
AppLovin Corporation engages in building a software-based platform for advertisers to enhance the marketing and monetization of their content in the United States and internationally.
Market Cap
$220.7B
Pitch Price
$381.60
Price Target
N/A
Dividend
N/A
EV/EBITDA
56.55
P/E
79.29
EV/Sales
35.28
Sector
Software
Category
N/A
AppLovin (APP) Has a ‘SuperBad’ Third-Party Gift Card Scheme Fueling Growth
APP short: Cash cow games (13% rev) use 'Get-Paid-To' schemes, subsidizing IAPs 1:1 with gift cards. E-commerce narrative unsustainable as users play to earn, not spend. Competing with Meta/Google/TikTok risks acquisition channel loss. Revenue growth inflated by gift card giveaways. Major shareholder selling. Strong sell.
Read full article (10 min)