AppLovin is benefitting from this part of the new normal. The pandemic spurred more digital migration. Post-pandemic will continue to push that trend as businesses rebound on the reopenings. The Company has over 200 mobile app games in its portfolio. The Company homepage keeps a running meter of over 7.6 billion downloads and growing. Shares originally tanked off it’s $80 IPO but has since rallied as investors become more aware of this potential powerhouse. Investors seeking to capitalize on the group of mobile apps can consider following AppLovin stock for opportunistic pullback levels to gain exposure.
On May 12, 2021, AppLovin reported its fiscal Q1 2021 results for the quarter ending April 2021. The Company reported an earnings-per-share (EPS) loss of (-$0.05) versus a profit of $0.01 in same period year ago. Revenues grew 132% year-over-year (YoY) to $603.9 million. Organic revenues rose 89% YoY.
Adjusted EBITDA rose 110% to $131 million. AppLovin CEO Adam Foroughi stated:
AppLovin raised its total revenues for fiscal 2021 to range between $2.65 billion to $2.70 billion indicating 83% YoY growth. Total adjusted EBITDA is expected between $680 million to $700 million, indicating 100% YoY growth.
CEO Foroughi set the tone:
He elaborated on the 90% YoY growth in Business Software segment. The pandemic had a “negligible” impact on its business as their audience primarily play casual games on the go. Growth in previous two quarter was driven by improvements to their machine learning engine and AXON, launched in late 2020. These two alone significantly grew its customer base and average revenue per customer. He noted the closing of the Adjust acquisition in April providing access to over 2,000 potential clients, attribution analytics products and a sales force. The Company seeks to expand its app portfolio which include over 200 games and 40 million daily active users (DAUs) utilizing 15 studios. He noted:
Using the rifle charts on the weekly and daily time frames provides a precision view of the landscape for APP stock. The weekly rifle chart is still materializing but the rising 5-period moving average (MA) sits at the $80.92 Fibonacci (fib) level. The weekly triggered the market structure low (MSL) on the breakout out above $70.17. The market structure high (MSH) sell triggers on a breakdown under $77.59. The daily rifle chart has a make or break with the 5-period MA sloping down to $83.01 as it nears a crossover down through the 15-period MA at $82.81. The daily stochastic has formed a mini inverse pup oscillation down through the 70-band. Prudent investors can monitor for opportunistic pullback levels at the $80.92 fib, $78.72 fib, $76.24 fib, $72.60 fib, $70.33 fib, and the $65.88 fib. Upside trajectories range from the $92.53 fib up to the $112.55 level.