AppLovin Stock: Wall Street’s Most Misunderstood AI Winner? (NASDAQ:APP)

Summary

• AppLovin is a standout AI-powered adtech platform, delivering robust cash flow and outpacing industry growth with expanding margins and a capital-light model.
• Despite a volatile stock ride, AppLovin remains undervalued, given its rapid earnings expansion, strong financials, and massive growth runway in web and TV ads.
• The company’s relentless automation, high-margin ad business, and recent divestiture of its gaming segment fuel exceptional profitability and free cash flow.
• Risks include cyclical ad spending, tough competition, and regulatory changes, but AppLovin’s innovation and execution make it a high-conviction buy for a major upside.

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