Our Stock of the Week is Applovin Corp (APP). APP builds software-based platforms for mobile app developers to enhance the marketing and monetization of their apps in the United States and internationally. The company’s software solutions, including AppDiscovery, matches advertiser demand with publisher supply through auctions.

The company states, “Since our founding in 2011, we have been focused on building a software-based platform for mobile app developers to improve the marketing and monetization of their apps. Our founders, who are mobile app developers themselves, quickly realized the real impediment to success and growth in the mobile app ecosystem was a discovery and monetization problem—breaking through the congested app stores to efficiently find users and successfully grow their business.”

APP went from an EPS loss of $0.52 in 2022 to an estimated EPS profit of $3.17 in 2023. In its most recent quarter, it grew revenues by 21%.

The company is using AI to enhance its business, and it will likely receive a boost this week if there are favorable comments from Google and Microsoft about AI.

The company reports its earnings on Feb 6 before the open, and current estimates are for earnings of $0.74.

There are 14 analysts that follow the stock with an average target price of $54.77, which is upside potential of around 17% from the current price.

Technically, the stock has a very interesting chart with a long trading range and several attempts to break to a new closing high of over $45. Volume has been improved lately, and we are looking for positive anticipating about earnings and guidance to help push the stock to a new closing high.

As always, we will not chase the stock on Monday morning but will look to aggressively trade it as it develops.

This post is for educational purposes only! This is not advice or a recommendation. We do not give investment advice. Do not act on this post. Do not buy, sell, or trade the stocks mentioned herein. We WILL actively trade this stock differently than discussed herein. We will sell into strength and buy or sell anytime for any reason. We will actively trade into any unusual activity. At the time of this post, principals, employees, and affiliates of Shark Investing, Inc. and/or principals, clients, employees, and affiliates of Hammerhead Financial Strategies, LLC, directly or indirectly, controlled investment and/or trading accounts containing positions in APP. To accommodate the objectives of these investing and/or trading accounts, the trading in these shares will be contrary to and/or inconsistent with the information contained in this posting.