Why AppLovin Could Skyrocket Before August 6 – Don’t Miss This Catalyst
AppLovin’s stock is flashing a rare buy signal—and the clock is ticking.
The mobile tech giant’s August 6 catalyst could send shares into overdrive. Here’s what Wall Street isn’t screaming about yet (but should be).
The Hidden Engine Driving AppLovin’s Surge
Forget sleepy ad-tech players—this company’s AI pivot is printing cash while rivals scramble. Their secret sauce? Machine learning that actually works (a miracle in this space).
Why August 6 Changes Everything
Mark your calendar for what could be the company’s breakout moment. Hint: It involves locked-up shares and a supply shock that’ll make crypto token unlocks look tame.
One cynical truth? The same analysts downgrading this now will be chasing it at double the price next quarter. Classic Wall Street.
Image source: Getty Images.
How the Tripledot deal could unlock value for AppLovin
First, the deal will allow AppLovin and its investors to focus on just AppLovin's strongest business, adtech, which helps advertisers optimize ad placements, primarily on mobile apps, through its Axon AI technology.
Second, AppLovin will receive $400 million in cash from the sale, as well as a 20% stake in Tripledot, giving it upside potential if Tripledot increases in value, which is currently at $2 billion, making the equity stake worth $400 million. It's unclear how AppLovin plans to use that cash, but it will help strengthen its balance sheet and could help it refinance its debt at a lower interest rate.
Finally, the stock has a lot of upside potential in its second-quarter report if it can top its guidance. AppLovin's ad business is growing rapidly, as advertising revenue ROSE 71% to $1.16 billion in Q1, while revenue from its apps business declined.
Its second-quarter guidance is calling for just modest sequential growth in ad revenue to $1.195 billion-$1.215 billion. If it can top that number, the stock could soar, as it's down more than a third from its peak earlier this year.
