Part 1: Deep dive on AppLovin (APP)
Paid subscribers to Jonah’s Growth Stock Deep Dives receive ~2 deep dives per month (8,000+ words), ~2 mini deep dives per month (2,000+ words) and quarterly earnings commentary (on most of my portfolio companies) plus access to my investment portfolio (up +104.1% YTD in 2024, up +134.7% in 2023 and up +2,090% since January 2020) with real-time daily activity, notes/commentary and charts throughout the day.
My investment strategy is pretty simple. I want to own 20-30 high-quality growth stocks with the best fundamentals at the most reasonable valuations — if the fundamentals begin to disappoint or the valuation no longer looks compelling I will trim or sell my position. I want to own stocks that have at least 50% upside within the next 1-2 years and at least 100% upside within the next 3-4 years. If I buy stocks that are too expensive, the fundamentals aren’t good enough or my investment thesis is flawed — then I’ll never hit my investment targets. My objective is to maximize performance in good markets and minimize losses in bad markets. I accomplish this by being very selective in what I own but also using technical analysis, stop losses and hedges to protect my portfolio in market downturns.
Company: AppLovin
Ticker: (APP)
Website: AppLovin.com
IPO date: April 15, 2021
IPO price: $80.00
Current stock price: $63.42
Outstanding shares: 342 million
52-week high: $63.49 on March 04, 2024
52-week low: $11.69 on March 13, 2023
ATH: $116.09 on November 11, 2021
Market cap: $21.7 billion
Net cash/debt: -$2.6 billion
Enterprise value: $24.3 billion
Headquarters: Palo Alto, California, United States
Number of employees: 1,745
Average price target from analysts: $64.66
Investor Relations: investors.applovin.com
Q4 2023 Earnings Report: https://s27.q4cdn.com/966411597/files/doc_financials/2023/q4/applovin-4q23-shareholder-letter.pdf
Outline
Introduction [part 1]
Company Background [part 1]
Opportunity [part 1]
Business Model [part 1]
Competitive Advantages [part 1]
Risks [part 1]
Valuation [part 2]
Investment Model [part 2]
Analysts [part 2]
Technicals [part 2]
Conclusion [part 2]