AppLovin (APP) has become one of the most talked-about tech stocks of 2024, with its shares surging by over 700% this year alone. The company, which offers a platform designed to help businesses monetize mobile games, has become a favorite among investors, who are betting on its strong growth potential. However, after such a massive price jump, many are asking whether AppLovin stock has already peaked or if there is more upside left for those looking to invest in the company today.
In this article, we’ll take a closer look at why AppLovin has been such a strong performer this year, evaluate whether its stock is too expensive at current prices, and discuss whether it remains a good investment for the future.
Why Has AppLovin Seen Explosive Growth This Year?
AppLovin’s stock price has skyrocketed in 2024, with shares up over 700%. This remarkable growth is largely driven by the company’s ability to capitalize on the booming mobile gaming industry. AppLovin’s platform is designed to help developers monetize their games while also providing tools for businesses to expand their audience and drive revenue growth.
For the third quarter of 2024, AppLovin posted $1.2 billion in revenue, a 39% year-over-year increase. What’s even more impressive is the company’s profitability, with earnings jumping from $108 million a year ago to $434 million this quarter. AppLovin’s net margin has also improved significantly, increasing from 13% to 36%, demonstrating its strong financial position and the effectiveness of its business model.