"While Nvidia ( NASDAQ:NVDA ) has delivered almost 1,200% over the past three years, and Palantir Technologies ( NASDAQ:PLTR ) has outperformed even that, with gains of 2,370%. Yet one stock has surpassed both of them - combined. AppLovin ( ) has posted a jaw-dropping 3,980% return over the same period, and there is no reason to believe it won't keep on growing going forward."
"What started as a mobile gaming company has evolved into an advertising tech leader, powered by its artificial intelligence (AI) engine Axon. The launch of Axon 2.0 in 2023 supercharged AppLovin's ad targeting, leading to 75% ad revenue growth last year and net income surging 343% to $1.58 billion. Its pivot to e-commerce has expanded its market tenfold, positioning it to challenge Alphabet ( NASDAQ:GOOG )( NASDAQ:GOOGL ), Meta Platforms ( NASDAQ:META ), and Amazon ( NASDAQ:AMZN )."
"AppLovin's transformation hinges on Axon, a machine learning system that optimizes ad placements by predicting user behavior. This has enabled precise matching of advertiser demand with publisher supply, boosting returns on ad spend. Management says the platform has been experiencing 50% week-over-week increases in total spending, and with the likely expansion of its self-service program next year, growth could accelerate."
AppLovin shifted from a mobile gaming company into an advertising technology leader built around the Axon AI engine. Axon 2.0, launched in 2023, improved ad targeting and drove 75% ad revenue growth while net income rose 343% to $1.58 billion. The platform optimizes ad placements by predicting user behavior, matching advertiser demand with publisher supply, and supports 1.6 billion daily active users to sustain premium ad rates despite privacy headwinds. Management reports 50% week-over-week increases in total spending and plans to expand a self-service program. Acquisitions like MoPub enhanced real-time bidding, and an e-commerce pivot expanded the addressable market.
Read at 24/7 Wall St.
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