"The earlier launch of its artificial intelligence (AI)-based ad platform, Axon, transformed the company from a mobile game developer to one that facilitates and manages ads on mobile games, and increasingly, other categories like e-commerce. The growth of the ad business was so strong that earlier this year, the company sold its mobile app business, becoming a pure-play adtech company."
"The company hasn't reported earnings or announced an acquisition. In fact, the only concrete news item driving the stock higher was its admission into the S&P 500. The stock jumped 11% on Sept. 8 after the news came out that it would be joining the benchmark index, and then another 5% on Sept. 19 as it prepared to be added the following Monday."
"1. Its ad product is gaining market share AppLovin's gains come while another adtech stock is notably struggling. Shares of The Trade Desk have tumbled this year as the company's growth has slowed and it's faced rising competition from Amazon and other "walled gardens." AppLovin, on the other hand, doesn't compete directly with The Trade Desk and continues to see clear skies ahead."
AppLovin transformed from a mobile game developer into a pure-play adtech company after launching Axon, an AI-based ad platform that manages ads across mobile games and other categories like e-commerce. Exceptional ad-business growth prompted the sale of its mobile app business and drove substantial profit margins and share gains. The stock has risen over 3,000% in three years and climbed more than 50% since Aug. 20 despite no recent earnings report or acquisitions. Admission into the S&P 500 triggered index-driven ETF purchases and accounted for part of the move, while market-share gains and favorable positioning versus competitors supported further upside.
Read at The Motley Fool
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