Shares of AppLovin rose 4.8% after the company announced an upgrade to its share buyback program, increasing the repurchase capacity to $1.77 billion. In the past, AppLovin could repurchase only what it generated as free cash flow. The new program allows an immediate $500 million buyback, plus future repurchases based on cash flow performance. While the price-to-sales ratio remains high at 24, recent advertising revenue growth of 73% indicates potential for further stock appreciation, especially as industry recognition rises through endorsements from analysts like Mike Hickey.
AppLovin increased its share buyback program to $1.77 billion, signaling management's belief that its stock is undervalued despite recent financial volatility.
Analyst Mike Hickey rated AppLovin a buy, setting a price target of $525, bolstered by a new buyback program and strong e-commerce revenue growth.
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