The Motley Fool on $APP (Nov 5, 2026)
AppLovin's growth is excellent and its operating margin turns almost 80 cents of every revenue dollar into operating profit and cash, which is phenomenal. Though the stock has been under extreme pressure on Trade Desk-type fears and is very expensive on price to sales, as long as growth stays excellent investors have no reason to worry; the speaker concedes he does not follow the company closely.
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do you want to cover app? I don't know if you look at looked at Apploven yet. A little bit stocks up about 30% on the day. So, you want to have a little bit of good news. Apploven is providing that.
I can't get over this is just a terrible name for a company. Um so good good ticker. Uh terrible name for a company. But the the numbers keep you know like you talked about with Marcato Libre moving up and to the right.
Uh what I got here is their uh trailing 12-month revenue in blue. Orange is their operating profit and then purple the purple line is their operating profit margin. That operating profit margin is what is just so impressive to me.
They're turning like almost 80 cents in every dollar into an operating profit and ultimately cash, which is just phenomenal.
Yeah, I I mean I listened a little bit to the earnings score yesterday on on another stream, but I don't follow the company that closely. I know the stock has been under extreme pressure because people thought this was another uh the trade desk type of uh type of scenario.
As of right now, the growth is excellent. And so until that changes, I I don't see why uh investors should be worried. But I don't again I don't follow the company that closely.
It is a company worthund and maybe 1020 billion already today. So yeah, on a price to sales multiple, it's very expensive. But as we've seen, it's a very profitable business as well. So um so there's that.
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