The Zacks Analyst Blog AppLovin, Alphabet and Meta

For Immediate ReleasesChicago, IL – December 13, 2024 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include including AppLovin Corp. APP, Alphabet Inc. GOOGL and Meta Platforms META.Here are highlights from Friday’s Analyst Blog:AppLovin Stock Skyrockets +748% This Year: Too Hot to Touch?AppLovin Corp.  has been one of the standout performers in 2024, with its stock price surging by a monstrous 748% year to date. This rise is significant compared to the 54% rally of the industry.APP's performance is notably stronger than those of its competitors in the in-game mobile advertising space. Alphabet Inc. has surged 40% and Meta Platforms has gained 79% over the same period.Now, the key question for investors is whether the stock’s growth trajectory justifies a “buy” at its current level or if waiting for a pullback might offer a better entry point.APP Shines with Strong Financial PerformanceAppLovin’s recent financial results demonstrate the company’s strong fundamentals and growth potential. AXON 2.0 technology and strategic expansion in gaming studios have significantly boosted revenue growth.The top line rose 39% year over year and 11% sequentially in the third quarter of 2024. Adjusted EBITDA witnessed a 72% year-over-year surge and a 20% sequential increase in the quarter. The net income increased 300% from the year-ago quarter and 40% sequentially. The company reported a 76% year-over-year revenue increase in 2023 and a 41% rise in adjusted EBITDA.Although there are potential risks, such as the possibility of slowed growth in the in-game advertising segment and the uncertain impact of non-gaming ventures, AppLovin appears well-positioned for continued growth thanks to its technological advancements and strategic expansion efforts.APP’s Strong Liquidity Ensuring Obligations Are MetAPP’s liquidity position is robust, with a current ratio of 2.41 at the end of the third quarter of 2024 compared to the industry’s 2.16. A current ratio above 1 indicates that the company can comfortably meet its short-term obligations.APP’s Promising Top and Bottom-Line ProspectsThe Zacks Consensus Estimate for APP’s 2024 earnings is pegged at $4.06, indicating 314.3% growth from the year-ago level. Earnings in 2025 are expected to increase by 45.3% from the prior-year actuals. The company’s sales are expected to grow 40% and 21.8% year over year, respectively, in fiscal 2024 and 2025. We anticipate that the enhanced capabilities of AXON 2.0, along with synergies from the software platform and in-app features — such as cross-network advertising, cross-promotion, and the platform’s utilization of in-app user data — will drive revenue growth in the future.Analysts' Confidence Reflected in Rising EstimatesIn the past 60 days, seven estimates for 2024 earnings have been revised upward, with no downward revisions. For 2025, seven estimates moved north over the past 60 days versus no southward revisions. This indicates strong confidence among analysts in the company's ability to improve its financial performance soon.APP’s “Must Buy” RecommendationAPP presents a compelling investment opportunity due to its impressive financial performance, strong liquidity and robust growth prospects. The company's recent results and strategic initiatives underscore its potential for continued success in the gaming and software sectors. AppLovin’s strong fundamentals, innovative technology, and strategic growth initiatives position it as a leader in its industry. With a solid financial outlook and increasing analyst confidence, we recommend a "Buy" rating for APP stock to capitalize on its promising growth trajectory.APP currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.Why Haven't You Looked at Zacks' Top Stocks?Since 2000, our top stock-picking strategies have blown away the S&P's +7.0 average gain per year. Amazingly, they soared with average gains of +44.9%, +48.4% and +55.2% per year.Today you can access their live picks without cost or obligation.See Stocks Free >>Media ContactZacks Investment Research800-767-3771 ext. 9339support@zacks.com                                     https://www.zacks.com                                                Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance  for information about the performance numbers displayed in this press release.Free Report: 5 Clean Energy Stocks with Massive UpsideEnergy is the backbone of our economy. It’s a multi-trillion dollar industry that has created some of the world’s largest and most profitable companies.Now state-of-the-art technology is paving the way for clean energy sources to overtake “old-fashioned” fossil fuels. Trillions of dollars are already pouring into clean energy initiatives, from solar power to hydrogen fuel cells.Emerging leaders from this space could be some of the most exciting stocks in your portfolio.Download Nuclear to Solar: 5 Stocks Powering the Future to see Zacks’ top picks free today.Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report AppLovin Corporation (APP): Free Stock Analysis Report Alphabet Inc. (GOOGL): Free Stock Analysis Report Meta Platforms, Inc. (META): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks