AppLovin is the IBD Stock Of The Day as the mobile app marketing platform approaches a buy point ahead of its fourth-quarter earnings report.
The Palo Alto, Calif.-based company plans to deliver its fourth-quarter earnings results and outlook late on Feb. 12.
Analysts polled by FactSet expect the firm to earn $1.25 a share on sales of $1.26 billion in the December quarter. That would translate to year-over-year growth of 155% in earnings and 32% in revenue.
For the March quarter, Wall Street forecasts AppLovin earnings of $1.30 a share, up 94%, on sales of $1.32 billion, up 24%.
AppLovin's software platform enables app developers to market, monetize and analyze their apps. The company also makes mobile games such as "Wordscapes," "Matchington Mansion" and "Game of War." Plus, the company has expanded into advertising-based e-commerce and streaming television services.
AppLovin's products include AppDiscovery, Max, SparkLabs, ALX, Array, Adjust and Wurl.
On Jan. 25, Jefferies analyst James Heaney reiterated his buy rating on AppLovin stock with a price target of 425.
In a note to clients, Heaney said AppLovin "remains the No. 1 return on ad spend (ROAS) network for the largest spenders." He said AppLovin should benefit from a forecast acceleration of mobile game ad spending growth in 2025.
AppLovin Stock Is Consolidating
AppLovin stock is in an eight-week consolidation pattern with a buy point of 417.63, according to IBD MarketSurge charts. That buy point is also its all-time high, reached on Dec. 6.
AppLovin stock flirted with an early entry on Thursday as it broke a downtrend line and surpassed its Jan. 22 high of 371.77, according to IBD stock analysis. It was up as much as 5.3% to 385.66 early in the session, but those gains erased. On the stock market today, the stock dipped a fraction to close at 365.51.
Earlier this month, AppLovin stock received a bunch of price-target hikes from Wall Street analysts as it rebounded off its 50-day moving average line, a key support level.
AppLovin stock is on two IBD lists: Leaderboard and Tech Leaders.
Follow Patrick Seitz on X, formerly Twitter, at @IBD_PSeitz for more stories on consumer technology, software and semiconductor stocks.
