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2021-04-15

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AppLovin IPO: 5 things to know about the software company seeking a $30 billion valuation

2021-04-15

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AppLovin: Capitalizing On The Surging Growth Of Mobile Game Apps

2021-03-09

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2021-03-09

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11:01","market":"us","language":"en","title":"AppLovin IPO: 5 things to know about the software company seeking a $30 billion valuation","url":"https://stock-news.laohu8.com/highlight/detail?id=1176099988","media":"MarketWatch","summary":"Software company that helps videogame and other developers monetize and manage their apps also owns ","content":"<p>Software company that helps videogame and other developers monetize and manage their apps also owns its own portfolio of mobile games</p>\n<p><img src=\"https://static.tigerbbs.com/a6543158d4079a56022522c1b36c5e81\" tg-width=\"620\" tg-height=\"418\" referrerpolicy=\"no-referrer\"></p>\n<p>AppLovin Inc. is shooting for a valuation of more than $30 billion as the app-software company set terms for its initial public offering in its bid to catch a sizable piece of a $200 billion mobile app market.</p>\n<p>On last&nbsp;Wednesday, AppLovin&nbsp;named a price range for its shares of&nbsp;$75 to $85 apiece, a price that could value the company at more than $30 billion. The company plans to sell at least 25 million shares and have about 360 million shares outstanding, which would trade on the Nasdaq under the ticker “APP.”</p>\n<p>The Palo Alto, Calif., company, which will be a decade old in July, makes marketing, monetization and analytics software that helps app developers grow their businesses. It also owns a portfolio of more than 200 free-to-play mobile games with in-app purchases. The expected valuation of AppLovin dwarfs that of a recent comparable IPO, Unity Software Inc.,which was valued at&nbsp;nearly $14 billion&nbsp;at the time of its IPO in September.</p>\n<p>In its Securities and Exchange Commission filing, AppLovin said it sees a total market opportunity of about $189 billion, with $101 billion of that in in-app advertising revenue and about $88 billion in worldwide direct-game spending, citing IDC 2020 figures. AppLovin expects that market opportunity to grow to $283 billion by 2024.</p>\n<p>Here are five things to know about AppLovin.</p>\n<p><b>The cost of business more than doubled, and Apple and Google are a reason</b></p>\n<p>AppLovin said it took in $1.45 billion in revenue in 2020, resulting in a loss of $125.9 million, versus 2019 revenue of $994.1 million and net income of $119 million. In 2018, the company booked revenue of $483.4 million for a loss of $260 million.</p>\n<p>The big cost hike in 2020 versus 2019 was a 130% jump in cost-of-business expenses to $555.6 million, with $112 million of it due to payment-processing fees. Those payment-processing fees are the same kind that&nbsp;Epic Games balked about&nbsp;paying to Apple Inc.’s&nbsp;App Store and Alphabet Inc.’s&nbsp;Google Play store, that ran as high as 30% of purchases.</p>\n<p>“The mobile-app ecosystem depends in part on a relatively small number of third-party distribution platforms, such as the Apple App Store, the Google Play store, and Facebook, some of which are direct competitors,” AppLovin said in its S-1. “We derive significant revenue from the distribution of our apps through these third-party platforms and almost all of our [in-app purchases] are made through the payment processing systems of these third-party platforms.”</p>\n<p><b>Nearly a quarter of proceeds will go to pay down debt</b></p>\n<p>AppLovin estimates it stands to bring in net proceeds of about $1.74 billion if it prices at the mid-point of its range.</p>\n<p>Of that, the company said it plans to use about $400 million to pay off debt under its revolving credit facility. Currently, AppLovin lists $1.6 billion in debt.</p>\n<p>“Additionally, we expect to use a portion of the net proceeds to enter into strategic acquisitions and partnerships,” AppLovin said. “However, other than our pending acquisition of Adjust, we do not have definitive agreements or commitments for any material acquisitions or partnerships at this time.”</p>\n<p><b>Acquisitions are part of its growth strategy</b></p>\n<p>Most recently, AppLovin announced plans to acquire Germany-based mobile-app measurement and marketing company Adjust. While AppLovin did not disclose terms of the deal, Crunchbase estimated the price at $1 billion.</p>\n<p>The company did state in its S-1 that it has “invested over $1&nbsp;billion across 15 strategic acquisitions and partnerships” since the beginning of 2018.</p>\n<p>AppLovin acquired mobile-game developer Machine Zone Inc. last May for an undisclosed amount, although Crunchbase estimated the deal at $500 million.</p>\n<p>That follows acquisitions of software development kit-management platform&nbsp;SafeDK in 2019, in-app header bidding company Max Inc. in 2018, and Germany-based mobile-ad network&nbsp;Moqoqo in 2014.</p>\n<p>“We will continue to explore and evaluate additional acquisitions, some of which may be the same size or even larger in scale and investment than the Machine Zone acquisition and our pending acquisition of Adjust,” the company said.</p>\n<p><b>KKR has the lion’s share of voting control</b></p>\n<p>The company plans to offer Class A shares in the IPO, which carry one vote, while early investors’ Class B shares will carry 20 votes. AppLovin has raised $1.4 billion in funding from investors, according to Crunchbase.</p>\n<p>Holding the reins will be KKR Denali Holdings, which will hold 72.4% of Class B shares after the offering, for 67.4% of the voting power. Other Class B shareholders include Applovin Chief Executive and co-founder Adam Foroughi, who will own 19.4% of the Class B shares with 18.1% voting rights, and Chief Financial Officer Herald Chen, with 3.2% of the Class B shares and 3% of voting rights.</p>\n<p>The company will also establish a nonvoting class of shares, though those shares do not yet exist.</p>\n<p><b>Attempt to sell to Chinese firm failed, and KKR stepped in</b></p>\n<p>If it wasn’t for U.S. concerns about investments in strategic assets from China, KKR may have never got involved and AppLovin would not have gone public.</p>\n<p>In September 2016, AppLovin agreed to be acquired outright by Chinese private-equity firm Orient Hontai Capital for&nbsp;$1.4 billion. A little over a year later, that deal was scrapped — reportedly after the Committee on Foreign Investment in the United States pushed back on the deal over customer data concerns — and&nbsp;AppLovin agreed to take an $841 million debt investment&nbsp;from Orient Hontai. Prior to that deal, Orient Hontai had invested $140 million in the company; currently, Orient Hontai owns 26.2 million Class A shares.</p>\n<p>In July 2018, KKR &amp; Co. invested $400 million for a minority stake in AppLovin of roughly 110 million shares. At the suggested IPO price, that $400 million investment would be worth more than $8 billion.</p>","source":"lsy1603348471595","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>AppLovin IPO: 5 things to know about the software company seeking a $30 billion valuation</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nAppLovin IPO: 5 things to know about the software company seeking a $30 billion valuation\n</h2>\n\n<h4 class=\"meta\">\n\n\n2021-04-12 11:01 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://www.marketwatch.com/story/applovin-ipo-5-things-to-know-about-the-software-company-seeking-a-30-billion-valuation-11617836424><strong>MarketWatch</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Software company that helps videogame and other developers monetize and manage their apps also owns its own portfolio of mobile games\n\nAppLovin Inc. is shooting for a valuation of more than $30 ...</p>\n\n<a href=\"https://www.marketwatch.com/story/applovin-ipo-5-things-to-know-about-the-software-company-seeking-a-30-billion-valuation-11617836424\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"APP":"AppLovin Corporation"},"source_url":"https://www.marketwatch.com/story/applovin-ipo-5-things-to-know-about-the-software-company-seeking-a-30-billion-valuation-11617836424","is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"1176099988","content_text":"Software company that helps videogame and other developers monetize and manage their apps also owns its own portfolio of mobile games\n\nAppLovin Inc. is shooting for a valuation of more than $30 billion as the app-software company set terms for its initial public offering in its bid to catch a sizable piece of a $200 billion mobile app market.\nOn last Wednesday, AppLovin named a price range for its shares of $75 to $85 apiece, a price that could value the company at more than $30 billion. The company plans to sell at least 25 million shares and have about 360 million shares outstanding, which would trade on the Nasdaq under the ticker “APP.”\nThe Palo Alto, Calif., company, which will be a decade old in July, makes marketing, monetization and analytics software that helps app developers grow their businesses. It also owns a portfolio of more than 200 free-to-play mobile games with in-app purchases. The expected valuation of AppLovin dwarfs that of a recent comparable IPO, Unity Software Inc.,which was valued at nearly $14 billion at the time of its IPO in September.\nIn its Securities and Exchange Commission filing, AppLovin said it sees a total market opportunity of about $189 billion, with $101 billion of that in in-app advertising revenue and about $88 billion in worldwide direct-game spending, citing IDC 2020 figures. AppLovin expects that market opportunity to grow to $283 billion by 2024.\nHere are five things to know about AppLovin.\nThe cost of business more than doubled, and Apple and Google are a reason\nAppLovin said it took in $1.45 billion in revenue in 2020, resulting in a loss of $125.9 million, versus 2019 revenue of $994.1 million and net income of $119 million. In 2018, the company booked revenue of $483.4 million for a loss of $260 million.\nThe big cost hike in 2020 versus 2019 was a 130% jump in cost-of-business expenses to $555.6 million, with $112 million of it due to payment-processing fees. Those payment-processing fees are the same kind that Epic Games balked about paying to Apple Inc.’s App Store and Alphabet Inc.’s Google Play store, that ran as high as 30% of purchases.\n“The mobile-app ecosystem depends in part on a relatively small number of third-party distribution platforms, such as the Apple App Store, the Google Play store, and Facebook, some of which are direct competitors,” AppLovin said in its S-1. “We derive significant revenue from the distribution of our apps through these third-party platforms and almost all of our [in-app purchases] are made through the payment processing systems of these third-party platforms.”\nNearly a quarter of proceeds will go to pay down debt\nAppLovin estimates it stands to bring in net proceeds of about $1.74 billion if it prices at the mid-point of its range.\nOf that, the company said it plans to use about $400 million to pay off debt under its revolving credit facility. Currently, AppLovin lists $1.6 billion in debt.\n“Additionally, we expect to use a portion of the net proceeds to enter into strategic acquisitions and partnerships,” AppLovin said. “However, other than our pending acquisition of Adjust, we do not have definitive agreements or commitments for any material acquisitions or partnerships at this time.”\nAcquisitions are part of its growth strategy\nMost recently, AppLovin announced plans to acquire Germany-based mobile-app measurement and marketing company Adjust. While AppLovin did not disclose terms of the deal, Crunchbase estimated the price at $1 billion.\nThe company did state in its S-1 that it has “invested over $1 billion across 15 strategic acquisitions and partnerships” since the beginning of 2018.\nAppLovin acquired mobile-game developer Machine Zone Inc. last May for an undisclosed amount, although Crunchbase estimated the deal at $500 million.\nThat follows acquisitions of software development kit-management platform SafeDK in 2019, in-app header bidding company Max Inc. in 2018, and Germany-based mobile-ad network Moqoqo in 2014.\n“We will continue to explore and evaluate additional acquisitions, some of which may be the same size or even larger in scale and investment than the Machine Zone acquisition and our pending acquisition of Adjust,” the company said.\nKKR has the lion’s share of voting control\nThe company plans to offer Class A shares in the IPO, which carry one vote, while early investors’ Class B shares will carry 20 votes. AppLovin has raised $1.4 billion in funding from investors, according to Crunchbase.\nHolding the reins will be KKR Denali Holdings, which will hold 72.4% of Class B shares after the offering, for 67.4% of the voting power. Other Class B shareholders include Applovin Chief Executive and co-founder Adam Foroughi, who will own 19.4% of the Class B shares with 18.1% voting rights, and Chief Financial Officer Herald Chen, with 3.2% of the Class B shares and 3% of voting rights.\nThe company will also establish a nonvoting class of shares, though those shares do not yet exist.\nAttempt to sell to Chinese firm failed, and KKR stepped in\nIf it wasn’t for U.S. concerns about investments in strategic assets from China, KKR may have never got involved and AppLovin would not have gone public.\nIn September 2016, AppLovin agreed to be acquired outright by Chinese private-equity firm Orient Hontai Capital for $1.4 billion. A little over a year later, that deal was scrapped — reportedly after the Committee on Foreign Investment in the United States pushed back on the deal over customer data concerns — and AppLovin agreed to take an $841 million debt investment from Orient Hontai. Prior to that deal, Orient Hontai had invested $140 million in the company; currently, Orient Hontai owns 26.2 million Class A shares.\nIn July 2018, KKR & Co. invested $400 million for a minority stake in AppLovin of roughly 110 million shares. At the suggested IPO price, that $400 million investment would be worth more than $8 billion.","news_type":1},"isVote":1,"tweetType":1,"viewCount":416,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":0,"langContent":"EN","totalScore":0},{"id":347640015,"gmtCreate":1618494727837,"gmtModify":1704711726720,"author":{"id":"3575667468626214","authorId":"3575667468626214","name":"yner","avatar":"https://static.laohu8.com/default-avatar.jpg","crmLevel":1,"crmLevelSwitch":0,"followedFlag":false,"idStr":"3575667468626214","authorIdStr":"3575667468626214"},"themes":[],"htmlText":"??","listText":"??","text":"??","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":0,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/347640015","repostId":"1125635474","repostType":4,"repost":{"id":"1125635474","pubTimestamp":1618295945,"share":"https://ttm.financial/m/news/1125635474?lang=&edition=fundamental","pubTime":"2021-04-13 14:39","market":"us","language":"en","title":"AppLovin: Capitalizing On The Surging Growth Of Mobile Game Apps","url":"https://stock-news.laohu8.com/highlight/detail?id=1125635474","media":"seekingalpha","summary":"SummaryAppLovin announced its IPO price range of $75 to $85 per share. The company is selling 25 mil","content":"<p><b>Summary</b></p><ul><li>AppLovin announced its IPO price range of $75 to $85 per share. The company is selling 25 million shares.</li><li>At the high end of the IPO price range, the company is aiming to raise $2.1 billion, and it would be valued at $30.4 billion.</li><li>Our base case valuation of AppLovin is an EV of $35.1 billion, implied market cap of $35.7 billion, and target price per share of $99.8.</li><li>The company has been a key beneficiary of the surging growth of popular game apps.</li><li>Despite strong sales growth, its operating margins worsened in 2020 due to higher operating expenses.</li></ul><p><b>Investment Thesis</b></p><p>AppLovin<a href=\"https://laohu8.com/S/APP\">AppLovin Corporation</a>  is one of the key beneficiaries of the exploding demand for mobile apps, especially for mobile games. The company's sales growth has been surging in recent years as the company has benefited from both organic growth and has been aggressive in making numerous acquisitions in the past three years.</p><p>Most developers lack access to the marketing, monetization, and data analytics tools required to stand out among the more than 4.8 million mobile apps available on the Apple App Store(NASDAQ:AAPL)and Google Play Store(NASDAQ:GOOG)(NASDAQ:GOOGL). The company's products and services help many app developers to scale up their business and create a successful app that can be sustained long term. This is where the company's capabilities in app development, marketing, and analytics really stand out.</p><p>There are more than 1.3 million mobile gaming apps on the Apple App Store and Google Play Store.Mobile gamingaccounts for 39% of worldwide app downloads and for 72% of all app store consumer spend by value, according to Sensor Tower.</p><p>Although the company's operating margins declined in the past two years mainly due to higher operating expenses, we believe that the company's profit margins will turn around this year due to a combination of higher economies of scale and lower operating expenses as a percentage of revenues.</p><p><b>Comparable Companies Valuation Analysis</b></p><p>In the comparable companies valuation analysis, we used the following companies as comps to AppLovin:</p><ul><li>Unity Software (U)</li><li>Roblox Corp. (RBLX)</li><li>Activision Blizzard (ATVI)</li><li>Zynga (ZNGA)</li></ul><p>Our base case valuation of AppLovin is an EV of $35.1 billion, implied market cap of $35.7 billion, and implied target price per share of $99.8. This represents 17% upside from the high end of the IPO price range of $85. We have a POSITIVE view of the AppLovin IPO.</p><p>Our base case valuation of AppLovin is based on a 16x EV/S multiple (using 2021 sales estimate), which represents a 10% higher than the average EV/S multiple of the comps. It is also below the EV/S multiple of Unity Software and Roblox which trade at EV/S multiple of 26.8x and 19.2x, respectively.</p><p>The comps' average sales growth in 2020 and 2021 are similar to the sales growth rates of AppLovin in this period. Among the comps, Roblox has the highest sales growth and Activision has the lowest sales growth in 2020 and 2021. Overall, we have assumed higher sales growth for AppLovin versus its peers in 2021 and 2022 and this is one of main reasons why we have applied a 10% higher valuation multiple than the comps.</p><p>However, Roblox is trading at 19.2x EV/S in 2021 and we have applied a 16x EV/S multiple for AppLovin (17% lower valuation multiple than Roblox). We believe the market will attach a slightly higher valuation multiple for Roblox than AppLovin, mainly due to the former company's higher sales growth and operating margins in 2021, and its brand is more recognized worldwide.</p><p><img src=\"https://static.tigerbbs.com/b47032411f633c63c676152889baa874\" tg-width=\"553\" tg-height=\"350\" referrerpolicy=\"no-referrer\"><img src=\"https://static.tigerbbs.com/3ea8b356b98201f398b48bd4d57e507a\" tg-width=\"552\" tg-height=\"455\" referrerpolicy=\"no-referrer\"><img src=\"https://static.tigerbbs.com/8a2dfe8877740e842bb1e143c157e39c\" tg-width=\"551\" tg-height=\"370\" referrerpolicy=\"no-referrer\"><img src=\"https://static.tigerbbs.com/0aec05aa4790c780a95e2527c62896e9\" tg-width=\"554\" tg-height=\"548\" referrerpolicy=\"no-referrer\"><img src=\"https://static.tigerbbs.com/8ee98f1dd0f1c0becb865f331a283068\" tg-width=\"550\" tg-height=\"340\" referrerpolicy=\"no-referrer\"><img src=\"https://static.tigerbbs.com/96321e40b2bb290d968a20e0a3832de8\" tg-width=\"554\" tg-height=\"362\" referrerpolicy=\"no-referrer\"><img src=\"https://static.tigerbbs.com/327d495d893132d12a74cc91d93df055\" tg-width=\"553\" tg-height=\"367\" referrerpolicy=\"no-referrer\"><b>Income Statement Forecast</b></p><p>AppLovin generated sales of $1,451.1 million and an operating loss of $62.1 million in 2020. The company's sales have nearly tripled from 2018 to 2020. The company's operating margins declined from 50.1% in 2018 to 19.5% in 2019 and -4.3% in 2020. The major reasons for the lower operating margins are due to higher cost of sales, sales &amp; marketing, R&amp;D, and other operating expenses as a percentage of sales.</p><p>We estimate AppLovin to generate sales of $2.2 billion (up 51% YoY) and an operating profit of $65.2 million in 2021. From 2020 to 2025, we have assumed the company's sales to grow at a CAGR of 28.6%. We have also assumed the company's operating margin to turn positive to 3% in 2021 from -4.3% in 2020. We estimate its operating margins to improve further to 6.8% in 2022, 10.6% in 2023, and 17.8% in 2025. We estimate AppLovin to have sales of $5.1 billion and an operating profit of $0.9 billion in 2025.</p><p><img src=\"https://static.tigerbbs.com/4e58f808f42f4c3a1e238b587f637063\" tg-width=\"547\" tg-height=\"669\" referrerpolicy=\"no-referrer\"><img src=\"https://static.tigerbbs.com/1026d63d84ac8f26d8391d7e91317b9e\" tg-width=\"547\" tg-height=\"449\" referrerpolicy=\"no-referrer\"><img src=\"https://static.tigerbbs.com/b9bf6e155cbc281373a8fac78fd3e08b\" tg-width=\"547\" tg-height=\"488\" referrerpolicy=\"no-referrer\"><b>Company Background</b></p><p>Thecompanyoriginally started its business helping customers to improve the smartphone customer experiences for all the users. In recent years, the company has become a much bigger player in the mobile gaming segment and it also helps developers to grow their users and improve the monetization of their apps.</p><p>According to IDC, the company's totalmarket opportunityis estimated to be $189 billion in 2020, growing to $283 billion in 2024, representing a CAGR of 10.6% in this period. This total market size of $184 billion was derived by adding the worldwide total in-app advertising revenue of $101 billion (including gaming and non-gaming in-app display, video, and other advertising, but excluding in-app search advertising) and worldwide direct game spending of $88 billion for 2020.</p><p>AppLovin has invested about $1 billion in 15 acquisitions and partnerships since 2018. It owns more than 200 free-to-play mobile games from 12 studios.AppLovinlaunched a gaming business unit called Lion Studios in July 2018. It also acquired a company called Max in September 2018. Max provides in-app bidding service, which is a type of advertising where mobile publishers can sell their ad inventory in an auction method). AppLovin also owns and operates gaming studios Machine Zone, Belka Games, PeopleFun and Firecraft Studios.</p><p>In February 2021, AppLovin signed an agreement to purchase Adjust for $1 billion (including $598 million in cash and $352 million in convertible securities, and an assumption of up to $40 million in debt). Adjust is a leading mobile app analytics&amp; marketing products company in Germany. Adjust provides tools to prevent mobile advertising fraud and better measure the user base. This acquisition is expected to close in 1H 2021.</p><p>In the IPO prospectus, the company mentioned that it plans to use $75 million of its Class A common shares for charitable purposes. If the company raises $1 billion in the IPO, this would represent nearly 7.5% of total amount. This is a bit unusual to have this large number of shares allocated for charitable purposes. We applaud this move by the CEO and its senior management. Adam Foroughi, the co-founder and CEO of AppLovin, previously co-founded two advertising technology companies, Lifestreet Media Inc. and Social Hour Inc.</p><p><b>AppLovin (Key Metrics)</b></p><p>The table provides the company's key metrics. There has been a strong increase in the monthly active payers which jumped from 0.3 million in 2018 to 1.0 million in 2019 and 1.5 million in 2020. However, the enterprise clients declined from 192 in 2018 to 172 in 2020. The company defines its enterprise clients as third-party business clients from which it has collected more than $125,000 of revenue in the trailing 12 months. Average revenue per monthly active payer increased from $11 in 2018 to $32 in 2019 and $41 in 2020.</p><p>The company's main businesses comprise of its platform and apps. Its platform business mainly includes AppLovin Core Technologies and AppLovin Software. Its apps consist of over 200 free-to-play mobile games in five genres, run by 12 studios including those owned by the company and also those it partners with. The five major game genres offering by the company include casual, hypercasual, match-three, midcore, and card/casino. No single game of the company contributed more than 16% of its total revenue in 2020.</p><p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/0638b1ba5528bc65ee975156f3bcfd46\" tg-width=\"605\" tg-height=\"225\" referrerpolicy=\"no-referrer\"><span>Source: Company data</span></p><p>The company collects revenue from two sources including business clients and consumers. In 2020, business clients accounted for 49% of total revenue and consumers represented 51% of total revenue.</p><p><b>Business Clients:</b></p><ul><li>The company has a wide range of business clients including Facebook(NASDAQ:FB), Google, and a number of much smaller companies. It had 1,400 business clients at the end of 2020. Nearly 99% of the company's business revenue came from its 172 enterprise clients as of December 31, 2020. The company also had a solid customer retention rate of 118% in 2020 for its enterprise clients.</li><li>AppLovin Software is a comprehensive suite of tools for developers to get their mobile apps discovered and downloaded by the right users, optimize return on marketing spend, and maximize monetization of engagement. AppLovin Software reaches an audience of over 410 million users per day. The company's software solutions provide tools for mobile app developers to expand their businesses by optimizing and automating the marketing and monetization of their apps. Since inception, the company's platform has driven more than 6 billion mobile app installs.</li><li>The company's main software includes AppDiscovery and MAX. Business clients use AppDiscovery to automate, optimize, and manage their app user acquisition investments. They set marketing and user growth goals, and AppDiscovery optimizes their ad spend in an effort to achieve their return on advertising spend targets and other marketing objectives. AppDiscovery comprises the vast majority of revenue from its software.</li><li>Revenue is generated from the advertisers, typically on a performance-based, cost-per-install basis, and shared with the company's advertising publishers, typically on a cost per impression model. Business clients use MAX to optimize purchases of app ad inventory.</li><li>The Compass Analytics tool within MAX provides insights to manage against key performance indicators, understand the long-term value of users, and help manage profitability. Revenue from MAX is generated based on a percentage of client spend. Business clients that purchase advertising inventory from the company's Apps are able to target highly relevant users from its diverse and global portfolio of over 200 mobile games.</li></ul><p><b>Consumers:</b></p><ul><li>The company has also developed and invested in AppLovin Apps, which consist of a globally diversified portfolio of over 200 free-to-play mobile games. These Apps are accessed by nearly 32 million users every day. Consumer revenue is generated when the user of its apps makes an in-app purchase (IAP).</li><li>The company's apps are mostly free-to-play mobile games and generate consumer revenue through in-app purchase of virtual items which are used to enhance gameplay and improve the probabilities of the mobile game progression opportunities.</li><li>During the three months ended December 31, 2020, the company had an average of 2.1 million monthly active payers (MAPs) across its portfolio of apps. Over that period, the company had an average revenue per monthly active payer of $41.</li></ul><p><img src=\"https://static.tigerbbs.com/17a469e7db2359f56bb1fec2388f2826\" tg-width=\"555\" tg-height=\"454\" referrerpolicy=\"no-referrer\"><b>Major Competitors</b></p><p>In the mobile games and other mobile game app related businesses, the major competitors include Unity Software, Activision Blizzard, Tencent Holdings(OTCPK:TCEHY), and Zynga. In the advertising platform business, the company's major competitors include Facebook, Alphabet, and Amazon (AMZN). Many of these companies are also AppLovin's partners and customers. In addition to these mega companies, the company faces competition from thousands of smaller competitors worldwide.</p><p>Balance Sheet and Cash Flow Analysis</p><p>The company has a leveraged balance sheet. Net debt increased from $0.8 billion at the end of 2019 to $1.3 billion at the end of 2020. Net debt to adjusted EBITDA ratio also rose from 260% at the end of 2019 to 315% at the end of 2020. After KKR invested in the company in 2018, it appears that AppLovin was advised to add more leverage and expand the business more aggressively through numerous acquisitions. Through this IPO, the company's balance sheet will become much stronger.</p><p>The company generated positive cash flow from operations and free cash flow in the past two years. Its cash flow from operations and free cash flow averaged $211 million and $207 million, respectively, in 2019 and 2020.</p><p><b>Conclusion</b></p><p>AppLovin is one of the key beneficiaries of the surging growth of game-related mobile apps. Our base case valuation of AppLovin is EV of $35.1 billion, implied market cap of $35.7 billion, and target price per share of $99.8, which is about 17% higher than the high end of the IPO price range. In recent months, some of the major game-related IPOs including Roblox and Unity Software have done really well, although their share prices have come down from their recent highs. AppLovin will likely be compared against these stocks.</p><p>Despite AppLovin's decline in operating margins in 2020 due to higher operating expenses, it is more likely that investors will focus on the company's ability to continue to scale up the business and generate higher sales growth. There remains some uncertainty in terms of how quickly the company is willing to focus on the probability at the expense of lower sales growth. In addition, there are some concerns about the recent weakening sentiment on the tech-related IPOs.</p>","source":"seekingalpha","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>AppLovin: Capitalizing On The Surging Growth Of Mobile Game Apps</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nAppLovin: Capitalizing On The Surging Growth Of Mobile Game Apps\n</h2>\n\n<h4 class=\"meta\">\n\n\n2021-04-13 14:39 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://seekingalpha.com/article/4418129-applovin-capitalizing-growth-mobile-game-apps><strong>seekingalpha</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>SummaryAppLovin announced its IPO price range of $75 to $85 per share. The company is selling 25 million shares.At the high end of the IPO price range, the company is aiming to raise $2.1 billion, and...</p>\n\n<a href=\"https://seekingalpha.com/article/4418129-applovin-capitalizing-growth-mobile-game-apps\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"APP":"AppLovin Corporation"},"source_url":"https://seekingalpha.com/article/4418129-applovin-capitalizing-growth-mobile-game-apps","is_english":true,"share_image_url":"https://static.laohu8.com/5a36db9d73b4222bc376d24ccc48c8a4","article_id":"1125635474","content_text":"SummaryAppLovin announced its IPO price range of $75 to $85 per share. The company is selling 25 million shares.At the high end of the IPO price range, the company is aiming to raise $2.1 billion, and it would be valued at $30.4 billion.Our base case valuation of AppLovin is an EV of $35.1 billion, implied market cap of $35.7 billion, and target price per share of $99.8.The company has been a key beneficiary of the surging growth of popular game apps.Despite strong sales growth, its operating margins worsened in 2020 due to higher operating expenses.Investment ThesisAppLovinAppLovin Corporation  is one of the key beneficiaries of the exploding demand for mobile apps, especially for mobile games. The company's sales growth has been surging in recent years as the company has benefited from both organic growth and has been aggressive in making numerous acquisitions in the past three years.Most developers lack access to the marketing, monetization, and data analytics tools required to stand out among the more than 4.8 million mobile apps available on the Apple App Store(NASDAQ:AAPL)and Google Play Store(NASDAQ:GOOG)(NASDAQ:GOOGL). The company's products and services help many app developers to scale up their business and create a successful app that can be sustained long term. This is where the company's capabilities in app development, marketing, and analytics really stand out.There are more than 1.3 million mobile gaming apps on the Apple App Store and Google Play Store.Mobile gamingaccounts for 39% of worldwide app downloads and for 72% of all app store consumer spend by value, according to Sensor Tower.Although the company's operating margins declined in the past two years mainly due to higher operating expenses, we believe that the company's profit margins will turn around this year due to a combination of higher economies of scale and lower operating expenses as a percentage of revenues.Comparable Companies Valuation AnalysisIn the comparable companies valuation analysis, we used the following companies as comps to AppLovin:Unity Software (U)Roblox Corp. (RBLX)Activision Blizzard (ATVI)Zynga (ZNGA)Our base case valuation of AppLovin is an EV of $35.1 billion, implied market cap of $35.7 billion, and implied target price per share of $99.8. This represents 17% upside from the high end of the IPO price range of $85. We have a POSITIVE view of the AppLovin IPO.Our base case valuation of AppLovin is based on a 16x EV/S multiple (using 2021 sales estimate), which represents a 10% higher than the average EV/S multiple of the comps. It is also below the EV/S multiple of Unity Software and Roblox which trade at EV/S multiple of 26.8x and 19.2x, respectively.The comps' average sales growth in 2020 and 2021 are similar to the sales growth rates of AppLovin in this period. Among the comps, Roblox has the highest sales growth and Activision has the lowest sales growth in 2020 and 2021. Overall, we have assumed higher sales growth for AppLovin versus its peers in 2021 and 2022 and this is one of main reasons why we have applied a 10% higher valuation multiple than the comps.However, Roblox is trading at 19.2x EV/S in 2021 and we have applied a 16x EV/S multiple for AppLovin (17% lower valuation multiple than Roblox). We believe the market will attach a slightly higher valuation multiple for Roblox than AppLovin, mainly due to the former company's higher sales growth and operating margins in 2021, and its brand is more recognized worldwide.Income Statement ForecastAppLovin generated sales of $1,451.1 million and an operating loss of $62.1 million in 2020. The company's sales have nearly tripled from 2018 to 2020. The company's operating margins declined from 50.1% in 2018 to 19.5% in 2019 and -4.3% in 2020. The major reasons for the lower operating margins are due to higher cost of sales, sales & marketing, R&D, and other operating expenses as a percentage of sales.We estimate AppLovin to generate sales of $2.2 billion (up 51% YoY) and an operating profit of $65.2 million in 2021. From 2020 to 2025, we have assumed the company's sales to grow at a CAGR of 28.6%. We have also assumed the company's operating margin to turn positive to 3% in 2021 from -4.3% in 2020. We estimate its operating margins to improve further to 6.8% in 2022, 10.6% in 2023, and 17.8% in 2025. We estimate AppLovin to have sales of $5.1 billion and an operating profit of $0.9 billion in 2025.Company BackgroundThecompanyoriginally started its business helping customers to improve the smartphone customer experiences for all the users. In recent years, the company has become a much bigger player in the mobile gaming segment and it also helps developers to grow their users and improve the monetization of their apps.According to IDC, the company's totalmarket opportunityis estimated to be $189 billion in 2020, growing to $283 billion in 2024, representing a CAGR of 10.6% in this period. This total market size of $184 billion was derived by adding the worldwide total in-app advertising revenue of $101 billion (including gaming and non-gaming in-app display, video, and other advertising, but excluding in-app search advertising) and worldwide direct game spending of $88 billion for 2020.AppLovin has invested about $1 billion in 15 acquisitions and partnerships since 2018. It owns more than 200 free-to-play mobile games from 12 studios.AppLovinlaunched a gaming business unit called Lion Studios in July 2018. It also acquired a company called Max in September 2018. Max provides in-app bidding service, which is a type of advertising where mobile publishers can sell their ad inventory in an auction method). AppLovin also owns and operates gaming studios Machine Zone, Belka Games, PeopleFun and Firecraft Studios.In February 2021, AppLovin signed an agreement to purchase Adjust for $1 billion (including $598 million in cash and $352 million in convertible securities, and an assumption of up to $40 million in debt). Adjust is a leading mobile app analytics& marketing products company in Germany. Adjust provides tools to prevent mobile advertising fraud and better measure the user base. This acquisition is expected to close in 1H 2021.In the IPO prospectus, the company mentioned that it plans to use $75 million of its Class A common shares for charitable purposes. If the company raises $1 billion in the IPO, this would represent nearly 7.5% of total amount. This is a bit unusual to have this large number of shares allocated for charitable purposes. We applaud this move by the CEO and its senior management. Adam Foroughi, the co-founder and CEO of AppLovin, previously co-founded two advertising technology companies, Lifestreet Media Inc. and Social Hour Inc.AppLovin (Key Metrics)The table provides the company's key metrics. There has been a strong increase in the monthly active payers which jumped from 0.3 million in 2018 to 1.0 million in 2019 and 1.5 million in 2020. However, the enterprise clients declined from 192 in 2018 to 172 in 2020. The company defines its enterprise clients as third-party business clients from which it has collected more than $125,000 of revenue in the trailing 12 months. Average revenue per monthly active payer increased from $11 in 2018 to $32 in 2019 and $41 in 2020.The company's main businesses comprise of its platform and apps. Its platform business mainly includes AppLovin Core Technologies and AppLovin Software. Its apps consist of over 200 free-to-play mobile games in five genres, run by 12 studios including those owned by the company and also those it partners with. The five major game genres offering by the company include casual, hypercasual, match-three, midcore, and card/casino. No single game of the company contributed more than 16% of its total revenue in 2020.Source: Company dataThe company collects revenue from two sources including business clients and consumers. In 2020, business clients accounted for 49% of total revenue and consumers represented 51% of total revenue.Business Clients:The company has a wide range of business clients including Facebook(NASDAQ:FB), Google, and a number of much smaller companies. It had 1,400 business clients at the end of 2020. Nearly 99% of the company's business revenue came from its 172 enterprise clients as of December 31, 2020. The company also had a solid customer retention rate of 118% in 2020 for its enterprise clients.AppLovin Software is a comprehensive suite of tools for developers to get their mobile apps discovered and downloaded by the right users, optimize return on marketing spend, and maximize monetization of engagement. AppLovin Software reaches an audience of over 410 million users per day. The company's software solutions provide tools for mobile app developers to expand their businesses by optimizing and automating the marketing and monetization of their apps. Since inception, the company's platform has driven more than 6 billion mobile app installs.The company's main software includes AppDiscovery and MAX. Business clients use AppDiscovery to automate, optimize, and manage their app user acquisition investments. They set marketing and user growth goals, and AppDiscovery optimizes their ad spend in an effort to achieve their return on advertising spend targets and other marketing objectives. AppDiscovery comprises the vast majority of revenue from its software.Revenue is generated from the advertisers, typically on a performance-based, cost-per-install basis, and shared with the company's advertising publishers, typically on a cost per impression model. Business clients use MAX to optimize purchases of app ad inventory.The Compass Analytics tool within MAX provides insights to manage against key performance indicators, understand the long-term value of users, and help manage profitability. Revenue from MAX is generated based on a percentage of client spend. Business clients that purchase advertising inventory from the company's Apps are able to target highly relevant users from its diverse and global portfolio of over 200 mobile games.Consumers:The company has also developed and invested in AppLovin Apps, which consist of a globally diversified portfolio of over 200 free-to-play mobile games. These Apps are accessed by nearly 32 million users every day. Consumer revenue is generated when the user of its apps makes an in-app purchase (IAP).The company's apps are mostly free-to-play mobile games and generate consumer revenue through in-app purchase of virtual items which are used to enhance gameplay and improve the probabilities of the mobile game progression opportunities.During the three months ended December 31, 2020, the company had an average of 2.1 million monthly active payers (MAPs) across its portfolio of apps. Over that period, the company had an average revenue per monthly active payer of $41.Major CompetitorsIn the mobile games and other mobile game app related businesses, the major competitors include Unity Software, Activision Blizzard, Tencent Holdings(OTCPK:TCEHY), and Zynga. In the advertising platform business, the company's major competitors include Facebook, Alphabet, and Amazon (AMZN). Many of these companies are also AppLovin's partners and customers. In addition to these mega companies, the company faces competition from thousands of smaller competitors worldwide.Balance Sheet and Cash Flow AnalysisThe company has a leveraged balance sheet. Net debt increased from $0.8 billion at the end of 2019 to $1.3 billion at the end of 2020. Net debt to adjusted EBITDA ratio also rose from 260% at the end of 2019 to 315% at the end of 2020. After KKR invested in the company in 2018, it appears that AppLovin was advised to add more leverage and expand the business more aggressively through numerous acquisitions. Through this IPO, the company's balance sheet will become much stronger.The company generated positive cash flow from operations and free cash flow in the past two years. Its cash flow from operations and free cash flow averaged $211 million and $207 million, respectively, in 2019 and 2020.ConclusionAppLovin is one of the key beneficiaries of the surging growth of game-related mobile apps. Our base case valuation of AppLovin is EV of $35.1 billion, implied market cap of $35.7 billion, and target price per share of $99.8, which is about 17% higher than the high end of the IPO price range. In recent months, some of the major game-related IPOs including Roblox and Unity Software have done really well, although their share prices have come down from their recent highs. AppLovin will likely be compared against these stocks.Despite AppLovin's decline in operating margins in 2020 due to higher operating expenses, it is more likely that investors will focus on the company's ability to continue to scale up the business and generate higher sales growth. There remains some uncertainty in terms of how quickly the company is willing to focus on the probability at the expense of lower sales growth. In addition, there are some concerns about the recent weakening sentiment on the tech-related IPOs.","news_type":1},"isVote":1,"tweetType":1,"viewCount":332,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":0,"langContent":"EN","totalScore":0},{"id":323311087,"gmtCreate":1615303015749,"gmtModify":1704780904847,"author":{"id":"3575667468626214","authorId":"3575667468626214","name":"yner","avatar":"https://static.laohu8.com/default-avatar.jpg","crmLevel":1,"crmLevelSwitch":0,"followedFlag":false,"idStr":"3575667468626214","authorIdStr":"3575667468626214"},"themes":[],"htmlText":"Hold","listText":"Hold","text":"Hold","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":0,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/323311087","repostId":"1101563548","repostType":4,"repost":{"id":"1101563548","pubTimestamp":1615301161,"share":"https://ttm.financial/m/news/1101563548?lang=&edition=fundamental","pubTime":"2021-03-09 22:46","market":"us","language":"en","title":"These tech stocks have lost more than 20% of their value so far this year","url":"https://stock-news.laohu8.com/highlight/detail?id=1101563548","media":"cnbc","summary":"KEY POINTS\n\nSome of the once high-flying tech stocks have reversed course and shaved high percentage","content":"<div>\n<p>KEY POINTS\n\nSome of the once high-flying tech stocks have reversed course and shaved high percentages off their stock prices.\nTech shares hinted toward recovery in the premarket Tuesday as bond yields...</p>\n\n<a href=\"https://www.cnbc.com/2021/03/09/these-tech-stocks-have-lost-more-than-20percent-of-their-value-this-year.html\">Web Link</a>\n\n</div>\n","source":"cnbc_highlight","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>These tech stocks have lost more than 20% of their value so far this year</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; 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overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nThese tech stocks have lost more than 20% of their value so far this year\n</h2>\n\n<h4 class=\"meta\">\n\n\n2021-03-09 22:46 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://www.cnbc.com/2021/03/09/these-tech-stocks-have-lost-more-than-20percent-of-their-value-this-year.html><strong>cnbc</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>KEY POINTS\n\nSome of the once high-flying tech stocks have reversed course and shaved high percentages off their stock prices.\nTech shares hinted toward recovery in the premarket Tuesday as bond yields...</p>\n\n<a href=\"https://www.cnbc.com/2021/03/09/these-tech-stocks-have-lost-more-than-20percent-of-their-value-this-year.html\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"AI":"C3.ai, Inc.","U":"Unity Software Inc.","XM":"Qualtrics International","SPLK":"Splunk Inc","LMND":"Lemonade, Inc.","SNOW":"Snowflake"},"source_url":"https://www.cnbc.com/2021/03/09/these-tech-stocks-have-lost-more-than-20percent-of-their-value-this-year.html","is_english":true,"share_image_url":"https://static.laohu8.com/72bb72e1b84c09fca865c6dcb1bbcd16","article_id":"1101563548","content_text":"KEY POINTS\n\nSome of the once high-flying tech stocks have reversed course and shaved high percentages off their stock prices.\nTech shares hinted toward recovery in the premarket Tuesday as bond yields stabilized, leading investors to buying into the dip.\nHowever, the early rise in share price didn’t completely recoup some of the losses.\n\nSome of the once high-flying tech stocks have reversed course and shaved high percentages off their stock prices, after rising bond yields raised concerns about valuations and higher interest rates.\nInvestors saw a rapid rise in bond yields, which move inversely to prices, over the past few weeks. As rates jumped, tech shares (especially ones with lofty valuations and little to no profit) traded lower.\nThat came as Wall Street also expected strong economic recovery as some pandemic restrictions are lifted and vaccines continue to roll out, so they poured into more cyclical stocks. There was also the fear that pandemic recovery could lead to concerning levels of inflation, which may hit tech stocks especially hard as they’ve been relying on easy borrowing for superior growth.\nTech shares hinted toward recovery in the premarket Tuesday as bond yields stabilized, leading investors to buy into the dip. However, the early rise in share prices Tuesday didn’t completely recoup some of the losses.\nCNBC compiled a list of some of the notable tech companies that have shed more than 20% this year as of Tuesday morning:\n\nC3.ai was among the biggest shedders, down more than 39% for the year. The company’s stock was up 2.5% in the premarket. The enterprise artificial intelligence company recently released its first earnings report as a public company, disappointing investors.\n\n\nVideo game software developer Unity has shed nearly 37% for the year. The company’s stock was up about 4.4% in the premarket. Shares began to fall in February after the company provided a forecast that failed to meet analysts’ most optimistic estimates.\n\n\nStichFix shed more than 29% this year, with steep losses following the company’s latest earnings report that was released Monday afternoon. StichFix’s revenue came in short of Wall Street forecasts. The company also cut guidance for the fiscal year that begins in July due to lengthened cycle times. Shares were down more than 22% in the premarket.\n\n\nLemonade was also trading down 26%. Shares were up about 4.2% in the premarket. The insurance company issued conservative guidance for this year as part of its fourth quarter 2020 earnings on Monday.\n\n\nCloud software vendor Qualtrics was down nearly 23% from its first day of trading on Jan 28. Shares were up 2.6% in the premarket.\n\n\nSnowflake has lost more than 21%, as investors pull back from what some called bubble-like valuations. The stock was up 3.7% in the premarket.\n\n\nSoftware company Splunk has shed about 21% this year. Shares were up 2.6% in the premarket.","news_type":1},"isVote":1,"tweetType":1,"viewCount":235,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":0,"langContent":"EN","totalScore":0},{"id":323319262,"gmtCreate":1615302964556,"gmtModify":1704780903055,"author":{"id":"3575667468626214","authorId":"3575667468626214","name":"yner","avatar":"https://static.laohu8.com/default-avatar.jpg","crmLevel":1,"crmLevelSwitch":0,"followedFlag":false,"idStr":"3575667468626214","authorIdStr":"3575667468626214"},"themes":[],"htmlText":"????","listText":"????","text":"????","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":2,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/323319262","repostId":"1179750666","repostType":4,"repost":{"id":"1179750666","weMediaInfo":{"introduction":"为用户提供金融资讯、行情、数据，旨在帮助投资者理解世界，做投资决策。","home_visible":1,"media_name":"老虎资讯综合","id":"102","head_image":"https://static.tigerbbs.com/8274c5b9d4c2852bfb1c4d6ce16c68ba"},"pubTimestamp":1615300337,"share":"https://ttm.financial/m/news/1179750666?lang=&edition=fundamental","pubTime":"2021-03-09 22:32","market":"us","language":"en","title":"Nasdaq jumps at open as tech stocks gain ground","url":"https://stock-news.laohu8.com/highlight/detail?id=1179750666","media":"老虎资讯综合","summary":"U.S. stocks jumped on Tuesday after bond yields declined, causing investors to buy the dip in beaten","content":"<p>U.S. stocks jumped on Tuesday after bond yields declined, causing investors to buy the dip in beaten-up technology shares.</p><p>The Dow Jones Industrial Average rose 152 points, or 0.5%. The S&amp;P 500 gained 1.2%. The tech-heavy Nasdaq Composite climbed 2.5%. Tesla shares popped 6.8%, while Apple, Amazon, Microsoft, Netflix and Alphabet all gained at least 2%.</p><p><img src=\"https://static.tigerbbs.com/bd0341e7bb4c802052f3c5aeb75c7435\" tg-width=\"1080\" tg-height=\"456\" referrerpolicy=\"no-referrer\"></p><p>Technology shares rebounded from sharp losses as bond yields stabilized. The&nbsp;10-year Treasury yield&nbsp;fell more than 6 basis points to 1.52%. It traded as high as 1.62% on Monday.</p><p>\"A lot of these tech stocks have become oversold on a short-term basis.&nbsp;Therefore, it's not a big surprise that they're seeing a nice bounce,\" said Matt Maley, chief market strategist at Miller Tabak. \"The question will be whether this bounce is a strong one...or a 'dead cat bounce' that doesn't last very long at all.\"</p><p>On Monday, the Dow rallied more than 300 points on investor optimism about the economic comeback from the pandemic. Yet tech shares didn't participate on Monday, with the Nasdaq Composite shedding 2% as a rapid rise in rates caused investors to rotate out of pricey tech shares.</p><p>The tech benchmark closed more than 10% below its Feb.12 closing high, falling into correction territory. High-growth names have been pressured lately as rising rates make their future profits less valuable today, compressing the stocks' lofty valuations.</p><p>\"Right now the market is broadening out and we think in an underlying sense the bull market is strengthening and that will play to our benefit over the longer term,\" said Cathie Wood of Ark Investment Management on CNBC's \"Closing Bell\" on Monday.</p><p>“We are getting great opportunities” in the sell-off to buy the pure play names in the funds,added Wood, who focuses on disruptive technology stocks. Wood’s flagship fund Ark Innovation (ARKK) gained 4%.</p><p>Hedge fund manager David Tepper said on Monday the recent sharp rise in rates is likely over&nbsp;and it’s hard to be bearish on stocks right now. Tepper noted names like Amazon were starting to look attractive.</p><p>Over the weekend, the Senate passed a&nbsp;$1.9 trillion economic relief and stimulus bill, which is set to include another round of stimulus checks. President Joe Biden is expected to sign the bill into law by March 14.</p><p>The stimulus news prompted investors to rotate into reopening plays and cyclical stocks to bet on a sharp economic rebound. Banks, airlines, cruise lines and retailers led the gains on Monday.</p>","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Nasdaq jumps at open as tech stocks gain ground</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nNasdaq jumps at open as tech stocks gain ground\n</h2>\n\n<h4 class=\"meta\">\n\n\n<a class=\"head\" href=\"https://laohu8.com/wemedia/102\">\n\n\n<div class=\"h-thumb\" style=\"background-image:url(https://static.tigerbbs.com/8274c5b9d4c2852bfb1c4d6ce16c68ba);background-size:cover;\"></div>\n\n<div class=\"h-content\">\n<p class=\"h-name\">老虎资讯综合 </p>\n<p class=\"h-time\">2021-03-09 22:32</p>\n</div>\n\n</a>\n\n\n</h4>\n\n</header>\n<article>\n<p>U.S. stocks jumped on Tuesday after bond yields declined, causing investors to buy the dip in beaten-up technology shares.</p><p>The Dow Jones Industrial Average rose 152 points, or 0.5%. The S&amp;P 500 gained 1.2%. The tech-heavy Nasdaq Composite climbed 2.5%. Tesla shares popped 6.8%, while Apple, Amazon, Microsoft, Netflix and Alphabet all gained at least 2%.</p><p><img src=\"https://static.tigerbbs.com/bd0341e7bb4c802052f3c5aeb75c7435\" tg-width=\"1080\" tg-height=\"456\" referrerpolicy=\"no-referrer\"></p><p>Technology shares rebounded from sharp losses as bond yields stabilized. The&nbsp;10-year Treasury yield&nbsp;fell more than 6 basis points to 1.52%. It traded as high as 1.62% on Monday.</p><p>\"A lot of these tech stocks have become oversold on a short-term basis.&nbsp;Therefore, it's not a big surprise that they're seeing a nice bounce,\" said Matt Maley, chief market strategist at Miller Tabak. \"The question will be whether this bounce is a strong one...or a 'dead cat bounce' that doesn't last very long at all.\"</p><p>On Monday, the Dow rallied more than 300 points on investor optimism about the economic comeback from the pandemic. Yet tech shares didn't participate on Monday, with the Nasdaq Composite shedding 2% as a rapid rise in rates caused investors to rotate out of pricey tech shares.</p><p>The tech benchmark closed more than 10% below its Feb.12 closing high, falling into correction territory. High-growth names have been pressured lately as rising rates make their future profits less valuable today, compressing the stocks' lofty valuations.</p><p>\"Right now the market is broadening out and we think in an underlying sense the bull market is strengthening and that will play to our benefit over the longer term,\" said Cathie Wood of Ark Investment Management on CNBC's \"Closing Bell\" on Monday.</p><p>“We are getting great opportunities” in the sell-off to buy the pure play names in the funds,added Wood, who focuses on disruptive technology stocks. Wood’s flagship fund Ark Innovation (ARKK) gained 4%.</p><p>Hedge fund manager David Tepper said on Monday the recent sharp rise in rates is likely over&nbsp;and it’s hard to be bearish on stocks right now. Tepper noted names like Amazon were starting to look attractive.</p><p>Over the weekend, the Senate passed a&nbsp;$1.9 trillion economic relief and stimulus bill, which is set to include another round of stimulus checks. President Joe Biden is expected to sign the bill into law by March 14.</p><p>The stimulus news prompted investors to rotate into reopening plays and cyclical stocks to bet on a sharp economic rebound. Banks, airlines, cruise lines and retailers led the gains on Monday.</p>\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{".IXIC":"NASDAQ Composite",".SPX":"S&P 500 Index",".DJI":"道琼斯"},"is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"1179750666","content_text":"U.S. stocks jumped on Tuesday after bond yields declined, causing investors to buy the dip in beaten-up technology shares.The Dow Jones Industrial Average rose 152 points, or 0.5%. The S&P 500 gained 1.2%. The tech-heavy Nasdaq Composite climbed 2.5%. Tesla shares popped 6.8%, while Apple, Amazon, Microsoft, Netflix and Alphabet all gained at least 2%.Technology shares rebounded from sharp losses as bond yields stabilized. The 10-year Treasury yield fell more than 6 basis points to 1.52%. It traded as high as 1.62% on Monday.\"A lot of these tech stocks have become oversold on a short-term basis. Therefore, it's not a big surprise that they're seeing a nice bounce,\" said Matt Maley, chief market strategist at Miller Tabak. \"The question will be whether this bounce is a strong one...or a 'dead cat bounce' that doesn't last very long at all.\"On Monday, the Dow rallied more than 300 points on investor optimism about the economic comeback from the pandemic. Yet tech shares didn't participate on Monday, with the Nasdaq Composite shedding 2% as a rapid rise in rates caused investors to rotate out of pricey tech shares.The tech benchmark closed more than 10% below its Feb.12 closing high, falling into correction territory. High-growth names have been pressured lately as rising rates make their future profits less valuable today, compressing the stocks' lofty valuations.\"Right now the market is broadening out and we think in an underlying sense the bull market is strengthening and that will play to our benefit over the longer term,\" said Cathie Wood of Ark Investment Management on CNBC's \"Closing Bell\" on Monday.“We are getting great opportunities” in the sell-off to buy the pure play names in the funds,added Wood, who focuses on disruptive technology stocks. Wood’s flagship fund Ark Innovation (ARKK) gained 4%.Hedge fund manager David Tepper said on Monday the recent sharp rise in rates is likely over and it’s hard to be bearish on stocks right now. Tepper noted names like Amazon were starting to look attractive.Over the weekend, the Senate passed a $1.9 trillion economic relief and stimulus bill, which is set to include another round of stimulus checks. President Joe Biden is expected to sign the bill into law by March 14.The stimulus news prompted investors to rotate into reopening plays and cyclical stocks to bet on a sharp economic rebound. Banks, airlines, cruise lines and retailers led the gains on Monday.","news_type":1},"isVote":1,"tweetType":1,"viewCount":203,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":0,"langContent":"EN","totalScore":0}],"hots":[{"id":323319262,"gmtCreate":1615302964556,"gmtModify":1704780903055,"author":{"id":"3575667468626214","authorId":"3575667468626214","name":"yner","avatar":"https://static.laohu8.com/default-avatar.jpg","crmLevel":1,"crmLevelSwitch":0,"followedFlag":false,"idStr":"3575667468626214","authorIdStr":"3575667468626214"},"themes":[],"htmlText":"????","listText":"????","text":"????","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":2,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/323319262","repostId":"1179750666","repostType":4,"isVote":1,"tweetType":1,"viewCount":203,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":0,"langContent":"EN","totalScore":0},{"id":347649047,"gmtCreate":1618494758089,"gmtModify":1704711727859,"author":{"id":"3575667468626214","authorId":"3575667468626214","name":"yner","avatar":"https://static.laohu8.com/default-avatar.jpg","crmLevel":1,"crmLevelSwitch":0,"followedFlag":false,"idStr":"3575667468626214","authorIdStr":"3575667468626214"},"themes":[],"htmlText":"wow","listText":"wow","text":"wow","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":1,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/347649047","repostId":"1176099988","repostType":4,"isVote":1,"tweetType":1,"viewCount":416,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":0,"langContent":"EN","totalScore":0},{"id":347640015,"gmtCreate":1618494727837,"gmtModify":1704711726720,"author":{"id":"3575667468626214","authorId":"3575667468626214","name":"yner","avatar":"https://static.laohu8.com/default-avatar.jpg","crmLevel":1,"crmLevelSwitch":0,"followedFlag":false,"idStr":"3575667468626214","authorIdStr":"3575667468626214"},"themes":[],"htmlText":"??","listText":"??","text":"??","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":0,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/347640015","repostId":"1125635474","repostType":4,"repost":{"id":"1125635474","pubTimestamp":1618295945,"share":"https://ttm.financial/m/news/1125635474?lang=&edition=fundamental","pubTime":"2021-04-13 14:39","market":"us","language":"en","title":"AppLovin: Capitalizing On The Surging Growth Of Mobile Game Apps","url":"https://stock-news.laohu8.com/highlight/detail?id=1125635474","media":"seekingalpha","summary":"SummaryAppLovin announced its IPO price range of $75 to $85 per share. The company is selling 25 mil","content":"<p><b>Summary</b></p><ul><li>AppLovin announced its IPO price range of $75 to $85 per share. The company is selling 25 million shares.</li><li>At the high end of the IPO price range, the company is aiming to raise $2.1 billion, and it would be valued at $30.4 billion.</li><li>Our base case valuation of AppLovin is an EV of $35.1 billion, implied market cap of $35.7 billion, and target price per share of $99.8.</li><li>The company has been a key beneficiary of the surging growth of popular game apps.</li><li>Despite strong sales growth, its operating margins worsened in 2020 due to higher operating expenses.</li></ul><p><b>Investment Thesis</b></p><p>AppLovin<a href=\"https://laohu8.com/S/APP\">AppLovin Corporation</a>  is one of the key beneficiaries of the exploding demand for mobile apps, especially for mobile games. The company's sales growth has been surging in recent years as the company has benefited from both organic growth and has been aggressive in making numerous acquisitions in the past three years.</p><p>Most developers lack access to the marketing, monetization, and data analytics tools required to stand out among the more than 4.8 million mobile apps available on the Apple App Store(NASDAQ:AAPL)and Google Play Store(NASDAQ:GOOG)(NASDAQ:GOOGL). The company's products and services help many app developers to scale up their business and create a successful app that can be sustained long term. This is where the company's capabilities in app development, marketing, and analytics really stand out.</p><p>There are more than 1.3 million mobile gaming apps on the Apple App Store and Google Play Store.Mobile gamingaccounts for 39% of worldwide app downloads and for 72% of all app store consumer spend by value, according to Sensor Tower.</p><p>Although the company's operating margins declined in the past two years mainly due to higher operating expenses, we believe that the company's profit margins will turn around this year due to a combination of higher economies of scale and lower operating expenses as a percentage of revenues.</p><p><b>Comparable Companies Valuation Analysis</b></p><p>In the comparable companies valuation analysis, we used the following companies as comps to AppLovin:</p><ul><li>Unity Software (U)</li><li>Roblox Corp. (RBLX)</li><li>Activision Blizzard (ATVI)</li><li>Zynga (ZNGA)</li></ul><p>Our base case valuation of AppLovin is an EV of $35.1 billion, implied market cap of $35.7 billion, and implied target price per share of $99.8. This represents 17% upside from the high end of the IPO price range of $85. We have a POSITIVE view of the AppLovin IPO.</p><p>Our base case valuation of AppLovin is based on a 16x EV/S multiple (using 2021 sales estimate), which represents a 10% higher than the average EV/S multiple of the comps. It is also below the EV/S multiple of Unity Software and Roblox which trade at EV/S multiple of 26.8x and 19.2x, respectively.</p><p>The comps' average sales growth in 2020 and 2021 are similar to the sales growth rates of AppLovin in this period. Among the comps, Roblox has the highest sales growth and Activision has the lowest sales growth in 2020 and 2021. Overall, we have assumed higher sales growth for AppLovin versus its peers in 2021 and 2022 and this is one of main reasons why we have applied a 10% higher valuation multiple than the comps.</p><p>However, Roblox is trading at 19.2x EV/S in 2021 and we have applied a 16x EV/S multiple for AppLovin (17% lower valuation multiple than Roblox). We believe the market will attach a slightly higher valuation multiple for Roblox than AppLovin, mainly due to the former company's higher sales growth and operating margins in 2021, and its brand is more recognized worldwide.</p><p><img src=\"https://static.tigerbbs.com/b47032411f633c63c676152889baa874\" tg-width=\"553\" tg-height=\"350\" referrerpolicy=\"no-referrer\"><img src=\"https://static.tigerbbs.com/3ea8b356b98201f398b48bd4d57e507a\" tg-width=\"552\" tg-height=\"455\" referrerpolicy=\"no-referrer\"><img src=\"https://static.tigerbbs.com/8a2dfe8877740e842bb1e143c157e39c\" tg-width=\"551\" tg-height=\"370\" referrerpolicy=\"no-referrer\"><img src=\"https://static.tigerbbs.com/0aec05aa4790c780a95e2527c62896e9\" tg-width=\"554\" tg-height=\"548\" referrerpolicy=\"no-referrer\"><img src=\"https://static.tigerbbs.com/8ee98f1dd0f1c0becb865f331a283068\" tg-width=\"550\" tg-height=\"340\" referrerpolicy=\"no-referrer\"><img src=\"https://static.tigerbbs.com/96321e40b2bb290d968a20e0a3832de8\" tg-width=\"554\" tg-height=\"362\" referrerpolicy=\"no-referrer\"><img src=\"https://static.tigerbbs.com/327d495d893132d12a74cc91d93df055\" tg-width=\"553\" tg-height=\"367\" referrerpolicy=\"no-referrer\"><b>Income Statement Forecast</b></p><p>AppLovin generated sales of $1,451.1 million and an operating loss of $62.1 million in 2020. The company's sales have nearly tripled from 2018 to 2020. The company's operating margins declined from 50.1% in 2018 to 19.5% in 2019 and -4.3% in 2020. The major reasons for the lower operating margins are due to higher cost of sales, sales &amp; marketing, R&amp;D, and other operating expenses as a percentage of sales.</p><p>We estimate AppLovin to generate sales of $2.2 billion (up 51% YoY) and an operating profit of $65.2 million in 2021. From 2020 to 2025, we have assumed the company's sales to grow at a CAGR of 28.6%. We have also assumed the company's operating margin to turn positive to 3% in 2021 from -4.3% in 2020. We estimate its operating margins to improve further to 6.8% in 2022, 10.6% in 2023, and 17.8% in 2025. We estimate AppLovin to have sales of $5.1 billion and an operating profit of $0.9 billion in 2025.</p><p><img src=\"https://static.tigerbbs.com/4e58f808f42f4c3a1e238b587f637063\" tg-width=\"547\" tg-height=\"669\" referrerpolicy=\"no-referrer\"><img src=\"https://static.tigerbbs.com/1026d63d84ac8f26d8391d7e91317b9e\" tg-width=\"547\" tg-height=\"449\" referrerpolicy=\"no-referrer\"><img src=\"https://static.tigerbbs.com/b9bf6e155cbc281373a8fac78fd3e08b\" tg-width=\"547\" tg-height=\"488\" referrerpolicy=\"no-referrer\"><b>Company Background</b></p><p>Thecompanyoriginally started its business helping customers to improve the smartphone customer experiences for all the users. In recent years, the company has become a much bigger player in the mobile gaming segment and it also helps developers to grow their users and improve the monetization of their apps.</p><p>According to IDC, the company's totalmarket opportunityis estimated to be $189 billion in 2020, growing to $283 billion in 2024, representing a CAGR of 10.6% in this period. This total market size of $184 billion was derived by adding the worldwide total in-app advertising revenue of $101 billion (including gaming and non-gaming in-app display, video, and other advertising, but excluding in-app search advertising) and worldwide direct game spending of $88 billion for 2020.</p><p>AppLovin has invested about $1 billion in 15 acquisitions and partnerships since 2018. It owns more than 200 free-to-play mobile games from 12 studios.AppLovinlaunched a gaming business unit called Lion Studios in July 2018. It also acquired a company called Max in September 2018. Max provides in-app bidding service, which is a type of advertising where mobile publishers can sell their ad inventory in an auction method). AppLovin also owns and operates gaming studios Machine Zone, Belka Games, PeopleFun and Firecraft Studios.</p><p>In February 2021, AppLovin signed an agreement to purchase Adjust for $1 billion (including $598 million in cash and $352 million in convertible securities, and an assumption of up to $40 million in debt). Adjust is a leading mobile app analytics&amp; marketing products company in Germany. Adjust provides tools to prevent mobile advertising fraud and better measure the user base. This acquisition is expected to close in 1H 2021.</p><p>In the IPO prospectus, the company mentioned that it plans to use $75 million of its Class A common shares for charitable purposes. If the company raises $1 billion in the IPO, this would represent nearly 7.5% of total amount. This is a bit unusual to have this large number of shares allocated for charitable purposes. We applaud this move by the CEO and its senior management. Adam Foroughi, the co-founder and CEO of AppLovin, previously co-founded two advertising technology companies, Lifestreet Media Inc. and Social Hour Inc.</p><p><b>AppLovin (Key Metrics)</b></p><p>The table provides the company's key metrics. There has been a strong increase in the monthly active payers which jumped from 0.3 million in 2018 to 1.0 million in 2019 and 1.5 million in 2020. However, the enterprise clients declined from 192 in 2018 to 172 in 2020. The company defines its enterprise clients as third-party business clients from which it has collected more than $125,000 of revenue in the trailing 12 months. Average revenue per monthly active payer increased from $11 in 2018 to $32 in 2019 and $41 in 2020.</p><p>The company's main businesses comprise of its platform and apps. Its platform business mainly includes AppLovin Core Technologies and AppLovin Software. Its apps consist of over 200 free-to-play mobile games in five genres, run by 12 studios including those owned by the company and also those it partners with. The five major game genres offering by the company include casual, hypercasual, match-three, midcore, and card/casino. No single game of the company contributed more than 16% of its total revenue in 2020.</p><p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/0638b1ba5528bc65ee975156f3bcfd46\" tg-width=\"605\" tg-height=\"225\" referrerpolicy=\"no-referrer\"><span>Source: Company data</span></p><p>The company collects revenue from two sources including business clients and consumers. In 2020, business clients accounted for 49% of total revenue and consumers represented 51% of total revenue.</p><p><b>Business Clients:</b></p><ul><li>The company has a wide range of business clients including Facebook(NASDAQ:FB), Google, and a number of much smaller companies. It had 1,400 business clients at the end of 2020. Nearly 99% of the company's business revenue came from its 172 enterprise clients as of December 31, 2020. The company also had a solid customer retention rate of 118% in 2020 for its enterprise clients.</li><li>AppLovin Software is a comprehensive suite of tools for developers to get their mobile apps discovered and downloaded by the right users, optimize return on marketing spend, and maximize monetization of engagement. AppLovin Software reaches an audience of over 410 million users per day. The company's software solutions provide tools for mobile app developers to expand their businesses by optimizing and automating the marketing and monetization of their apps. Since inception, the company's platform has driven more than 6 billion mobile app installs.</li><li>The company's main software includes AppDiscovery and MAX. Business clients use AppDiscovery to automate, optimize, and manage their app user acquisition investments. They set marketing and user growth goals, and AppDiscovery optimizes their ad spend in an effort to achieve their return on advertising spend targets and other marketing objectives. AppDiscovery comprises the vast majority of revenue from its software.</li><li>Revenue is generated from the advertisers, typically on a performance-based, cost-per-install basis, and shared with the company's advertising publishers, typically on a cost per impression model. Business clients use MAX to optimize purchases of app ad inventory.</li><li>The Compass Analytics tool within MAX provides insights to manage against key performance indicators, understand the long-term value of users, and help manage profitability. Revenue from MAX is generated based on a percentage of client spend. Business clients that purchase advertising inventory from the company's Apps are able to target highly relevant users from its diverse and global portfolio of over 200 mobile games.</li></ul><p><b>Consumers:</b></p><ul><li>The company has also developed and invested in AppLovin Apps, which consist of a globally diversified portfolio of over 200 free-to-play mobile games. These Apps are accessed by nearly 32 million users every day. Consumer revenue is generated when the user of its apps makes an in-app purchase (IAP).</li><li>The company's apps are mostly free-to-play mobile games and generate consumer revenue through in-app purchase of virtual items which are used to enhance gameplay and improve the probabilities of the mobile game progression opportunities.</li><li>During the three months ended December 31, 2020, the company had an average of 2.1 million monthly active payers (MAPs) across its portfolio of apps. Over that period, the company had an average revenue per monthly active payer of $41.</li></ul><p><img src=\"https://static.tigerbbs.com/17a469e7db2359f56bb1fec2388f2826\" tg-width=\"555\" tg-height=\"454\" referrerpolicy=\"no-referrer\"><b>Major Competitors</b></p><p>In the mobile games and other mobile game app related businesses, the major competitors include Unity Software, Activision Blizzard, Tencent Holdings(OTCPK:TCEHY), and Zynga. In the advertising platform business, the company's major competitors include Facebook, Alphabet, and Amazon (AMZN). Many of these companies are also AppLovin's partners and customers. In addition to these mega companies, the company faces competition from thousands of smaller competitors worldwide.</p><p>Balance Sheet and Cash Flow Analysis</p><p>The company has a leveraged balance sheet. Net debt increased from $0.8 billion at the end of 2019 to $1.3 billion at the end of 2020. Net debt to adjusted EBITDA ratio also rose from 260% at the end of 2019 to 315% at the end of 2020. After KKR invested in the company in 2018, it appears that AppLovin was advised to add more leverage and expand the business more aggressively through numerous acquisitions. Through this IPO, the company's balance sheet will become much stronger.</p><p>The company generated positive cash flow from operations and free cash flow in the past two years. Its cash flow from operations and free cash flow averaged $211 million and $207 million, respectively, in 2019 and 2020.</p><p><b>Conclusion</b></p><p>AppLovin is one of the key beneficiaries of the surging growth of game-related mobile apps. Our base case valuation of AppLovin is EV of $35.1 billion, implied market cap of $35.7 billion, and target price per share of $99.8, which is about 17% higher than the high end of the IPO price range. In recent months, some of the major game-related IPOs including Roblox and Unity Software have done really well, although their share prices have come down from their recent highs. AppLovin will likely be compared against these stocks.</p><p>Despite AppLovin's decline in operating margins in 2020 due to higher operating expenses, it is more likely that investors will focus on the company's ability to continue to scale up the business and generate higher sales growth. There remains some uncertainty in terms of how quickly the company is willing to focus on the probability at the expense of lower sales growth. In addition, there are some concerns about the recent weakening sentiment on the tech-related IPOs.</p>","source":"seekingalpha","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>AppLovin: Capitalizing On The Surging Growth Of Mobile Game Apps</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nAppLovin: Capitalizing On The Surging Growth Of Mobile Game Apps\n</h2>\n\n<h4 class=\"meta\">\n\n\n2021-04-13 14:39 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://seekingalpha.com/article/4418129-applovin-capitalizing-growth-mobile-game-apps><strong>seekingalpha</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>SummaryAppLovin announced its IPO price range of $75 to $85 per share. The company is selling 25 million shares.At the high end of the IPO price range, the company is aiming to raise $2.1 billion, and...</p>\n\n<a href=\"https://seekingalpha.com/article/4418129-applovin-capitalizing-growth-mobile-game-apps\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"APP":"AppLovin Corporation"},"source_url":"https://seekingalpha.com/article/4418129-applovin-capitalizing-growth-mobile-game-apps","is_english":true,"share_image_url":"https://static.laohu8.com/5a36db9d73b4222bc376d24ccc48c8a4","article_id":"1125635474","content_text":"SummaryAppLovin announced its IPO price range of $75 to $85 per share. The company is selling 25 million shares.At the high end of the IPO price range, the company is aiming to raise $2.1 billion, and it would be valued at $30.4 billion.Our base case valuation of AppLovin is an EV of $35.1 billion, implied market cap of $35.7 billion, and target price per share of $99.8.The company has been a key beneficiary of the surging growth of popular game apps.Despite strong sales growth, its operating margins worsened in 2020 due to higher operating expenses.Investment ThesisAppLovinAppLovin Corporation  is one of the key beneficiaries of the exploding demand for mobile apps, especially for mobile games. The company's sales growth has been surging in recent years as the company has benefited from both organic growth and has been aggressive in making numerous acquisitions in the past three years.Most developers lack access to the marketing, monetization, and data analytics tools required to stand out among the more than 4.8 million mobile apps available on the Apple App Store(NASDAQ:AAPL)and Google Play Store(NASDAQ:GOOG)(NASDAQ:GOOGL). The company's products and services help many app developers to scale up their business and create a successful app that can be sustained long term. This is where the company's capabilities in app development, marketing, and analytics really stand out.There are more than 1.3 million mobile gaming apps on the Apple App Store and Google Play Store.Mobile gamingaccounts for 39% of worldwide app downloads and for 72% of all app store consumer spend by value, according to Sensor Tower.Although the company's operating margins declined in the past two years mainly due to higher operating expenses, we believe that the company's profit margins will turn around this year due to a combination of higher economies of scale and lower operating expenses as a percentage of revenues.Comparable Companies Valuation AnalysisIn the comparable companies valuation analysis, we used the following companies as comps to AppLovin:Unity Software (U)Roblox Corp. (RBLX)Activision Blizzard (ATVI)Zynga (ZNGA)Our base case valuation of AppLovin is an EV of $35.1 billion, implied market cap of $35.7 billion, and implied target price per share of $99.8. This represents 17% upside from the high end of the IPO price range of $85. We have a POSITIVE view of the AppLovin IPO.Our base case valuation of AppLovin is based on a 16x EV/S multiple (using 2021 sales estimate), which represents a 10% higher than the average EV/S multiple of the comps. It is also below the EV/S multiple of Unity Software and Roblox which trade at EV/S multiple of 26.8x and 19.2x, respectively.The comps' average sales growth in 2020 and 2021 are similar to the sales growth rates of AppLovin in this period. Among the comps, Roblox has the highest sales growth and Activision has the lowest sales growth in 2020 and 2021. Overall, we have assumed higher sales growth for AppLovin versus its peers in 2021 and 2022 and this is one of main reasons why we have applied a 10% higher valuation multiple than the comps.However, Roblox is trading at 19.2x EV/S in 2021 and we have applied a 16x EV/S multiple for AppLovin (17% lower valuation multiple than Roblox). We believe the market will attach a slightly higher valuation multiple for Roblox than AppLovin, mainly due to the former company's higher sales growth and operating margins in 2021, and its brand is more recognized worldwide.Income Statement ForecastAppLovin generated sales of $1,451.1 million and an operating loss of $62.1 million in 2020. The company's sales have nearly tripled from 2018 to 2020. The company's operating margins declined from 50.1% in 2018 to 19.5% in 2019 and -4.3% in 2020. The major reasons for the lower operating margins are due to higher cost of sales, sales & marketing, R&D, and other operating expenses as a percentage of sales.We estimate AppLovin to generate sales of $2.2 billion (up 51% YoY) and an operating profit of $65.2 million in 2021. From 2020 to 2025, we have assumed the company's sales to grow at a CAGR of 28.6%. We have also assumed the company's operating margin to turn positive to 3% in 2021 from -4.3% in 2020. We estimate its operating margins to improve further to 6.8% in 2022, 10.6% in 2023, and 17.8% in 2025. We estimate AppLovin to have sales of $5.1 billion and an operating profit of $0.9 billion in 2025.Company BackgroundThecompanyoriginally started its business helping customers to improve the smartphone customer experiences for all the users. In recent years, the company has become a much bigger player in the mobile gaming segment and it also helps developers to grow their users and improve the monetization of their apps.According to IDC, the company's totalmarket opportunityis estimated to be $189 billion in 2020, growing to $283 billion in 2024, representing a CAGR of 10.6% in this period. This total market size of $184 billion was derived by adding the worldwide total in-app advertising revenue of $101 billion (including gaming and non-gaming in-app display, video, and other advertising, but excluding in-app search advertising) and worldwide direct game spending of $88 billion for 2020.AppLovin has invested about $1 billion in 15 acquisitions and partnerships since 2018. It owns more than 200 free-to-play mobile games from 12 studios.AppLovinlaunched a gaming business unit called Lion Studios in July 2018. It also acquired a company called Max in September 2018. Max provides in-app bidding service, which is a type of advertising where mobile publishers can sell their ad inventory in an auction method). AppLovin also owns and operates gaming studios Machine Zone, Belka Games, PeopleFun and Firecraft Studios.In February 2021, AppLovin signed an agreement to purchase Adjust for $1 billion (including $598 million in cash and $352 million in convertible securities, and an assumption of up to $40 million in debt). Adjust is a leading mobile app analytics& marketing products company in Germany. Adjust provides tools to prevent mobile advertising fraud and better measure the user base. This acquisition is expected to close in 1H 2021.In the IPO prospectus, the company mentioned that it plans to use $75 million of its Class A common shares for charitable purposes. If the company raises $1 billion in the IPO, this would represent nearly 7.5% of total amount. This is a bit unusual to have this large number of shares allocated for charitable purposes. We applaud this move by the CEO and its senior management. Adam Foroughi, the co-founder and CEO of AppLovin, previously co-founded two advertising technology companies, Lifestreet Media Inc. and Social Hour Inc.AppLovin (Key Metrics)The table provides the company's key metrics. There has been a strong increase in the monthly active payers which jumped from 0.3 million in 2018 to 1.0 million in 2019 and 1.5 million in 2020. However, the enterprise clients declined from 192 in 2018 to 172 in 2020. The company defines its enterprise clients as third-party business clients from which it has collected more than $125,000 of revenue in the trailing 12 months. Average revenue per monthly active payer increased from $11 in 2018 to $32 in 2019 and $41 in 2020.The company's main businesses comprise of its platform and apps. Its platform business mainly includes AppLovin Core Technologies and AppLovin Software. Its apps consist of over 200 free-to-play mobile games in five genres, run by 12 studios including those owned by the company and also those it partners with. The five major game genres offering by the company include casual, hypercasual, match-three, midcore, and card/casino. No single game of the company contributed more than 16% of its total revenue in 2020.Source: Company dataThe company collects revenue from two sources including business clients and consumers. In 2020, business clients accounted for 49% of total revenue and consumers represented 51% of total revenue.Business Clients:The company has a wide range of business clients including Facebook(NASDAQ:FB), Google, and a number of much smaller companies. It had 1,400 business clients at the end of 2020. Nearly 99% of the company's business revenue came from its 172 enterprise clients as of December 31, 2020. The company also had a solid customer retention rate of 118% in 2020 for its enterprise clients.AppLovin Software is a comprehensive suite of tools for developers to get their mobile apps discovered and downloaded by the right users, optimize return on marketing spend, and maximize monetization of engagement. AppLovin Software reaches an audience of over 410 million users per day. The company's software solutions provide tools for mobile app developers to expand their businesses by optimizing and automating the marketing and monetization of their apps. Since inception, the company's platform has driven more than 6 billion mobile app installs.The company's main software includes AppDiscovery and MAX. Business clients use AppDiscovery to automate, optimize, and manage their app user acquisition investments. They set marketing and user growth goals, and AppDiscovery optimizes their ad spend in an effort to achieve their return on advertising spend targets and other marketing objectives. AppDiscovery comprises the vast majority of revenue from its software.Revenue is generated from the advertisers, typically on a performance-based, cost-per-install basis, and shared with the company's advertising publishers, typically on a cost per impression model. Business clients use MAX to optimize purchases of app ad inventory.The Compass Analytics tool within MAX provides insights to manage against key performance indicators, understand the long-term value of users, and help manage profitability. Revenue from MAX is generated based on a percentage of client spend. Business clients that purchase advertising inventory from the company's Apps are able to target highly relevant users from its diverse and global portfolio of over 200 mobile games.Consumers:The company has also developed and invested in AppLovin Apps, which consist of a globally diversified portfolio of over 200 free-to-play mobile games. These Apps are accessed by nearly 32 million users every day. Consumer revenue is generated when the user of its apps makes an in-app purchase (IAP).The company's apps are mostly free-to-play mobile games and generate consumer revenue through in-app purchase of virtual items which are used to enhance gameplay and improve the probabilities of the mobile game progression opportunities.During the three months ended December 31, 2020, the company had an average of 2.1 million monthly active payers (MAPs) across its portfolio of apps. Over that period, the company had an average revenue per monthly active payer of $41.Major CompetitorsIn the mobile games and other mobile game app related businesses, the major competitors include Unity Software, Activision Blizzard, Tencent Holdings(OTCPK:TCEHY), and Zynga. In the advertising platform business, the company's major competitors include Facebook, Alphabet, and Amazon (AMZN). Many of these companies are also AppLovin's partners and customers. In addition to these mega companies, the company faces competition from thousands of smaller competitors worldwide.Balance Sheet and Cash Flow AnalysisThe company has a leveraged balance sheet. Net debt increased from $0.8 billion at the end of 2019 to $1.3 billion at the end of 2020. Net debt to adjusted EBITDA ratio also rose from 260% at the end of 2019 to 315% at the end of 2020. After KKR invested in the company in 2018, it appears that AppLovin was advised to add more leverage and expand the business more aggressively through numerous acquisitions. Through this IPO, the company's balance sheet will become much stronger.The company generated positive cash flow from operations and free cash flow in the past two years. Its cash flow from operations and free cash flow averaged $211 million and $207 million, respectively, in 2019 and 2020.ConclusionAppLovin is one of the key beneficiaries of the surging growth of game-related mobile apps. Our base case valuation of AppLovin is EV of $35.1 billion, implied market cap of $35.7 billion, and target price per share of $99.8, which is about 17% higher than the high end of the IPO price range. In recent months, some of the major game-related IPOs including Roblox and Unity Software have done really well, although their share prices have come down from their recent highs. AppLovin will likely be compared against these stocks.Despite AppLovin's decline in operating margins in 2020 due to higher operating expenses, it is more likely that investors will focus on the company's ability to continue to scale up the business and generate higher sales growth. There remains some uncertainty in terms of how quickly the company is willing to focus on the probability at the expense of lower sales growth. In addition, there are some concerns about the recent weakening sentiment on the tech-related IPOs.","news_type":1},"isVote":1,"tweetType":1,"viewCount":332,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":0,"langContent":"EN","totalScore":0},{"id":323311087,"gmtCreate":1615303015749,"gmtModify":1704780904847,"author":{"id":"3575667468626214","authorId":"3575667468626214","name":"yner","avatar":"https://static.laohu8.com/default-avatar.jpg","crmLevel":1,"crmLevelSwitch":0,"followedFlag":false,"idStr":"3575667468626214","authorIdStr":"3575667468626214"},"themes":[],"htmlText":"Hold","listText":"Hold","text":"Hold","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":0,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/323311087","repostId":"1101563548","repostType":4,"repost":{"id":"1101563548","pubTimestamp":1615301161,"share":"https://ttm.financial/m/news/1101563548?lang=&edition=fundamental","pubTime":"2021-03-09 22:46","market":"us","language":"en","title":"These tech stocks have lost more than 20% of their value so far this year","url":"https://stock-news.laohu8.com/highlight/detail?id=1101563548","media":"cnbc","summary":"KEY POINTS\n\nSome of the once high-flying tech stocks have reversed course and shaved high percentage","content":"<div>\n<p>KEY POINTS\n\nSome of the once high-flying tech stocks have reversed course and shaved high percentages off their stock prices.\nTech shares hinted toward recovery in the premarket Tuesday as bond yields...</p>\n\n<a href=\"https://www.cnbc.com/2021/03/09/these-tech-stocks-have-lost-more-than-20percent-of-their-value-this-year.html\">Web Link</a>\n\n</div>\n","source":"cnbc_highlight","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; 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overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nThese tech stocks have lost more than 20% of their value so far this year\n</h2>\n\n<h4 class=\"meta\">\n\n\n2021-03-09 22:46 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://www.cnbc.com/2021/03/09/these-tech-stocks-have-lost-more-than-20percent-of-their-value-this-year.html><strong>cnbc</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>KEY POINTS\n\nSome of the once high-flying tech stocks have reversed course and shaved high percentages off their stock prices.\nTech shares hinted toward recovery in the premarket Tuesday as bond yields...</p>\n\n<a href=\"https://www.cnbc.com/2021/03/09/these-tech-stocks-have-lost-more-than-20percent-of-their-value-this-year.html\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"AI":"C3.ai, Inc.","U":"Unity Software Inc.","XM":"Qualtrics International","SPLK":"Splunk Inc","LMND":"Lemonade, Inc.","SNOW":"Snowflake"},"source_url":"https://www.cnbc.com/2021/03/09/these-tech-stocks-have-lost-more-than-20percent-of-their-value-this-year.html","is_english":true,"share_image_url":"https://static.laohu8.com/72bb72e1b84c09fca865c6dcb1bbcd16","article_id":"1101563548","content_text":"KEY POINTS\n\nSome of the once high-flying tech stocks have reversed course and shaved high percentages off their stock prices.\nTech shares hinted toward recovery in the premarket Tuesday as bond yields stabilized, leading investors to buying into the dip.\nHowever, the early rise in share price didn’t completely recoup some of the losses.\n\nSome of the once high-flying tech stocks have reversed course and shaved high percentages off their stock prices, after rising bond yields raised concerns about valuations and higher interest rates.\nInvestors saw a rapid rise in bond yields, which move inversely to prices, over the past few weeks. As rates jumped, tech shares (especially ones with lofty valuations and little to no profit) traded lower.\nThat came as Wall Street also expected strong economic recovery as some pandemic restrictions are lifted and vaccines continue to roll out, so they poured into more cyclical stocks. There was also the fear that pandemic recovery could lead to concerning levels of inflation, which may hit tech stocks especially hard as they’ve been relying on easy borrowing for superior growth.\nTech shares hinted toward recovery in the premarket Tuesday as bond yields stabilized, leading investors to buy into the dip. However, the early rise in share prices Tuesday didn’t completely recoup some of the losses.\nCNBC compiled a list of some of the notable tech companies that have shed more than 20% this year as of Tuesday morning:\n\nC3.ai was among the biggest shedders, down more than 39% for the year. The company’s stock was up 2.5% in the premarket. The enterprise artificial intelligence company recently released its first earnings report as a public company, disappointing investors.\n\n\nVideo game software developer Unity has shed nearly 37% for the year. The company’s stock was up about 4.4% in the premarket. Shares began to fall in February after the company provided a forecast that failed to meet analysts’ most optimistic estimates.\n\n\nStichFix shed more than 29% this year, with steep losses following the company’s latest earnings report that was released Monday afternoon. StichFix’s revenue came in short of Wall Street forecasts. The company also cut guidance for the fiscal year that begins in July due to lengthened cycle times. Shares were down more than 22% in the premarket.\n\n\nLemonade was also trading down 26%. Shares were up about 4.2% in the premarket. The insurance company issued conservative guidance for this year as part of its fourth quarter 2020 earnings on Monday.\n\n\nCloud software vendor Qualtrics was down nearly 23% from its first day of trading on Jan 28. Shares were up 2.6% in the premarket.\n\n\nSnowflake has lost more than 21%, as investors pull back from what some called bubble-like valuations. The stock was up 3.7% in the premarket.\n\n\nSoftware company Splunk has shed about 21% this year. Shares were up 2.6% in the premarket.","news_type":1},"isVote":1,"tweetType":1,"viewCount":235,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":0,"langContent":"EN","totalScore":0}],"lives":[]}