Aug. 12 at 7:13 AM
$APP $100 Billion market cap is pure comedy!
Analyst comments: "We believe the risks to APP’s articulated 30% Y/Y LT revenue growth trajectory (including “Consumer”) have increased. Post-Q2 print, engineer-directed improvements to Gaming models appear to be the primary driver of Q/Q growth, while it has become unclear whether self-learning growth of 3-5% Q/Q still applies.
The future trajectory of self-learning was not explicitly addressed on the recent print, Q3 guidance, or thereafter, and we think it plausible that given AppLovin’s high relative market share (we think 2x its next largest competitor), 3% Q/Q growth LT, based on self-learning alone, may no longer apply.
Leading up to results, most of the market had assumed self-learning growth was a given because it is accomplished by continuously retraining predictive models on live impression data—something that continued in Q2 independent of lighter-than-normal engineer-directed improvements."
