Hi Anil, why do you think market is undervaluing this company, is there something that we are missing, is it because its not a SAAS business? When I find an undervalued business many times there are issues that market prices in. Sometime market is wrong, which is good time to buy companies but its important to ensure we are not missing anything. I will also look into this company in more details. Good pick. --Pranshu
The most plausible reason is due Apple store privacy features allowing users to opt out of tracking users activity. Hence all companies that rely on advertising as a revenue declined. But after recent quarter report one reasonably assume that it didn’t have much effect on applovin’s revenue growth.
Hi Anil, thanks for sharing your picks and along with a brief summary of your thoughts. Other than flywheel effect do you see any moat? What are some of the main competitors and in the absence of any intellectual property, I was wondering other companies/competitors can develop this tool relatively easily (I am not a technologist, so I could be wrong). I would appreciate if you could add more color and deep dive to the moat and uniqueness of this company compared to others which protects its from competition. Thanks
This is emerging company. Moat is being built. Competitors are Roblox, U and other mobile gaming companies. Risk is high at this stage for any company.
Hi Anil, why do you think market is undervaluing this company, is there something that we are missing, is it because its not a SAAS business? When I find an undervalued business many times there are issues that market prices in. Sometime market is wrong, which is good time to buy companies but its important to ensure we are not missing anything. I will also look into this company in more details. Good pick. --Pranshu
The most plausible reason is due Apple store privacy features allowing users to opt out of tracking users activity. Hence all companies that rely on advertising as a revenue declined. But after recent quarter report one reasonably assume that it didn’t have much effect on applovin’s revenue growth.
Another interesting company is APPS (Digital Turbine) , its in same mobile app space, growing at +100% and trade at less than 4X sales...
Hi Anil, thanks for sharing your picks and along with a brief summary of your thoughts. Other than flywheel effect do you see any moat? What are some of the main competitors and in the absence of any intellectual property, I was wondering other companies/competitors can develop this tool relatively easily (I am not a technologist, so I could be wrong). I would appreciate if you could add more color and deep dive to the moat and uniqueness of this company compared to others which protects its from competition. Thanks
This is emerging company. Moat is being built. Competitors are Roblox, U and other mobile gaming companies. Risk is high at this stage for any company.