This Stock is About to SKYROCKET.. (It FINALLY Bottomed)

Apploving is a stock that has had a fall from grace to say the least. The stock back in June was over $600 per share. And I'll be honest, back in June, I was not a fan of the stock. Why? Not because I didn't like the business or like what they're doing. I just didn't think the riskreward made a lot of sense at the time when there were a lot of other stocks that were 50% lower than where they are today. ELF, Zeta Global, Rubric, you know, these stocks have doubled in that in the same time frame. But now today with the stock at $284 per share, actually up 6% on the day today, I think it's one of the best buying opportunities in the markets right now with one of the cheapest valuations that we have now. Apploven's CTO on X today gave us some mic drop like commentary. That's the kind of reaction we're hearing from uh people on X. I want to share that with you in today's video. But the other reason why the stock is up today is because City Bank came out with a new analyst note from Jason Basnet. He is one of the best analyst in the stock market and he says quote applovin will have no problems beating on earnings and I said quote but I paraphrase there a little bit. We'll take a look at exactly what he said in the recent uh targets he put out for the company. So, one of the biggest pieces of news today was Jason Basinet of City Bank, the managing director, reiterated his $600 price target on the stock, and said, quote, "We believe Apploven is well positioned to meet or exceed its Q3 2026 guidance." And this is really something, right? Ever since uh Apploven's last earnings, you know, the stock went from like $450 per share down to $266 as of last Friday. Everyone has turned bearish on this company. And we've talked about why on this channel. I think we all know what's happening here, right? Unity is stealing some of Apploven's bid ask data, some of their metrics that make Apploven have 84% gross margins. like they Apple 11 is one of the most profitable companies in the history of business. No surprise there. Well, people say now that Unity is getting that information and a court ruled that Unity does not need to stop collecting that information that all of the sudden the story for Apploven is a lost cause. And I think at the simplest basics of it, even if you think Apploven probably shouldn't be $600 a share, I don't think it should be $280 a share. I think people are too bearish. I think the bar is now too low and there is some immediate upside in the stock. Now the management like the CEO of Apploven which holds billions of dollars worth of stock management and insiders own about 25% of all the shares outstanding. Apploven is about a hundred billion dollar market cap. So they are very exposed and positioned to app just like shareholders which is always a great thing to see that your interests are aligned with management's financial interest as well. It's one of the best indicators of how executives feel about a company and and their their future outlooks. While the CEO of Apploven has said in the past couple of quarters that he thinks Apploven is one day a trillion business, it's a hundred billion dollar business today. He believes the company will put up revenue growth of 30% per year for the next decade compounded. Well, according to Arya here on X, he says uh the market is just pricing in about 5.8% revenue growth per year for the next decade to justify where the current valuation is. Again, Apploven has a PEG ratio of less than 0.5. It has a um forward PE multiple of about 15. It's one of the cheapest, highest growing companies you can find. Hence the PEG ratio less than 0.5. But before we get any further here, let me share with you what the CTO of Apploven said today. He says, "Zack, I see why you connect these dots, but I have a different view. Competition for impressions is real. What I question is the implication that Unity is doing well leads to that must be bad for apploving." Take Google and Meta. They've been fierce competitors in digital advertising for over a decade. If you look only at their competition for ad advertiser budgets, it's easy to assume that one's gain must be the other's loss. But together, they helped build an entire economy supported by online advertising. A business that finds its first customers through Google can grow into major advertisers on Meta and vice versa. Each business, each benefit from businesses, the other helped create and grow. They compete within the economy while also making it bigger for each other. I think the same possibility exists here. When advertising works better, advertisers can grow their business. When developers earn more, they can invest in better games and apps. That creates more opportunity for everyone serving them. It doesn't mean every company wins or that competition is painless. But there is more to the story than dividing up a fixed pie. I'm deeply committed to outperforming our competitors. I also respect what they're building and I don't wish them to fail. I want us to succeed by doing better. There's room to be ambitious for our own business and generous towards someone else's success. Boom. And a lot of people are calling that a mic drop moment. Basically saying, "Look, dude, you're looking at the wrong metrics. You're wrong here." And yeah, like we don't know exactly what is happening between this unity apploving situation. We have the the details that we know about, but we don't have apploving earnings for about another month here. So, right now, everyone's jumped to oh my gosh, the worst case scenario. So you can even see, you know, Apploven um has has fallen and Unity has risen on the back of Apploven's problems, right? Unity has done very well in uh even just the past week or so. Stock went from about $38 per share to $46 per share. Unity's done well and Unity probably will do well, but does that mean Apploven is going to suck? I don't think so. The the biggest bullcase for me though actually has nothing to do with mobile gaming advertising, right? It has to do with the commercial um online advertising, their web portal that they just launched in the last two quarters. And that's actually the exciting part right now. The Axon engine, which app loving, that's how they advertise. Their pixel installs were up 7.39% week-over- week from 14,644 to 15,726. So, if you look at this pixel install, you can see I it's going vertical, you know, it's literally going vertical. Now, what are pixels? Well, it's the thing that companies uh have to download so Axon can get the company data, right? You can't advertise to consumers without having that company's data, right? And that goes into feeding the Axon model, which goes into advertising for companies. So, pixel installs, yes, some like a Nike pixel install is going to be far more valuable than my Shopify store if I had one, right? Or your Shopify store that maybe you sell one one item per year. That's that's the case that Wells Fargo recently made that a lot of these pixel downloads are simply like inactive Shopify stores. And some of that's probably true, but City Bank came out and said they analyzed the pixel installs after the Wells Fargo note and said that only about 25% of those pixel installs were inactive Shopify stores and the rest of them were normal businesses. So if you go with what like a City Bank is saying and some of these other more bullish firms, they're pushing back on the bearish argument from the pixel install. So there's really again two different things happening here. One of which is Apploven's pivot into online advertising away from just mobile gaming advertising. Some companies, some like Wall Street firms and banks say, "Yep, it's going great." Some of them say it's a false start. So that's number one. But then on the legacy side of their business, the other argument is that Unity is using Apploven's data to train their models and they're going to squeeze Apploven's profit margins. So there's these two stories right now that just, you know, everyone's getting all beared up about. And while some of it might be true, does it justify the sheer amount of carnage you have seen in the stock recently? I don't think so. And this specific analyst, if I did not mention this already, I know I did at the start of today's video, he is in the top 4% of uh analyst on Wall Street. the guy that put out the $600 price target on AppLovven says that they they should easily beat on earnings so on and so forth. We can also see that big money investors, hedge funds, institutions, they have been buying the dip in app loving ever since the dip started here in the last 3 months or so and institutional ownership is now at a new all-time high. So again, when it comes to AppLoving, yeah, we had some good news today. There's further litigation um coming over the next couple of months. We'll see what the courts ultimately rule on Apploven suing Unity and whether or not Unity will continue to collect the data because with the algorithms with the AI models that the mobile advertisers use, Unity, Liftoff Mobile Cortex Apploven, Axon engine, they're all using data from their companies, from the pixels, right, to train the algorithm in real time. So pretty much every quarter you have to come out and re-update those algorithms to keep your return on um advertising, you know, spend competitive, right? You can't stop doing that. So if the courts do rule in Apploven's favor, which I think they ultimately will, it could take a little bit of time, that is a major rerating catalyst for Apploven. But either way, I think the stock is probably a hundred or so dollars um lower than where it should be right now. Even if some of the concerns are valid out there, even assuming some of the concerns are valid. If you assume that none of these concerns are really, you know, materially going to impact Apploven at all, the stock's like $2 $300 undervalued right now. I'm being a little bit more conservative. I'm saying that maybe some of it has some merit, but it's not uh as existential of a crisis as the markets are currently viewing it as. So, those are my thoughts. You know, let me know your thoughts on Apploven right now. The bounce that we've seen today, that big level is around $300 per share. The stock sitting at $282 per share right now. You want to get back above 300. 300 was a pretty good line in the sand. It's probably going to serve as resistance now. If you get it back above that, then it should turn into a pretty solid level of support yet again. And then once you get above like 330, 340, that's where things get exciting again to take a run into the 400s or so. Now, if you guys want to come trade and invest alongside of us, that link is down below in the description of today's episode. We are outperforming all of Wall Street this year. We are up 113% year to date. How and why? Well, I like to take advantage of these opportunities when we get them. I like to make high conviction investments, large allocations into dislocated stocks, into stories that Wall Street is getting wrong. The SAS apocalypse, consumer companies at the beginning of this year, like ELF should have never been a $45, $50 stock back in the springtime. It's what, like 110 today. you know, it's not all AI. There's other opportunities out there, but um you know, they they they come and go, and I think Apploven is now in the spotlight for the opportunity. I think it's uh personally, I think it's one of the most obvious opportunities in the markets right now. And that's how we're able to put up these kind of returns. There's no guarantee this will continue. I'm not a financial adviser. This is not a recommendation. obviously come to your own conclusions, but that link is down below in the description of today's episode. If you guys would like to come join us, hit the like button, subscribe button, and hype button on your way out of today's video. Most importantly, have a great rest of your evening and I will see you in the next