Applovin Corporation
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APP now good value?

343
APP has been having a bad year, a bad month, a bad week and even a bad day. Yes, there are a few headwinds for APP:

- Potential saturation of the mobile market
- New players in the mobile ad space
- Slow takeoff of non-mobile ads

The reality is that APP is trading under 22x past PE and is ~14x forward looking PE (ok, you can discount forward PE a bit if you are pessimistic on its growth but conservatively it is under 17x). APP is being dumped on now due to a few recent price changes and reports from analysts but the current price of the stock is truly in high value range now.

With earnings coming up the first week of November look for a rebound to the 310-320 level. Current play, buy and sell Oct 30 calls at the 310 ($6.50) and 320 ($4.20) strikes.

Some large holder has been liquidating, once they are out we will see a good opportunity for a swing trade.

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