AppLovin's Stock Soaring? Or Are We Just Being Played?
Okay, let's get this straight. AppLovin (APP), a company I honestly hadn't heard of until five minutes ago, is suddenly the darling of Wall Street? Analysts are tripping over themselves to slap "$700," "$850" price targets on this thing? Give me a break.
What's the Catch? (There's Always a Catch)
I mean, look at the numbers. The stock traded as high as $623.78 recently. And they beat earnings estimates by a measly $0.11 per share? Is that really enough to justify this kind of hype? I'm not buying it.
And then there's this nugget: "CTO Vasily Shikin sold 30,000 shares... for a total transaction of $13,127,100.00." Okay, so the guy who's supposed to be leading the tech side of the company is cashing out a cool thirteen million? That doesn't exactly scream "confidence" to me. What does he know that we don't?
Oh, and let's not forget Director Dawson Alyssa Harvey also dumped some shares. It's always the "insiders" selling high. Shady, if you ask me.
Hedge Funds: The Blind Leading the Blind
So, these hedge funds are piling in, right? Revolve Wealth Partners LLC and Bison Wealth LLC are throwing around a few hundred thousand like it's monopoly money. Principal Financial Group Inc. is in for twenty million? Seriously? These are the same geniuses who told us Enron was a great investment.
I'm not saying AppLovin is the next Enron, offcourse. But let's be real, hedge funds are just as likely to follow the herd off a cliff as they are to find the next big thing. They are not your friends.
And what's with this "narrative science technology" that generated the news alert? Are we seriously relying on algorithms to tell us what to think about stocks now? This is how Skynet starts, people.
Speaking of tech, I'm still waiting for my damn self-driving car that was promised to me back in 2015. Where's my flying car, huh? Why are we obsessing over app stock price instead of solving real problems?
Is AppLovin Really Better Than Okta?
According to some random source, APP and DAVE are better than OKTA because of "lower valuation (P/OpInc) compared to OKTA But higher revenue and operating income growth". Okay, so they're cheaper and growing faster. Got it. But what do they do?
AppLovin, apparently, is "building a software-based platform for advertisers to enhance the marketing and monetization of their content." Translation: they help companies bombard you with more ads. Great. Just what the world needs. I could use a good adblocker right now. According to AppLovin (NASDAQ:APP) Shares Up 1.4% After Strong Earnings, the company had strong earnings recently.
So, What's the Real Story?
It's all smoke and mirrors. A bunch of overpaid analysts hyping up a mediocre company so they can pump the stock and dump it on unsuspecting retail investors. Don't fall for it.
Tags: app stock