EPISODE · May 16, 2026 · 6 MIN
Applovin: This chart is ready
from LOGO Quicktakes · host Eric Clark, LOGO Investor
AppLovin's financial profile is one of the most compelling in technology: gross margins above 80 percent, operating margins expanding through 70 percent and we think they are sustainable and can expand even further. It gets better, free cash flow conversion is incredibly high, revenue per employee is over $4 million per person (almost unheard of), and we expect revenue to keep growing above 30 percent annually with no signs of deceleration on the horizon. Important: every single company grows differently and with a different cadence over time, high & linear growth without any hiccups is rare but any temporary slowdown we view as a wonderful opportunity to aggressively acquire more shares. The growth runway is staggering, and the stock has been held back this year due to the hatred of anything related to software. Right now, the stock is down 25% YTD and we think theres at least 20% upside near term. Technically, the stock looks ready to resume its uptrend so don’t sleep on this stock, particularly right now. We also think the loathing of software stocks will one day turn to a love affair as the broad, automatic disruption of the best software stocks narrative gets turned on its head. Theres some exception values in software today, its impossible to know when the markets will care, but to date, generally theres been virtually zero evidence of any ai-disruption in most business models.Important InformationInvestors should carefully consider the Fund’s investment objectives, risks, charges, and expenses before investing. This and other information can be found in the Fund’s statutory and summary prospectuses, which may be obtained at LogoETF.com. Read the prospectus carefully before investing.
What this episode covers
AppLovin's financial profile is one of the most compelling in technology: gross margins above 80 percent, operating margins expanding through 70 percent and we think they are sustainable and can expand even further. It gets better, free cash flow conversion is incredibly high, revenue per employee is over $4 million per person (almost unheard of), and we expect revenue to keep growing above 30 percent annually with no signs of deceleration on the horizon. Important: every single company grows differently and with a different cadence over time, high & linear growth without any hiccups is rare but any temporary slowdown we view as a wonderful opportunity to aggressively acquire more shares. The growth runway is staggering, and the stock has been held back this year due to the hatred of anything related to software. Right now, the stock is down 25% YTD and we think theres at least 20% upside near term. Technically, the stock looks ready to resume its uptrend so don’t sleep on this stock, particularly right now. We also think the loathing of software stocks will one day turn to a love affair as the broad, automatic disruption of the best software stocks narrative gets turned on its head. Theres some exception values in software today, its impossible to know when the markets will care, but to date, generally theres been virtually zero evidence of any ai-disruption in most business models.Important InformationInvestors should carefully consider the Fund’s investment objectives, risks, charges, and expenses before investing. This and other information can be found in the Fund’s statutory and summary prospectuses, which may be obtained at LogoETF.com. Read the prospectus carefully before investing.
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Applovin: This chart is ready
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