AppLovin: The Little-Known Tech Stock That Crushed Nvidia and Palantir to Soar 713% in 2021

AppLovin, a little-known tech company, had a 713% gain in 2021, surpassing Nvidia and Palantir. The company connects advertisers with game developers on smartphones, allowing them to monetize their creations. After years of struggling, AppLovin received a $400 million investment from KKR in 2018 and acquired several mobile gaming studios, developing over 200 games itself. The company floated its shares on the stock market in 2021, riding the wave of interest in online games during the Covid pandemic.

AppLovin, a lesser-known tech company specializing in app monetization, experienced a remarkable surge in its stock value in 2021, with a staggering 713% gain that surpassed industry giants like Nvidia and Palantir [1]. This phenomenal growth can be attributed to the company's strategic investments, acquisitions, and the successful launch of its AI-driven software, Max 2.0.

AppLovin's journey to success began in 2018 when it received a $400 million investment from KKR. Utilizing this funding, the company acquired several mobile gaming studios and developed over 200 games itself [1]. In 2021, AppLovin made its debut on the stock market, capitalizing on the growing interest in online gaming during the Covid pandemic.

The company's remarkable growth can be traced back to its strong financial performance. According to data from S&P Global Market Intelligence, AppLovin's revenue growth was impressive, rising by 36% in Q4 2023, 48% in Q1 2024, and 44% in Q2 2024 [1]. These growth rates were particularly noteworthy, as investors had initially anticipated that the benefits from the Max 2.0 release would start tapering off. However, AppLovin reported Q3 revenue growth of 39%, surprising investors and sending the stock soaring once again [1].

AppLovin's AI-driven software offers app recommendations to users, leading to increased downloads and advertising opportunities. This creates a flywheel effect, where the more apps are boosted, the more mobile users are exposed to them, and the more advertising opportunities become available. The success of Max 2.0 is evident in AppLovin's financial performance. In 2023, the company had $357 million in net income, which increased to $1.06 billion in the first three quarters of 2024 alone [1].

In conclusion, AppLovin's impressive 713% gain in 2021 is a testament to the power of AI-driven app monetization. The company's strategic investments, acquisitions, and successful launch of Max 2.0 have positioned it for continued growth and profitability in the future.

References:
[1] "Here's Why AppLovin Stock Was Up 713% in 2024," The Motley Fool, January 10, 2025. https://www.fool.com/investing/2025/01/10/heres-why-applovin-stock-was-up-713-in-2024/