AppLovin Corporation: A Bullish Thesis on Ad Monetization and Growth Potential

AppLovin Corporation is a leading digital advertising company, competing with Meta, Snap, and TikTok for advertiser budgets. It reported over $11 billion in gross ad spend in Q1 and has achieved strong revenue growth with minimal headcount, sustaining industry-leading operating margins. CEO Adam Foroughi's capital allocation strategy signals confidence in intrinsic value and a lack of near-term M&A ambitions. The company identifies a vast untapped opportunity in in-game advertising, estimating an additional $100 billion in total addressable market. AppLovin is positioned as a durable cash generator with EBITDA margins of 80-85% and conversion of over 50% of EBITDA to free cash flow.