2 Reports

APP

Investology > APP
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AppLovin (APP) at $645: Extreme Valuation Demands Immediate Risk Management

AppLovin's current valuation metrics paint a clear picture of extreme overvaluation: The P/E ratio of 85-94x stands out as one of the highest in the technology sector. Even high-growth Trade Desk trades at 65x. The PEG ratio of 4.66 is particularly concerning. Traditional valuation theory suggests anything above 2.0 indicates overvaluation. This metric suggests the market is paying nearly 5x for each unit of growth, an unsustainable premium. This premium pricing requires extraordinary execution just to maintain current levels.
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Unity Technologies (U): Recalibrating Amid Monetization and Innovation Challenges

Unity Technologies (U) is a leading gaming engine provider renowned for its intuitive usability, versatility, and extensive community support. Specific recent restructurings, including the divestiture of digital twin and professional service divisions to Capgemini, have refocused Unity on its core gaming engine. However, monetization challenges and talent retention remain critical concerns.