AppLovin Corporation (APP) saw its stock surge 5.14% in pre-market trading on Thursday, following a positive outlook from analysts and dismissal of short-seller concerns.
The mobile tech company was featured as one of "3 Strong-Buy Stocks for the Momentum Investor" by Zacks Investment Research, highlighting its strong earnings growth and positive momentum. Analysts cited AppLovin's impressive trailing four-quarter earnings surprise of 23.5% on average, suggesting continued strong financial performance.
Despite recent attacks from short-sellers alleging fraud and questionable business practices, Wall Street analysts have backed AppLovin's stock, dismissing the short-seller reports as baseless. The market appears to be shrugging off these concerns, focusing instead on the company's robust fundamentals and growth potential.
A separate article highlighted AppLovin's exceptional return on capital employed (ROCE) of 39%, outpacing the industry average and indicating the company's ability to reinvest its earnings at ever-higher rates of return. Additionally, AppLovin's capital base has expanded by 399% over the past five years, suggesting ample opportunities for future growth and value creation.
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