AppLovin's stock soars 1,227% since May 2022 with strong Q1 revenue growth and expanding margins.

AppLovin has delivered an exceptional 1,227% return since May 2022, significantly outperforming the S&P 500. Its Q1 revenue grew 59% to $1.84 billion, driven by a 93% increase in net revenue per install from Axon Ads Manager despite an 18% drop in install volume. The company improved margins by reducing cost of revenue to 11.05% and sales/marketing expenses to 3.3% of sales, resulting in a net income of $1.21 billion. The analyst maintains a soft 'Buy' rating, noting the valuation is reasonable but may be downgraded if shares rise another 20% as they near fair value.