Is it Worthy to Invest in AppLovin (APP)?

Vulcan Value Partners, an investment management firm, published its “Vulcan Value Partners Large Cap Fund” fourth quarter 2021 investor letter – a copy of which can be downloaded here. Vulcan’s Large Cap Composite Fund delivered a 1.2% net return for the fourth quarter of 2021, compared to its benchmarks, the Russell 1000 Value Index and S&P 500 Index which delivered 7.8% and 11% returns respectively for the same period. Spare some time to check the fund’s top 5 holdings to have a clue about their top bets for 2022.

Vulcan Value Partners Large Cap Fund, in its Q4 2021 investor letter, mentioned AppLovin Corporation (NASDAQ:APP) and discussed its stance on the firm. Founded in 2012, AppLovin Corporation (NASDAQ:APP) is a Palo Alto, California-based mobile technology company with a $20.6 billion market capitalization, and is currently spearheaded by its CEO, Adam Foroughi. AppLovin Corporation (NASDAQ:APP) delivered a -2.45% and it closed at $54.90 per share on March 22, 2022.

Here is what Vulcan Value Partners Large Cap Fund has to say about AppLovin Corporation (NASDAQ:APP) in its Q4 2021 investor letter:

“AppLovin Corp. provides software solutions for mobile app developers. The company owns a portfolio of over 200 mobile games and operates an advertising platform for third-party gaming apps. The two segments create a mutually beneficial relationship. AppLovin collects and uses data gathered from its own portfolio of gaming apps to enhance its ad placement capabilities on its software platform. Recent privacy changes made by various governments and by Apple that restrict the collection of consumer data have made AppLovin’s first-party data more valuable and have strengthened its competitive position. In addition, AppLovin acquired Twitter’s MoPub advertising platform at a very attractive price. This acquisition provides the opportunity to add significant scale to AppLovin’s existing business. In the short time since we have purchased the stock, our high opinion of management has been cemented by AppLovin’s outstanding operating results and capital allocation.”

Our calculations show that AppLovin Corporation (NASDAQ:APP) failed to obtain a mark on our list of the 30 Most Popular Stocks Among Hedge Funds. AppLovin Corporation (NASDAQ:APP) was in 31 hedge fund portfolios at the end of the fourth quarter of 2021, compared to 24 funds in the previous quarter. AppLovin Corporation (NASDAQ:APP) delivered a -41.49% return in the past 3 months.

In February 2022, we published an article that includes AppLovin Corporation (NASDAQ:APP) in the 5 Stocks to Invest In According to Carl Anderson’s Marcho Partners. You can find more than 100 investor letters from hedge funds and prominent investors on our hedge fund investor letters 2021 Q4 page.

Disclosure: None. This article is originally published at Insider Monkey.