"I don't think that anyone saw this coming three years ago. On Sept. 5, S&P Global announced that advertising-technology company AppLovin would be added to the S&P 500 index later this month -- a milestone in AppLovin's publicly traded journey that was unimaginable just three years ago. AppLovin makes money by helping to get its customers' apps -- usually mobile video games -- discovered and monetized."
"But three years ago, its business results were mediocre. In fact, it almost seemed like management was ready to throw in the towel, considering that it made an unsolicited proposal to merge with Unity Software in a deal that would have put Unity's management in charge of the combined entity. Unity declined the offer, but it likely regrets that decision now. In the years since AppLovin's proposal, Unity's stock price is down 13%. But AppLovin's stock price has jumped 1,480%."
AppLovin shifted from modest results to rapid growth by using its mobile-game operations to collect first-party data and develop AI-driven adtech. The company launched Axon 2 in Q2 2023, which catalyzed revenue expansion and led to average quarterly year-over-year growth above 27% since the launch. AppLovin's pricing model charges only when customers' advertising campaign goals are met, aligning company revenue with client outcomes. The stock surged roughly 1,480% since an earlier Unity merger proposal, while Unity's stock fell about 13%. AppLovin will join the S&P 500, marking a significant corporate milestone.
Read at The Motley Fool
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