7 Reasons I'm Not Lovin' AppLovin's IPO

AppLovin (NASDAQ: APP) a mobile game developer that also helps other companies manage and monetize their apps, went public on April 15. It raised $2.0 billion selling 25 million shares at $80 apiece.

The company was founded in 2011, and its revenue grew at a compound annual rate (CAGR) of 76% between 2016 and 2020. Applovin claims its total addressable market will expand from $189 billion in 2020 to $283 billion in 2024, according to IDC estimates.

Those growth rates sound impressive, but the stock still tumbled to $65.20 on the first day of trading, giving it a valuation of about $23 billion. I'll explain why AppLovin failed to impress investors, and why it still isn't a compelling buy after its post-IPO decline.

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Source Fool.com