Jim Cramer Says AppLovin Has 'No Real Competition'
'AppLovin is a hugely profitable way for companies to advertise through mobile video games, which are typically free as long as you watch the ads. This company's got software and AI solutions that make its model unassailable. They have no real competition. The revenue growth is stunning. It was a $10 billion company two years ago. Now it's $120 billion, as this is the company that can get your ad in front of everyone who plays games on their phone. I know it's richly valued. I don't care. When you have no competition, well, guess what? You do pretty darn well.'
A close-up of a mobile device, showing an advertiser reaching out to a consumer via a software-based platform.
AppLovin (NASDAQ:APP) provides a software platform that supports app marketing, monetization, and distribution through advertising solutions, analytics tools, and connected TV services. The company also operates mobile games and offers tools for app developers and publishers.
While we acknowledge the potential of APP as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.
READ NEXT: 30 Stocks That Should Double in 3 Years and 11 Hidden AI Stocks to Buy Right Now.
Disclosure: None. This article is originally published at Insider Monkey.
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Chipotle Shares Slide on Weak Same-Store Sales. Time to Buy the Dip or Run for the Hills?
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With the stock now down 24% in 2025 as of July 24, let's see if this dip is a buying opportunity or if investors should run for the hills. Traffic declines After seeing its comparable-restaurant sales fall 0.4% in Q1, the weakness continued, with Chipotle seeing a 4% decline in Q2. Transactions sank 4.9%, while its average check size rose 0.9%. The company called out May as being particularly weak, but it then began to see a rebound in June, with comparable sales and traffic turning positive. It credited the launch of its limited-time Adobo Ranch dip offering and "Summer of Extras" reward program for the improvement. It said that while July has been choppy, the positive comp and transaction trends have continued. It also called out the strong performance of its Chipotle Honey Chicken limited time offering, saying it accounted for one out of every four orders. Despite the recent rebound, the company lowered its full-year same-store outlook. It now expects comparable-store sales to be flat compared to an earlier outlook of low single-digit growth. However, the company does believe it can still generate mid-single-digit comparable-restaurant sales over the long term. Management does not believe it's making any missteps, with its recent struggles more a result of shifts in consumer sentiment. Overall, Chipotle grew its revenue by 3% to $3.06 billion in the quarter, while adjusted earnings per share (EPS) fell 3% to $0.33. Analysts were looking for adjusted EPS of $0.33 on revenue of $3.11 billion, as compiled by LSEG. Restaurant-level operating margins dipped 150 basis points to 27.4%. This is an important metric, as it measures how profitable each individual restaurant is. The drop appears largely due to higher wage costs and sales deleveraging, as the company said that supply chain and in-restaurant initiatives have more than offset the declines from increasing portion sizes that had been too small. 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