{"date":"2024-12-04T00:00","headerImageUrl":"https://structuredproducts-ch-pub-uat.leonteq.com/product-news/product-homepage-banner/applovin_leonteq_structured_products_product+homepage+banner.jpg","subTitle":"High-flyer with an AI touch","windowTitle":"AppLovin","category":"coupon-giant","title":"AppLovin","body":"<p>Technology in general and artificial intelligence (AI) in particular are among the strong drivers of the 2024 stock market year. As far as individual stocks are concerned, the names of US large caps such as the chip company Nvidia, the streaming giant Netflix and the social media giant Meta Platforms quickly come to mind in this context. It is true that this trio is among the top performers in the NASDAQ-100 index just a few weeks before the close. However, a smaller and far less well-known company has really stolen the show from the heavyweights. AppLovin's share price has risen by no less than 754% in the year to date. This means that the stock, which has been listed on the US technology exchange NASDAQ since April 2021, has outperformed the \"main AI beneficiary\" Nvidia by around 570 percentage points. Until recently, AppLovin would not even have appeared in the NASDAQ-100 ranking. It was only on November 18 that the share was included in the US technology barometer.<\/p>\n\n<div><generic-chart title=\"AppLovin: Share Price (in USD)\"> <chart-line title=\"AppLovin\" path=\"Chart_apploving.csv\" format=\"date, number\" color=\"#f7a824\"><\/chart-line> <x-axis type=\"datetime\"><\/x-axis> <\/generic-chart><\/div>\n <footer>Source: Refinitiv, as at 02.12.2024 <br />Historical data is not a reliable indicator of future performance.<\/footer>\n\n\n<h3>Broad customer base<\/h3>\n<p>The Silicon Valley company's success model is in its name. With their \"love of apps\", the Californians have their finger on the pulse of the times. \"Our goal is to create meaningful connections between companies and their ideal customers,\" writes the management in the 2023 annual report. AppLovin uses special software to help its users monetize contacts and increase their reach. The company, which was founded in 2012, also develops its own apps. AppLovin's solutions are used in particular by game developers. However, many other industries are now using the digital tools. For example, the mail order company Otto uses the \"AppDiscovery\" application, a marketing software from the Californians, to capture as many attractive orders as possible on its app.<\/p>\n\n<h3>Enormous growth<\/h3>\n<p>AppLovin uses AI here and in many other places. A specially developed advertising engine uses the software's immense reach and wealth of data to optimize the analysis in a matter of seconds. Thanks to such possibilities, AppLovin has been labeled an \"AI profiteer\" on Wall Street. However, the rally is not just based on fantasy - the company is also delivering hard facts: For the third quarter of 2024, AppLovin reported revenue of just under USD 1.2 billion, representing year-on-year growth of 40%. The operating margin (adjusted EBITDA) was 60% in the past quarter, 11 percentage points higher than in the third quarter of 2023. CEO and co-founder Adam Foroughi expects further growth. For the period from October to December 2024, he predicts sales of between USD 1.24 and USD 1.26 billion and a stable margin. Both the reported figures and the outlook were above analysts' expectations. Wall Street reacted euphorically: AppLoving's stock market value has roughly doubled since the figures were presented on November 6.<\/p>\n\n\n<div>\n<generic-chart title=\"Revenue and operating margin\">\n  <x-axis categories=\"3. Quarter 2023, 4. Quarter 2023, 1. Quarter 2024, 2. Quarter 2024, 3. Quarter 2024, 4. Quarter 2024\"/>\n      <chart-column title=\"Revenue (in Mio. USD)\" data=\"864,953,1058,1080,1198,1250\" format=\"number\"/>\n      <chart-line title=\"EBITDA-Margin (in %)\" data=\"49,50,52,56,60,60\" format=\"number\" yAxisRight=\"true\"/>\n<\/generic-chart> \n<\/div>\n <footer>Source: AppLovin, as at: 06.11.2024 <br />Historical data is not a reliable indicator of future performance.<\/footer>\n\n<h3>Impressive coupons<\/h3>\n<p>With the chart pointing almost vertically upwards, the question naturally arises as to whether the rally has perhaps gone a little too far. It is precisely against this background that the new soft callable barrier reverse convertibles on the top performer could be of interest. The issue is equipped with a conditional coupon payment. AppLovin is put to the test on a monthly basis. If the share is quoted above the coupon trigger level of 50% of the initial fixing on the reference date, the distribution is made. In the product currency CHF, the conditional coupon is 20% p.a., while the USD-denominated variant offers 5 percentage points p.a. more. If the underlying fails to reach the low hurdle, the payment can be made later thanks to the memory effect. As soon as AppLovin meets the requirements on one of the following observation days, Leonteq will transfer the current coupon and all previously unpaid coupons. The issue can be redeemed early by the issuer on a monthly basis, for the first time after three months. The BRC is also partially protected. As long as the underlying does not fall to the barrier of 50% or lower in the next twelve months, investors receive the full nominal amount, unless redeemed early at 100%.<\/p>\n\n\n<h3>Callable Barrier Reverse Convertibles with conditional coupon<\/h3>\n<div>  \n    \n    <SavedSearch :allProducts=\"false\" :filter=\"{&quot;partner&quot;:&quot;LEONTEQ&quot;,&quot;currencies&quot;:[],&quot;issuers&quot;:[],&quot;productCategories&quot;:[],&quot;productGroups&quot;:[],&quot;productTypes&quot;:[],&quot;maturityRangeKey&quot;:[],&quot;distanceToBarriers&quot;:[],&quot;barrierLevelRanges&quot;:[],&quot;strikeLevelRanges&quot;:[],&quot;underlyings&quot;:[],&quot;omni&quot;:&quot;\\&quot;CH1292088114\\&quot;,\\&quot;CH1292088122\\&quot;&quot;,&quot;conditions&quot;:{&quot;+snapshot.product.secondary_market:true&quot;:false,&quot;&quot;:true,&quot;+snapshot.product.in_subscription:(\\&quot;LEONTEQ\\&quot;)&quot;:false,&quot;-_exists_:snapshot.product.in_subscription&quot;:false},&quot;marketVenues&quot;:[],&quot;assetClasses&quot;:[],&quot;barrierTypes&quot;:[],&quot;countrySpecificTitles&quot;:[],&quot;sortFields&quot;:[{&quot;fieldName&quot;:&quot;snapshot.product.investment.investment_currency&quot;,&quot;sortOrder&quot;:&quot;ASC&quot;}],&quot;displayColumns&quot;:[&quot;conditionalCoupon&quot;,&quot;underlying&quot;,&quot;barrierPercentage&quot;,&quot;conditionalCouponTriggerLevel&quot;,&quot;currency&quot;,&quot;lastTradingDate&quot;,&quot;tenor&quot;,&quot;subscriptionEndDate&quot;,&quot;valor&quot;,&quot;documentLinks&quot;]}\">\n                <\/SavedSearch>\n  <\/div>\n<div><ltq-table id=xxx title=\"Steuerliche Behandlung Valor 129208811, 129208812\">\n<tbody>\n<tr>\n<td>Swiss Federal Income Tax<\/td>\n<td>For private investors with tax domicile in Switzerland holding the Product as part of their private property, gains realised during the term of the Product and on the Redemption Date qualify as capital gains and are therefore not subject to the Federal Direct Tax.<br/>\n    The tax treatment regarding the cantonal and communal income taxes can differ from the tax treatment regarding the Federal Direct Tax. But in general the income tax treatments are corresponding.<\/td>\n<\/tr>\n<\/tbody>\n<\/template> <template v-slot:below=\"\"> <LtqCardBody><footer>The tax information provided herein is a non-binding summary and only provides a general overview of the potential Swiss tax consequences linked to this Product at the time of issue. Tax laws and tax interpretation may change at any time, possibly with retroactive effect.<br/>Source: Termsheet<\/footer><\/LtqCardBody> <\/template> <\/ltq-table><\/div>\n<div>      <p>We look forward to answering all of your questions about our products and how they are traded. Please don't hesitate to get in touch! Phone: <a href=\"tel:+41588001111\">058 800 11 11<\/a>, email <a href=\"mailto:info@leonteq.com\">info@leonteq.com<\/a> or <a href=\"/contact\" title=\"Contact\">contact us here<\/a>.\n<\/p>\n  <\/div>","url":"coupon-applovin","investmentThemeVerticalImageUrl":"https://structuredproducts-ch-pub-uat.leonteq.com/product-news/sidenav-banner/applovin_leonteq_structured_products_sidenav+banner.jpg","thumbnailUrl":"https://structuredproducts-ch-pub-uat.leonteq.com/product-news/thumbnail/applovin_leonteq_structured_products_thumbnail.jpg"}