Jim Cramer Notes That AppLovin is One of the “Pretty Darn Profitable” Stocks

AppLovin Corporation (NASDAQ:APP) is one of the stocks that Jim Cramer recently discussed. Cramer noted that the stock is one of “the best of the lot,” as he commented:

“PARC exhausts me. I’m talking about my handy acronym for Palantir, AppLovin, Robinhood, and Coinbase. These are four of the many stocks that seem to have no quit in them, even if they all pulled back hard into the close today, giving us a rare moment to evaluate them on relative weakness. It’s better for me to talk about these stocks on a down day so you can get a discount if you were so inclined…

Now, even though I say PARC, these four stocks are just representatives of what’s been going on in this market. They’re actually the best of the lot. They have earnings. They have analysts following them who come up with estimates. Although judging by the way people have been buying these names, neither of them, those things like estimates and analysts, seems to matter at all…

While flying cars and experimental batteries don’t yet make money, PARC does, lots of it, oodles. Palantir, AppLovin and Robinhood, and Coinbase, they’re all pretty darn profitable. By comparison, during the dot-com era, most of these red-hot companies had little to no revenues and were actually running out of money, constantly tapping the public markets, at the same time that insiders were furiously [sell, sell, sell] their own stock because they knew there was no justification for these sky-high valuations. They got out.”

Photo by Stephen Dawson on Unsplash

AppLovin Corporation (NASDAQ:APP) develops a software platform that helps advertisers optimize marketing, app monetization, and user acquisition through real-time bidding, analytics, and connected TV tools. The company also provides app management solutions and operates free-to-play mobile games. During an early June episode, Cramer cited future competition worries around the company. He said:

“Okay, the only thing I worry about is that I think another company can come in and challenge AppLovin… and if that happened, then I think you’d be in trouble because I don’t think it’s as nearly as proprietary as other people think. I know many companies that are gunning for them right now, and I want to be a little bit careful about that, but they’re a very, very good company. Very good.”

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