Thanks for the link @XMFRob! I’ve upped my allocation in APP significantly after that last report, looks like they get a 99 on this IBD rating system.
There’s another solid thread on APP too which is more of a primer on the business on Saul’s board.
I’m finding the bear case for APP seems to center around the revenue growth is not durable and they don’t like the product itself.
APP is getting into the CTV and going to compete directly with The Trade Desk (TTD). The Trade Desk has a bigger market cap, but less than half the revenue, and much less EBITDA/net income. Either The Trade Desk is way overvalued, or APP is way undervalued and I think it’s more the latter that the market does not recognize the opportunity in APP.
For what it’s worth these IBD rankings do have some bad data in them, or the model doesn’t handle when EPS crosses over from being negative to positive. When I look at the score card for HIMS in the IBD rankings they have “# quarters of EPS Acceleration” for HIMS as 0 which is just plain wrong.
However, they clearly have at least two quarters of EPS revenue acceleration (see below graph).
Was wondering Rob is this HIMS company is a business that you would potentially invest in? Putting some links here for reference,
