AppLovin Corporation (APP) Is A "Cash Flow Machine," Says Jim Cramer

We recently published 11 Fresh Stocks Jim Cramer Talked About While Discussing AI-Led “American Renaissance”. AppLovin Corporation (NASDAQ:APP) is one of the stocks Jim Cramer recently discussed.

AppLovin Corporation (NASDAQ:APP) is another new-age advertising company that enables advertisers to digitally manage and run their campaigns. Its shares have gained a rather paltry 3.8% year-to-date as they are yet to recover from a 53% drop in mid-February and early March. AppLovin Corporation (NASDAQ:APP)’s stock fell in the aftermath of serious short seller allegations against the firm. Cramer discussed and dismissed the allegations back then; however, the stock is yet to recover all its losses. The CNBC host kept up the optimism this time as well:

“I wish AppLovin would come on because they are actually a cash flow machine. And by the way, the head of the audit committee there is the CEO of Wynn, who is terrific. And, you know what, look, it’s tough to be these guys. Their stocks have been such rocket ships, but Vlad Tenev has been very humble. I think it’s humility that I’m talking about.”

Previously, the CNBC host remarked on AppLovin Corporation (NASDAQ:APP)’s market environment:

“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.”

While we acknowledge the potential of APP as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, 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.