Your Portfolios in Brief
AppLovin (NASDAQ: APP), a technology player specializing in mobile advertising and artificial intelligence, has established itself as one of the top-performing U.S. stocks in 2024. Its ability to combine growth, innovation, and profitability have attracted the attention of analysts and investors, strengthening its position in portfolios focused on emerging technologies.
Founded in 2012 in Palo Alto, AppLovin develops technologies that enable mobile app developers to monetize, distribute, and optimize their products. Its flagship solution, AXON, relies on artificial intelligence to automate ad bidding and maximize digital campaign returns.
The company operates in more than 100 countries and employs around 1,500 people. Listed on the stock exchange in 2021, it has since experienced a volatile stock market journey, marked by a period of instability followed by a spectacular recovery.
Highlights in 2024
1. A year of exceptional performance
The year 2024 marked a turning point for AppLovin, whose stock soared 713% over the year, making it one of the most profitable Tech stocks. This spectacular rebound follows an 89% drop in 2022, proof of a massive return of investor confidence driven by strong results and a clear strategy.
2. Record results in Q1 2025
• Revenue of US$1.48 billion, up 40% year-over-year.
• Advertising revenue of US$1.16 billion, representing 71% growth.
• Net income of US$576 million, or US$1.67 per share, versus US$234 million and US$0.67 the previous year.
• Adjusted EBITDA margin reaching 68%, reflecting remarkable operational efficiency.
3. Major strategic shift
AppLovin sold its mobile gaming business to Tripledot Studios for US$400 million, while retaining a 20% stake. This transaction allows the company to focus on its most profitable activity: AI-driven programmatic advertising. This strategic refocus was welcomed by the markets, contributing to the stock’s rise.
4. Ambitious proposals: toward a partnership with TikTok?
In May 2025, AppLovin submitted a bold proposal to ByteDance for a merger with TikTok (excluding China), aiming to manage the platform’s U.S. and international operations. Although described as a “long shot” by CEO Adam Foroughi, this attempt illustrates the company’s ambition to become a key player in global mobile video advertising.
Why This Stock is One to Watch
AppLovin embodies several fundamental qualities sought by investors in 2025:
• Accelerated growth driven by AXON, a technology dominating the mobile advertising market.
• Strong and sustainable profitability, with an EBITDA margin close to 70%, rare for a high-growth tech company.
• Clear strategic positioning, refocused on the highest-performing activities, while maintaining targeted exposure to gaming.
• Long-term growth potential in a global mobile advertising market estimated in the hundreds of billions of dollars.
• Ambitious corporate vision, capable of proposing strategic partnerships with digital giants.
Conclusion
We have chosen to hold AppLovin in our portfolio for all the reasons mentioned above. The company proved in 2024 that it can:
• Overcome difficult market cycles,
• Effectively refocus its strategy,
• Harness the power of artificial intelligence in a booming sector.
In a context where mobile advertising is becoming the norm and AI is redefining business models, AppLovin offers a rare combination of growth, profitability, and strategic vision. We firmly believe that this stock will continue to generate value for our clients in the medium and long term. The stock closed Thursday’s session at 12%.
________________________________________
Stocks in Brief
Monday
• Dow Jones: -0.24% (41,218.83 points)
• S&P 500: -0.64% (5,650.38 points)
• NASDAQ: -0.74% (17,844.24 points)
• TSX (Toronto): -0.31% (24,953.52 points)
On the currency market, the Canadian dollar traded at an average rate of 72.40 US cents, down from 72.46 US cents the previous day.
________________________________________Monetary Uncertainty and Trade Tensions Weigh on Markets
North American markets closed in negative territory on Monday, held back by investors caution ahead of the Federal Reserve’s monetary policy meeting starting Tuesday, and by ongoing uncertainty surrounding international trade relations. The S&P 500 ended a nine-day winning streak — its longest since 2004 — amid widespread prudence.
________________________________________Stocks in Brief
Top Gainers of the Session
• UnitedHealth (+1.27%): The stock rose thanks to the stability of the healthcare sector and its defensive status in a nervous market.
• Berkshire Hathaway (-4.98%): Warren Buffett’s conglomerate dropped sharply after he announced his departure as CEO. He will be replaced by Greg Abel, though Buffett remains chairman of the board.
Top Losers of the Session
• Netflix (-1.94%), Warner Bros Discovery (-1.99%), Disney (-0.41%): Entertainment giants were shunned after Donald Trump authorized 100% tariffs on foreign-produced films, citing national security reasons.
• ExxonMobil (-2.74%), Chevron (-2.17%), ConocoPhillips (-4.16%): Energy stocks fell following the drop in crude prices, affected by fears of a slowdown in global demand.
________________________________________Sector Performance
• Sector Up: Services
The service sector benefited from a better-than-expected ISM index, indicating an acceleration in activity in April. The index rose to 51.6%, from 50.8% the previous month, beating forecasts of 50.4%. This data supports the view of a resilient U.S. economy, even amid geopolitical and monetary uncertainty.
• Sector Down: Energy
The energy sector led the losses, weighed down by falling oil and natural gas prices. Concerns over global growth and the potential impact of trade tensions added pressure on hydrocarbon-related stocks.
________________________________________Commodities Market
At the New York Mercantile Exchange:
• Crude oil: Fell $USD 1.16 to $USD 57.13 per barrel, weighed down by demand concerns.
• Natural gas: Declined $USD 0.08 to $USD 3.55 per million BTU.
• Gold: Surged $USD 79.00 to $USD 3,322.30 per ounce, as investors sought safety amid uncertainty.
• Copper: Slight gain of $USD 0.03 to $USD 4.70 per pound supported by anticipation of potential stimulus measures in China.
________________________________________
Tuesday
• Dow Jones: -0.95% (40,829.00 points)
• S&P 500: -0.77% (5,606.91 points)
• NASDAQ: -0.87% (17,689.66 points)
• TSX (Toronto): +0.09% (24,974.72 points)
On the currency market, the Canadian dollar traded at an average rate of 72.55 US cents, unchanged from the previous day.
________________________________________
Wall Street Ends Lower as Trade Deals Remain Elusive
U.S. markets recorded a second consecutive losing session, weighed down by the lack of concrete news on the trade negotiation front and while awaiting the Federal Reserve’s decision scheduled for Wednesday. Although Treasury Secretary Scott Bessent said the United States had received interesting proposals from 17 countries, no official agreement has been reached. President Trump, for his part, made ambiguous remarks during his meeting with Canadian Prime Minister Mark Carney, stating that he did not want imports of steel or cars from Canada.
________________________________________
Stocks in Brief
Top Gainers of the Session
• Mattel (+2.78%): Rose after announcing the suspension of its annual forecasts, a decision well received by the market in a context of tariff uncertainty.
• Suncor (+1.11%): The Canadian stock benefited from the resilience of the energy sector, supporting the TSX’s advance.
Top Losers of the Session
• DoorDash (-7.44%): Collapsed after announcing the acquisition of SevenRooms for $USD 1.2 billion and Deliveroo for over $USD 3 billion, transactions perceived as risky.
• Tesla (-1.75%): Penalized by a sharp drop in its sales in Germany, a consequence of political controversies and a lack of new products in its catalogue.
• Goldman Sachs (-1.80%): Weighed on the Dow Jones, affected by the climate of economic and tariff uncertainty.
• Nvidia and Meta Platforms: Declined in an unfavourable environment for the tech sector, without any clear short-term catalyst.
________________________________________
Sector Performance
• Sector Up: Energy (Canada)
In Toronto, the advance of the energy sector allowed the TSX to post a slight gain despite U.S. gloom. Stocks such as Suncor and Enbridge benefited from stable oil prices and better short-term visibility.
• Sector Down: Technology
Technology stocks continued their pullback from the previous day. Large caps such as Nvidia, Meta, and Tesla were weighed down by the lack of clarity regarding global trade prospects and investor caution ahead of the Fed.
________________________________________
Wednesday
• Dow Jones: +0.70% (41,113.97 points)
• S&P 500: +0.43% (5,631.26 points)
• NASDAQ: +0.27% (17,738.16 points)
• TSX (Toronto): +0.75% (25,161.18 points)
On the currency market, the Canadian dollar traded at an average rate of 72.48 US cents, down from 72.55 US cents the previous day.
________________________________________
Fed Holds Rates Steady, Wall Street Rebounds Despite Uncertainties
Wall Street closed higher on Wednesday after a session marked by the highly anticipated announcement from the Federal Reserve, which left interest rates unchanged as expected. This decision to hold reflects the Fed’s desire to preserve a degree of monetary stability in a context of growing geopolitical and trade tensions. During his press conference, Fed Chair Jerome Powell stressed that the U.S. economy now faces a “mass of uncertainties,” particularly linked to the tariff hikes announced by the Trump administration.
According to him, if these trade tariffs persist, they could not only slow growth but also fuel inflationary pressures and increase unemployment — a difficult dilemma for the central bank, whose dual mandate is to control inflation while supporting employment. This cautious stance by the Fed, which refuses to commit to a short-term rate cut, initially sowed hesitation in the markets.
However, the clarity of the message and the absence of any major surprise reassured investors, who ultimately pushed the main indexes higher late in the session. The prospect of a potential easing of trade tensions, fuelled by the announcement of an imminent meeting between U.S. and Chinese officials in Switzerland, also contributed to this renewed optimism on Wall Street.
________________________________________
Stocks in Brief
Top Gainers of the Session
• Disney (+10.68%): Soared after posting quarterly results above expectations. The company impressed investors with strong growth in streaming subscribers, improved profitability, and a rebound in attendance at its theme parks. It also announced the upcoming opening of a new park in Abu Dhabi.
• Nvidia (+3.10%), AMD (+1.76%), Broadcom (+2.36%): Semiconductor stocks jumped, driven by rumours that the Trump administration will lift some restrictions on the export of technology chips.
Top Losers of the Session
• Alphabet (-7.26%): Google’s parent company fell sharply after Apple revealed a drop in traffic to its search engine — a first in 20 years. Statements suggesting that Apple might move away from Google have fuelled concerns.
• Apple (-1.00%): Declined after comments indicating the company is exploring integrating new AI-based search engines, potentially signalling the end of its agreement with Google.
________________________________________
Sector Performance
• Sector Up: Technology – Semiconductors
The semiconductor sector stood out after press leaks revealed Washington’s intention to remove certain export restrictions. This rekindled enthusiasm for stocks like Nvidia, AMD, and Broadcom, already considered strategic in the global AI race.
• Sector Down: Information Technology – Digital Platforms
The marked decline of Alphabet and, to a lesser extent, Apple weighed on the digital sector as a whole. The prospect of a strategic shift by Apple regarding searches on its devices has heightened nervousness about the future of Google Search.
________________________________________
Commodities Market
At the New York Mercantile Exchange:
• Crude oil: Dropped $USD 1.02 to $USD 58.07 per barrel, amid ongoing concerns over global demand.
• Natural gas: Rose $USD 0.16 to $USD 3.62 per million BTU.
• Gold: Fell $USD 30.90 to $USD 3,391.90 per ounce, following a slight easing of inflation fears.
• Copper: Declined $USD 0.12 to $USD 4.66 per pound, affected by uncertainties surrounding trade negotiations.
________________________________________
Thursday
• Dow Jones: +0.62% (41,368.45 points)
• S&P 500: +0.58% (5,663.94 points)
• NASDAQ: +1.07% (17,928.14 points)
• TSX (Toronto): +0.37% (25,254.06 points)
On the currency market, the Canadian dollar traded at an average rate of 71.91 US cents, down from 72.48 US cents the previous day.
________________________________________
Trump Announces Preliminary Trade Deal with the United Kingdom
The New York Stock Exchange rose on Thursday, driven by the announcement of a preliminary trade deal between the United States and the United Kingdom. Although unsigned, the agreement raised hopes of a shift in the global tariff war launched earlier this year by the U.S.
________________________________________
Stocks in Brief
Top Gainers of the Session
• AppLovin (+12.0%): The company beat earnings expectations and announced the sale of its mobile gaming unit for $400 million, including an equity stake in Tripledot Studios.
• Carvana (+11.0%): The online used car retailer posted a better-than-expected Q1 profit, reassuring investors about its path to profitability.
• Boeing (+3.44%): Shares climbed following news of a potential $10 billion aircraft order from the UK, a direct result of the trade framework.
Top Losers of the Session
• Krispy Kreme (-24.0%): Shares plummeted after the company suspended its full-year outlook and announced a review of its McDonald’s partnership, citing macroeconomic weakness.
• Alnylam Pharmaceuticals (-5.0%): The stock was hit by renewed concerns over potential drug price caps under a revived “most favoured nation” policy.
• Eli Lilly (-3.25%): The stock dropped amid reports that Donald Trump may revive a plan to lower Medicare drug prices, reviving regulatory fears in the sector.
________________________________________
Sector Performance
• Sector Up: Technology
Tech stocks led the gains after the Trump administration announced it would remove Biden-era chip restrictions. Alphabet (+1.92%) also rebounded after clarifying that search traffic from Apple devices continues to grow.
• Sector Down: Healthcare / Biopharma
Healthcare stocks fell amid concerns over renewed pricing pressure. Regeneron (-2.36%), AbbVie (-1.33%), and Merck (-1.00%) were among the notable decliners in the sector.
________________________________________
Friday
• Dow Jones: +0.30% (41,480.00 points)
• S&P 500: +0.40% (5,686.00 points)
• NASDAQ: +0.60% (17,970.00 points)
________________________________________
Markets Welcome a More Conciliatory Tone on Global Trade
U.S. stocks opened higher on Friday, supported by renewed optimism over international trade after President Donald Trump suggested that many trade deals were “in the works,” while also considering reducing tariffs on Chinese imports ahead of scheduled talks this weekend in Switzerland.
• Dow Jones (+0.30%): The index climbed, encouraged by signs of trade de-escalation and on track for a third consecutive week of gains.
• S&P 500 (+0.40%): Set for a stable weekly performance, amid cautious optimism.
• NASDAQ (+0.60%): Driven by tech stocks sensitive to trade tensions, the index appeared poised to end the week in positive territory.
________________________________________
Conclusion
The trading week ended on a more optimistic, yet cautious note as markets absorbed early signs of a potential thaw in global trade tensions. Thursday’s announcement of a preliminary trade deal between the United States and the United Kingdom — the first since the Trump administration introduced its “reciprocal” tariffs — sparked renewed hope on Wall Street. Though limited in scope, this agreement could serve as a blueprint for future deals with other key partners, particularly China, with whom discussions are set to take place this weekend in Switzerland.
Despite these encouraging signals, investors remain wary. President Trump floated the idea of lowering tariffs on Chinese imports to 80%, a level still well above what markets had anticipated in hopes of reviving global trade flows. This ambiguity has sustained a volatile atmosphere, especially as significant outflows continue from U.S. equity funds — a sign of fragile investor confidence.
The major indexes moved in different directions throughout the week: the Dow Jones notched a third straight week of gains, while the S&P 500 and the NASDAQ slightly declined. Investors welcomed the prospect of a gradual normalization in trade relations but remain highly attuned to political decisions, geopolitical tensions, and the Federal Reserve’s stance in an increasingly uncertain economic environment.
In short, this week marked a shift toward a more positive tone, though it did little to dispel the structural concerns that have weighed on markets since the beginning of the year. Much now hinges on the outcome of upcoming talks with China and Washington’s ability to turn its trade ambitions into concrete agreements.
________________________________________
