AppLovin’s stock price surged more than 700% in 2025 after the company reported better-than-expected earnings and guidance. The stock jumped 30% in extended trading on Wednesday following strong revenue growth.
The company’s artificial intelligence-powered ad system drove profit growth, which exceeded analyst estimates. AppLovin has signed a term sheet to sell its apps business for $900 million, including $500 million in cash.
AppLovin’s advertising segment saw significant growth, with revenue increasing 73% to almost $1 billion. The company expects first-quarter revenue of between $1.36 billion and $1.39 billion, exceeding analyst estimates.
The company attributes its success to its AI-powered ad system, which is still in the early stages of iteration. AppLovin’s CEO Adam Foroughi stated that the roadmap ahead is filled with opportunities for growth.
Source: https://www.cnbc.com/2025/02/12/applovin-soars-almost-30percent-on-earnings-guidance-beat.html