AppLovin’s stock price skyrocketed on Thursday after the company exceeded financial expectations for the fourth quarter of 2024. As of 11 a.m. ET, AppLovin’s share price was up 31% and reached an all-time high of over $500 per share.
The company’s growth has been impressive, with revenue increasing by 43% in 2024 compared to 2023. Q4 revenue grew at an accelerated rate of 44%, far exceeding management’s initial guidance of 32%. AppLovin’s software helped app companies get discovered and monetized, resulting in a 73% year-over-year increase in software revenue.
AppLovin’s net income was $599 million, representing a profit margin of nearly 44%. The company’s success has unlocked significant investment value. At the start of 2023, AppLovin’s stock traded below $10 per share. However, its extraordinary growth and cost management have led to an incredible return on investment.
AppLovin is expanding into new growth verticals, including e-commerce and connected TV, which could sustain its growth rate. While trading at over 30 times sales, the company’s growth momentum makes it difficult to find a more profitable stock. The e-commerce launch has started strongly, with management expecting 30% growth in Q1.
Overall, everything looks good for AppLovin right now, and shareholders should enjoy the moment.
Source: https://www.fool.com/investing/2025/02/13/why-applovin-stock-skyrocketed-to-a-new-all-time-h