AppLovin’s fourth-quarter earnings report surpassed expectations, with revenue jumping 43% to $1.37 billion. The company’s AI-powered AXON advertising software drove the growth, and shares rose more than 20%. Analysts lifted their price targets, citing improved financials and a strong growth outlook.
The tech firm reported net income of $599.2 million, or $1.73 per share, more than tripling from a year earlier. Revenue growth was driven by new category expansions, including fintech, insurance, and automotive. The company plans to use this momentum to drive future growth.
Analysts at Wolfe praised the divestment of its apps business, saying it will make the company’s financials cleaner while improving its growth outlook. Oppenheimer analysts also raised their price target to $550 from $490, citing expanding valuation multiples.
Wall Street remains bullish on AppLovin, with 77% of analysts rating the stock a buy or outperform. The company is expected to exceed analyst estimates in the first quarter, driven by strong advertising revenue growth.
Source: https://www.cnbc.com/2025/02/13/applovin-stock-skyrockets-after-earnings-beat-strong-guidance.html