AppLovin Corporation (APP) has reported a 50% increase in stock price over the past three months, outperforming the industry average of 21%. Economic giants like Alphabet (GOOGL) and Meta Platforms (META) saw smaller gains of 7% and 14%, respectively.
The company’s growth is attributed to its next-gen AI engine, Axon 2, which launched in Q2 2023 and has reportedly quadrupled ad spending from gaming clients, achieving a $10 billion annual run rate. Financial results for Q1 2025 showed revenues rising 40% year-over-year, adjusted EBITDA increasing 83%, and net income soaring 144% compared to the previous year.
Analysts predict further growth, with earnings for Q2 2025 estimated at $2.01 per share (up 125.8% year-over-year) and revenues expected to reach $1.45 billion, representing a 33.9% increase. Full-year 2025 earnings are projected to grow by 85.7%, continuing the positive trend in AppLovin’s performance in the digital advertising market.
