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AppLovin Stock Skyrockets 20% in a Month: Should You Board the Train?
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Key Takeaways
AppLovin stock has jumped 20% in three months, outpacing industry and major digital ad rivals.
Axon 2 AI has quadrupled ad spend, lifting APP to a $10B annual run rate from gaming clients.
Q2 2025 revenues rose 77%, EBITDA 99%, and net income surged 156% year over year.
AppLovin Corporation (APP - Free Report) has surged 20% over the past three months, outpacing the broader industry’s modest 6% rally and outperforming major digital ad rivals like Alphabet (GOOGL - Free Report) and Meta Platforms (META - Free Report) , which have gained 7% and 10%, respectively.
Image Source: Zacks Investment Research
With digital advertising giants regaining momentum, investor sentiment toward ad tech is turning increasingly bullish. The key question now: does AppLovin still present an attractive entry point for investors, or is the stock already running hot?
Axon 2: Powering AppLovin’s AI Advantage
AppLovin has solidified its leadership in mobile advertising, powered by its next-gen AI engine, Axon 2, which launched in the second quarter of 2023. Since its debut, Axon 2 has radically enhanced AppLovin’s ad performance, helping to quadruple advertising spend on its platform.
This explosive growth has led to an estimated $10 billion annual run rate in ad spend from gaming clients, pushing APP into the upper echelon of global ad tech firms by valuation.
Axon 2’s importance goes far beyond mere optimization. In a post-Identifier for Advertisers environment that disrupted mobile user acquisition strategies, Axon 2 served as a critical catalyst for recovery. While Western mobile gaming experienced stagnation in 2022, Axon 2 reignited ad-driven momentum. Though in-app purchases are seeing modest, mid-single-digit growth, AppLovin’s MAX publisher base is expanding at a significantly faster rate, underscoring Axon 2’s strategic advantage.
Google, Microsoft (MSFT - Free Report) and Salesforce (CRM - Free Report) are rapidly advancing generative AI. Microsoft integrates AI in Office via Copilot and expands Azure’s AI. Google embeds AI in Workspace and enhances Vertex AI. Salesforce incorporates AI across its CRM, especially through Einstein Copilot and Data Cloud. Microsoft is also focusing on AI governance, while Google is strengthening AI security. Salesforce further refines dynamic customer experiences.
While these giants focus on enterprise productivity and CRM, Applovintakes a different route, using AI to drive direct monetization in mobile advertising.
Explosive Financial Momentum: Revenue and Profitability on the Rise
AppLovin’s financial performance has matched its technological breakthroughs. In the second quarter of 2025, revenues increased 77% year over year, reflecting strong market demand. Adjusted EBITDA jumped 99% year over year, showcasing improved operational efficiency. Net income skyrocketed 156% from the prior year, demonstrating APP’s ability to translate revenue growth into significant profitability. For the full year 2024, revenues climbed 43% year over year, while adjusted EBITDA surged 81%, underscoring AppLovin’s ability to seize market opportunities while maintaining efficiency.
Analyst Projections Signal Continued Growth Ahead
Analyst expectations reflect continued optimism. The Zacks Consensus Estimate for third-quarter 2025 earnings is pegged at $2.32 per share, up 86% from the year-ago period. Revenue for the same quarter is expected to reach $1.34 billion, indicating 11.7% year-over-year growth. Looking further ahead, full-year 2025 earnings are projected to increase 98%, with 2026 earnings expected to rise an additional 51%. Revenues are also expected to increase 17% in 2025 and 26% in 2026. These projections underscore confidence in the company’s monetization engine and its ability to deliver strong earnings amid digital ad market expansion.
Image Source: Zacks Investment Research
AppLovin Remains a Convincing Buy
AppLovin's recent rally is not merely hype; it is rooted in tangible performance, cutting-edge technology, and an expanding advertiser base. The success of Axon 2, coupled with soaring financial metrics and bullish analyst forecasts, supports a bullish outlook. While broader tech firms are steering AI toward enterprise productivity, AppLovin is capitalizing on AI’s power to drive direct, scalable monetization in mobile advertising, a strategy that is paying off. AppLovin remains a strong buy for investors seeking exposure to high-growth AI-powered tech with proven execution.
Image: Bigstock
AppLovin Stock Skyrockets 20% in a Month: Should You Board the Train?
Key Takeaways
AppLovin Corporation (APP - Free Report) has surged 20% over the past three months, outpacing the broader industry’s modest 6% rally and outperforming major digital ad rivals like Alphabet (GOOGL - Free Report) and Meta Platforms (META - Free Report) , which have gained 7% and 10%, respectively.
With digital advertising giants regaining momentum, investor sentiment toward ad tech is turning increasingly bullish. The key question now: does AppLovin still present an attractive entry point for investors, or is the stock already running hot?
Axon 2: Powering AppLovin’s AI Advantage
AppLovin has solidified its leadership in mobile advertising, powered by its next-gen AI engine, Axon 2, which launched in the second quarter of 2023. Since its debut, Axon 2 has radically enhanced AppLovin’s ad performance, helping to quadruple advertising spend on its platform.
This explosive growth has led to an estimated $10 billion annual run rate in ad spend from gaming clients, pushing APP into the upper echelon of global ad tech firms by valuation.
Axon 2’s importance goes far beyond mere optimization. In a post-Identifier for Advertisers environment that disrupted mobile user acquisition strategies, Axon 2 served as a critical catalyst for recovery. While Western mobile gaming experienced stagnation in 2022, Axon 2 reignited ad-driven momentum. Though in-app purchases are seeing modest, mid-single-digit growth, AppLovin’s MAX publisher base is expanding at a significantly faster rate, underscoring Axon 2’s strategic advantage.
Google, Microsoft (MSFT - Free Report) and Salesforce (CRM - Free Report) are rapidly advancing generative AI. Microsoft integrates AI in Office via Copilot and expands Azure’s AI. Google embeds AI in Workspace and enhances Vertex AI. Salesforce incorporates AI across its CRM, especially through Einstein Copilot and Data Cloud. Microsoft is also focusing on AI governance, while Google is strengthening AI security. Salesforce further refines dynamic customer experiences.
While these giants focus on enterprise productivity and CRM, Applovintakes a different route, using AI to drive direct monetization in mobile advertising.
Explosive Financial Momentum: Revenue and Profitability on the Rise
AppLovin’s financial performance has matched its technological breakthroughs. In the second quarter of 2025, revenues increased 77% year over year, reflecting strong market demand. Adjusted EBITDA jumped 99% year over year, showcasing improved operational efficiency. Net income skyrocketed 156% from the prior year, demonstrating APP’s ability to translate revenue growth into significant profitability. For the full year 2024, revenues climbed 43% year over year, while adjusted EBITDA surged 81%, underscoring AppLovin’s ability to seize market opportunities while maintaining efficiency.
Analyst Projections Signal Continued Growth Ahead
Analyst expectations reflect continued optimism. The Zacks Consensus Estimate for third-quarter 2025 earnings is pegged at $2.32 per share, up 86% from the year-ago period. Revenue for the same quarter is expected to reach $1.34 billion, indicating 11.7% year-over-year growth. Looking further ahead, full-year 2025 earnings are projected to increase 98%, with 2026 earnings expected to rise an additional 51%. Revenues are also expected to increase 17% in 2025 and 26% in 2026. These projections underscore confidence in the company’s monetization engine and its ability to deliver strong earnings amid digital ad market expansion.
AppLovin Remains a Convincing Buy
AppLovin's recent rally is not merely hype; it is rooted in tangible performance, cutting-edge technology, and an expanding advertiser base. The success of Axon 2, coupled with soaring financial metrics and bullish analyst forecasts, supports a bullish outlook. While broader tech firms are steering AI toward enterprise productivity, AppLovin is capitalizing on AI’s power to drive direct, scalable monetization in mobile advertising, a strategy that is paying off. AppLovin remains a strong buy for investors seeking exposure to high-growth AI-powered tech with proven execution.
APP currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.