AppLovin's AI Triumph: Stock Soars 600% Amidst Record-Breaking Revenue Growth
2min read Recently, AppLovin, a company listed on the US stock market, has become a global "AI star stock," capturing significant attention. As per its 2024 Q3 financial results published on November 7, the company reported $1.2 billion in revenue, marking a 39% year-over-year increase, and net income of $434 million, a stunning 300% rise. This performance led to a dramatic 46% one-day surge in its stock price, contributing to an over 600% increase since the beginning of the year, with a market cap approaching $100 billion, reaching $95.29 billion as of November 15.
This growth is rooted in AppLovin's strategic investments in mobile advertising and app analytics over the years. The company launched its AI-driven advertising engine model, AXON 2.0, in early 2023, followed by the development of the intelligent advertising software solution eDiscovery, allowing rapid large-scale ad bidding within milliseconds between demand and supply.
To date, AppLovin has achieved two major breakthroughs in the AI sphere: Firstly, the upgrade to AXON 2.0 significantly increased the efficiency of producing premium content; secondly, the accuracy of ad placements has seen substantial enhancement.
Reports indicate that marketing could be the fastest area to monetize AI commerce. AppLovin's soaring stock price could reflect the commercial potential of AI-driven marketing, surpassing market expectations. On November 12, during the 2024 Baidu World Conference, Baidu's founder Robin Li commented on AI models and applications, suggesting that significant advancements over the last 24 months have dispelled previous illusions, ushering in the era of AI applications.
As international AI application performances reach explosive growth and vertical models hasten their value realization, domestic AI applications are garnering increased attention. On November 14, Leo Group (002131.SZ) announced that it hosted a visit from several financial institutions, including Anxin Fund and Sequoia China. During the meeting, the company elaborated on the progress of its internet marketing section, Leo Digital, in AI technology applications, particularly in the smarter deployment of advertising.
Leo Digital has focused its efforts on AI technology utilization in the deployment process, delving into foundational issues of AI tech applications within the industry. In 2023, the company ventured into AI advertising tool development, launching the AIGC ecosystem platform "LEO AIAD" and the marketing field model "Leo Unity." This tool's core functions are akin to AppLovin's AI advertising engine model, AXON 2.0, accentuating user needs identification and deeper user interaction to enhance customer conversion and deliver value.
In terms of advertising efficiency through AI empowerment, LEO AIAD has integrated internal programmatic purchasing systems and desktop trading tools to boost effectiveness. This integration of various Trading Desk products expands AI tech capacities within Leo Digital.
During the recent Double 11 shopping festival, the Pangu engine's ad deployment tasks surged by 37% year-over-year, with operational instances increasing ninefold, surpassing 35 million and outstripping manual capabilities. Ad spending rose by 40%, with transaction processing peaking at 46,000 actions per minute.
Looking ahead, Leo Group sees the integration of AI technologies bringing significant development opportunities to digital marketing entities. The company is committed to applying AI in advertising, providing more intelligent and efficient ad services, continuously optimizing algorithms, and enhancing technological capabilities to maintain a competitive edge.
Experts suggest historical technological revolutions have had profound impacts on the capital markets. Mirroring the mobile internet's trajectory, AI's future lies in application fronts, with "AI+" poised to revive the "internet+" era's success. The industry's history demonstrates that niche AI applications often gain traction abroad before quickly catching up domestically. Consequently, the market holds an optimistic view of the disruptive industry shifts driven by AI and is positive about the long-term prospects of AI+ integration.