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AppLovin Shares Surge 6.89% on Robust Earnings and AI Advancements

Mover TrackerWednesday, Jan 22, 2025 5:38 pm ET

1min read

On January 22, shares of AppLovin Corporation rose by 6.89%, achieving a price peak not seen since December 2024. UBS maintained its "buy" rating for AppLovin, with a target price set at $440.00.

AppLovin reported its third-quarter earnings for the fiscal year 2024, posting a revenue of $3.336 billion, which marks a 43.21% increase year over year. The company recorded a net profit of $981 million, with basic earnings per share hitting $2.91.

Founded on July 18, 2011, in Delaware, AppLovin has established itself as a leader in the mobile application industry, offering a software platform aimed at enhancing the marketing and monetization efforts of app developers. The company's diversified portfolio includes free-to-play mobile games operated through either its own studios or partner studios.

AppLovin's recent success can be largely attributed to the robust performance of its AI-driven advertising recommendation engine, AXON. This technology not only has reinforced the company's core advertising business in mobile gaming but has also shown potential for expansion into new verticals such as e-commerce and connected TV, promising significant revenue growth opportunities in the years to come.

The strategic introduction of an e-commerce pilot project has also shown early success, contributing to positive investor sentiment. Industry analysts, noting the potential in AppLovin's strategy, suggest that these initiatives could yield substantial income growth and profitability. As a result, the company continues to draw interest from investors, reflecting confidence in its long-term growth trajectory and strategic vision for the future.

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