AppLovin Stock Surges 30% After Crushing Earnings Expectations

The ad tech company's strong Q4 results, driven by AI-powered advertising, exceeded forecasts and prompted a major stock rally.

AppLovin reported Q4 earnings per share of $1.73 and revenue of $1.37 billion, surpassing Wall Street expectations of $1.24 per share and $1.26 billion in revenue.
Advertising revenue grew 73% year-over-year to nearly $1 billion, fueled by the success of its AI-powered AXON platform, while app revenue declined slightly.
The company announced the sale of its apps business for $900 million, refocusing on becoming a pure advertising platform with plans to expand into sectors like fintech and automotive.
AppLovin provided an optimistic Q1 2025 revenue outlook of $1.36 to $1.39 billion, exceeding analyst expectations and signaling continued growth.
The stock has soared over 700% in the past year, making it one of the best-performing U.S. tech stocks, though analysts note its high valuation may bring volatility.