AppLovin Stock Climbs Following Strong Q4 Earnings

By Patricia Miller

Feb 13, 2025

2 min read

AppLovin's strong Q4 performance and growth outlook highlight opportunities for retail investors in the tech and advertising sectors.

Graphic of Phone with Colourful Apps protruding and a microphone

#What You Need To Know

AppLovin, a leading company in the app marketing and ad tech sector based in Palo Alto, California, reported robust financial performance for the fourth quarter of the fiscal year. The company achieved earnings per share of $1.73 on total revenues of $1.37 billion, surpassing analyst expectations, which estimated $1.25 in EPS and $1.26 billion in revenue. Year-over-year, AppLovin demonstrated significant growth, with EPS soaring by 253% and revenue increasing by 44%.

Looking ahead to the first quarter, AppLovin projects revenue to remain stable at $1.37 billion, reflecting a 29% year-over-year growth rate, slightly above analysts' estimates of $1.32 billion. Following the earnings announcement, AppLovin's stock experienced a substantial after-hours increase of over 29%, reaching $490.

The company continues to enhance its core business by providing comprehensive software solutions for app developers, while also diversifying into mobile gaming and advertising-based services. Enhanced monetization and expanding profit margins underscore the growing preference for AppLovin's AI-driven tools among advertisers.

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#Why This Is Important for Retail Investors

  1. Strong earnings and revenue growth indicate solid company performance, potentially translating into increased stock value.

  2. AppLovin's expansion into various markets, including mobile gaming and e-commerce, diversifies its revenue streams, suggesting lower risk for investors.

  3. The significant after-hours stock surge signals market confidence, presenting opportunities for retail investors to capitalize on potential gains.

  4. Monitoring such companies can provide insights into trends in tech and advertising, which are critical sectors for future investment strategies.

  5. Identifying well-performing stocks like AppLovin may help retail investors make informed choices in an increasingly competitive investment landscape.

#Relevant ETFs

Some investors prefer to invest in stocks via an exchange-traded fund for ease and reduced risk. Some relevant ETFs include the following:

  • Invesco QQQ Trust

  • ARK Innovation ETF

  • Global X Social Media ETF

  • iShares Expanded Tech Sector ETF

  • First Trust Cloud Computing ETF

  • SPDR S&P Software & Services ETF

Learn How to Invest in Crypto

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Important Notice And Disclaimer

This article does not provide any financial advice and is not a recommendation to deal in any securities or product. Investments may fall in value and an investor may lose some or all of their investment. Past performance is not an indicator of future performance.

Patricia Miller does not hold any position in the stock(s) and/or financial instrument(s) mentioned in the above article.

Patricia Miller has not been paid to produce this piece by the company or companies mentioned above.

Digitonic Ltd, the owner of ValueTheMarkets.com, does not hold a position or positions in the stock(s) and/or financial instrument(s) mentioned in the above article.

Digitonic Ltd, the owner of ValueTheMarkets.com, has not been paid for the production of this piece by the company or companies mentioned above.