AppLovin shares jump 45% after strong earnings report and raised revenue outlook

AppLovin shares surged 45% on Thursday after the company reported strong earnings and raised its revenue guidance. The stock is now up 515% in 2024, with a market cap exceeding $80 billion. In the third quarter, AppLovin's revenue rose 39% to $1.2 billion, surpassing estimates. Earnings per share reached $1.25, well above the expected 92 cents. For the fourth quarter, the company anticipates revenue between $1.24 billion and $1.26 billion. The growth is driven by AppLovin's AI advertising engine, AXON, which boosted software platform revenue by 66%. Net income increased 300% to $434.4 million. Analysts have raised their price target for the stock from $170 to $270.