AppLovin (APP) stock surged 6.4% in Wednesday’s extended trading session, as the artificial intelligence (AI)-powered mobile ad-tech company delivered better-than-expected results for the third quarter of 2025. Moreover, the company issued upbeat fourth-quarter guidance amid continued momentum in its business.
Meet Your ETF AI Analyst
- Discover how TipRanks' ETF AI Analyst can help you make smarter investment decisions
- Explore ETFs TipRanks' users love and see what insights the ETF AI Analyst reveals about the ones you follow.
As of Wednesday’s closing, AppLovin stock has rallied about 91% year-to-date. However, it has pulled back about 10% over the past month amid news of an investigation by the U.S. Securities and Exchange Commission (SEC) into the company’s data-collection practices. According to a Bloomberg report, the SEC investigation was triggered by a whistleblower complaint and multiple short-seller reports.
AppLovin Delivers Robust Q3 Results
AppLovin’s Q3 revenue surged 68% year-over-year to $1.41 billion, surpassing the Street’s estimate of $1.34 billion. The company attributed the strong growth in its top line to the improved performance of its Axon Advertising platform. Meanwhile, earnings per share (EPS) jumped 96% to $2.45, ahead of the consensus estimate of $2.38.
Looking ahead, AppLovin expects its Q4 revenue to be in the range of $1.57 billion to $1.60 billion compared to analysts’ forecast of $1.55 billion. The company expects its Q4 adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) to be between $1.29 billion and $1.32 billion.
Investors also reacted positively to the increase in AppLovin’s share repurchase plan by $3.2 billion, bringing the total remaining share repurchase authorization to $3.3 billion as of the end of October. In the third quarter, AppLovin repurchased 1.3 million shares for $571 million.
Is APP a Good Stock to Buy?
Currently, Wall Street has a Strong Buy consensus rating on AppLovin stock based on 18 Buys and two Hold recommendations. The average APP stock price target of $682.56 indicates 10.6% upside potential.
These ratings/price targets are expected to be revised as analysts react to AppLovin’s Q3 print.
