Applovin's shares surged 12% to $340.53 following a robust earnings report where the company reported earnings per share of $1.67 compared to estimates of $1.44. Revenue reached $1.48 billion, surpassing expectations of $1.38 billion, driven by a remarkable 71% year-over-year increase in ad revenue. Analysts from Jefferies, Morgan Stanley, and Wells Fargo have expressed optimism, reiterating buy ratings with elevated price targets, highlighting the company's strong performance and potential for continued growth in its advertising business for the second quarter.
Despite highly impressive 71% y/y ad revenue growth, we believe the fastest growth still lies ahead," said analysts led by Brent Thill, as quoted by Seeking Alpha.
APP delivered a strong beat as the core gaming ads outperformed and non-gaming continued to build momentum with an estimated ~$150mn contribution to 1Q," said the firm.
Much better-than-expected 1Q results/2Q guide vs. a backdrop of investor trepidation created by multiple short reports," said the firm.
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