"Shares of AppLovin (NASDAQ: APP) rallied 22.5% in August, according to data from S&P Global Market Intelligence. The artificial intelligence (AI)-powered mobile game advertising engine delivered another exceptional quarter when it reported second-quarter earnings on Aug. 6. Not only were results great, but management also laid out near-term catalysts as the company penetrates new market segments. Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now."
"AppLovin has put together a seamless platform that allows advertisers to acquire users and monetize mobile games, but is now opening up its platform to more non-gaming companies, such as e-commerce and connected-TV apps. Management piloted e-commerce customers starting in Q4 last year, and has been methodically ramping up in 2025, actually limiting advertiser participation as AppLovin tweaks its ad engine on new publishers and advertisers."
AppLovin grew revenue 77% year-over-year to $1.26 billion in Q2, while EPS from continuing operations rose to $2.28, a 153% increase, beating expectations. Management guided to revenue of $1.33 billion at the midpoint and forecast an 81% adjusted EBITDA margin. The AI-powered ad platform monetizes mobile games and is expanding into non-gaming segments including e-commerce and connected-TV apps, with e-commerce pilots starting in Q4 and a ramp in 2025. The e-commerce segment now accounts for about 10% of revenue and is expected to accelerate during the holiday season. A self-service AXON feature is scheduled for Oct. 1.
Read at www.fool.com
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