AppLovin, a mobile app marketing platform headquartered in Palo Alto, California, exceeded Wall Street’s expectations for the first quarter and provided positive guidance for the current period. The company’s strong performance in the first quarter was attributed to the improvement of its Axon technology, resulting in outstanding business results. During after-hours trading on Wednesday, AppLovin stock rose 8.1% to reach 80, surpassing its regular session decline of 4%. Late trades on Wednesday pushed AppLovin stock to a record-high trading territory, reaching as high as 84 in after-hours trading.
In the March-ended quarter, AppLovin earned 67 cents a share on sales of $1.06 billion, surpassing analysts’ estimates of 57 cents a share on sales of $974 million. This represents a significant improvement from the year-earlier period when AppLovin reported a loss of a penny a share on sales of $715 million. For the current quarter, AppLovin predicted revenue between $1.06 billion to $1.08 billion, with the midpoint of $1.07 billion exceeding Wall Street’s second-quarter target of $1.01 billion. The company attributes its strong performance to positive trends in the app advertising market with continued year-over-year growth and a shift towards real-time bidding.
AppLovin’s software platform allows app developers to market, monetize and analyze their apps while producing mobile games such as “Bingo Story,” “Game of War,” and “Solitaire Cruise.” The company’s stock is included on the IBD Tech Leaders list for consumer technology, software and semiconductor stocks follow Patrick Seitz on X @IBD\_PSeitz for more information and insights on these sectors. Additionally, check out MarketSurge for comprehensive research charts data coaching all in one place for latest trends and market insights.
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