Today witnessed an unprecedented surge in AppLovin's stock, propelling it to a never-before-reached peak.
The stock of mobile game monetization company AppLovin (APP) is experiencing an incredible surge on Thursday, boosted by impressive financial results for the third quarter of 2024. As of 10:30 a.m. ET, AppLovin's shares have climbed approximately 48% and reached an all-time high of over $250 per share. This is a significant jump from its end-of-year 2022 price of under $10 per share.
A Standout Growth Performance
In the preceding quarter, AppLovin's leadership had anticipated revenue of $1.135 billion and EBITDA of $650 million, both at the peak of their predictions. However, in Q3, the company reported revenue of $1.2 billion and EBITDA of $722 million, surpassing expectations on both counts.
For the upcoming quarter, AppLovin's management is forecasting a 31% year-over-year revenue increase at the midpoint of their projection. EBITDA is also projected to rise by around 58%. Although these numbers represent a decrease compared to Q3's growth rates of 39% and 72%, respectively, they still managed to impress investors.
Just over a year ago, AppLovin introduced a new version of its artificial intelligence software, leading to an immediate surge in growth. It was anticipated that the results would improve during the initial year. However, the company is now past its one-year anniversary and continues to show sustainable growth of over 30% profitably.
AppLovin's Strategies for Long-term Growth
AppLovin's leadership forecasts an annual growth rate of 20% to 30% over the long term. And investor interest seems to be piqued by what co-founder and CEO Adam Foroughi mentioned during the Q3 earnings call: "We're growing more confident that this sector will expand significantly in 2025 and contribute significantly to our growth for the following year and beyond."
The sector Foroughi referred to: AppLovin's software chiefly assists in monetizing mobile games. However, the company is currently experimenting with the e-commerce sector, with impressive results so far. In essence, AppLovin's business is performing exceptionally well in its primary market. And now, it appears that the company will maintain its profitable growth trend by diversifying into new sectors, potentially contributing to long-term stock gains.
In light of AppLovin's impressive financial performance, many investors are now exploring opportunities to invest in the company's stocks. Given the company's projected annual growth rate of 20% to 30% over the long term, these investments could potentially yield significant returns.
Furthermore, with AppLovin's expansion into the e-commerce sector, which has shown promising results, savvy investors might consider diversifying their finance portfolio to include this mobile game monetization company.
