BUY, SELL, HOLD (2)

AppLovin Stock Soars on Earnings Beat, Gaming Unit Sale

The company also announced plans to sell its mobile gaming business

Deputy Editor
May 8, 2025 at 10:43 AM
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    AppLovin Corp (NASDAQ:APP) stock is up 15.5% at $350.56 at last glance, after the AI-powered marketing platform posted blowout quarterly results and announced a major business shift. The company reported earnings of $1.67 per share, beating the consensus estimate of $1.45, while revenue came in at $1.48 billion — also topping expectations. AppLovin also announced plans to sell its mobile gaming business to Tripledot Studios in a deal valued at $800 million in cash.

    At least five analysts have responded with price-target hikes, the largest of which came from Morgan Stanley to $420 from $350. Options traders are also piling in. More than 47,000 calls and 35,000 puts have changed hands so far, 4 times the average intraday volume, with new positions opening at the most active July 350 call.

    Thanks to today’s surge, APP is now up 8.2% in 2025 and extending its year-over-year lead to 373.1%. The security is heading for its third-straight weekly win and is trading back above the $350 level — a recent area of chart resistance — for the first time since late March.

     

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