AppLovin shares surged nearly 30 percent on Thursday after the mobile-advertising company reported third-quarter revenue of $2.18 billion, up 55 percent from a year earlier and ahead of the roughly $2.07 billion Wall Street had expected. Net income rose 72 percent to $1.44 billion.
The stock jumped from around $270 to an intraday peak near $363, a gain of nearly 34 percent at its high before settling to close up about 30 percent on the day. AppLovin's board also added $3.2 billion to its share-buyback authorization, a signal of confidence that caught investors' attention alongside the headline numbers.
A reversal few saw coming
The rally is notable mainly for what preceded it: AppLovin had fallen 50 to 60 percent earlier this year, making it the single worst-performing stock in the S&P 500 for much of 2026 amid investor skepticism about the durability of its ad-targeting business. Thursday's report flipped that narrative, with the company crediting AI-powered ad-targeting models for an EBITDA margin of roughly 84 percent — unusually high for an advertising platform.
The move came the same day broader AI-linked stocks, including Nvidia and Micron, were suffering their worst selloff in months over midterm-related regulatory fears, a juxtaposition that highlighted how differently investors can treat AI exposure depending on whether it shows up as data-center capital spending or as profitable, monetized advertising technology.
What's next
Analysts will be watching whether AppLovin can sustain the growth rate into next quarter, and whether the buyback expansion translates into further share-price support. The company's turnaround also puts pressure on rival ad-tech platforms to demonstrate similar AI-driven efficiency gains or risk further comparisons to AppLovin's rocky first half of the year.
