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AppLovin Corporation APP stock has been a Wall Street superstar over the last two years, soaring 3,000% to blow away Nvidia and most other artificial intelligence stocks.
AppLovin is thriving as digital app developers and companies flock to its AI-boosted offerings in the hyper-competitive digital app economy. The app-monetization firm's 2025 earnings outlook has jumped even higher recently.
APP stock has traded sideways for the past two months and looks due to break out to all-time highs sooner than later.
Why this AI-Boosted Stock Outshined NVDA and Other Tech Stars
AppLovin’s software suite helps app developers improve marketing, revenue generation, and beyond to boost profitable expansion. APP’s products and solutions enable companies and app developers to acquire and keep their ideal users, measure their marketing and reach, and much more.
AppLovin’s broad sales pitch to clients is that its technology attracts more users, keeps them engaged, and increases value across customer lifecycles.
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AppLovin boasts that it connects its clients to “audiences in-app, on mobile devices, across CTV, and beyond so your business can do more, accelerate faster, and achieve meaningful growth.”
AppLovin’s array of products are critical tools that its clients utilize to compete and thrive in the digital app world that’s more competitive than ever. Everyone is competing for eyeballs in the attention economy and AppLovin’s AI-boosted offerings are proving vital.
AppLovin first rolled out its enhanced, machine learning and AI engine AXON technology in the second quarter of 2023. APP’s machine learning and AI engine is generating impressive results for its clients across mobile gaming and beyond.
APP’s Growth Outlook
AppLovin nearly doubled its sales (+93%) in 2021, growing its top line from $1.45 billion in 2020 to $2.79 billion in FY21. That massive YoY growth was always going to be difficult to replicate.
AppLovin followed that up with 1% expansion in 2022 as the digital ad market tanked, dragging down Meta and many others.
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The digital ad market has come back to life since then. More importantly, AppLovin’s improved portfolio has driven tangible results that its clients are paying for and helping boost its bottom line.
APP grew its revenue by 17% in 2023 and swung from a loss of -$0.52 a share to +$0.98.
AppLovin grew its Software Platform revenue by 66% in Q3 of 2024, as clients spend heavily on offerings that have proven to consistently help them achieve their return on ad spending goals. APP’s booming sales growth, mixed with its ability to lower costs, saw it grow its EPS by over 300%.