AppLovin Corporation APP has surged 20% over the past three months, outpacing the broader industry’s modest 6% rally and outperforming major digital ad rivals like Alphabet GOOGL and Meta Platforms META, which have gained 7% and 10%, respectively.
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With digital advertising giants regaining momentum, investor sentiment toward ad tech is turning increasingly bullish. The key question now: does AppLovin still present an attractive entry point for investors, or is the stock already running hot?
AppLovin has solidified its leadership in mobile advertising, powered by its next-gen AI engine, Axon 2, which launched in the second quarter of 2023. Since its debut, Axon 2 has radically enhanced AppLovin’s ad performance, helping to quadruple advertising spend on its platform.
This explosive growth has led to an estimated $10 billion annual run rate in ad spend from gaming clients, pushing APP into the upper echelon of global ad tech firms by valuation.
Axon 2’s importance goes far beyond mere optimization. In a post-Identifier for Advertisers environment that disrupted mobile user acquisition strategies, Axon 2 served as a critical catalyst for recovery. While Western mobile gaming experienced stagnation in 2022, Axon 2 reignited ad-driven momentum. Though in-app purchases are seeing modest, mid-single-digit growth, AppLovin’s MAX publisher base is expanding at a significantly faster rate, underscoring Axon 2’s strategic advantage.
Google, Microsoft MSFT and Salesforce CRM are rapidly advancing generative AI. Microsoft integrates AI in Office via Copilot and expands Azure’s AI. Google embeds AI in Workspace and enhances Vertex AI. Salesforce incorporates AI across its CRM, especially through Einstein Copilot and Data Cloud. Microsoft is also focusing on AI governance, while Google is strengthening AI security. Salesforce further refines dynamic customer experiences.
While these giants focus on enterprise productivity and CRM, Applovintakes a different route, using AI to drive direct monetization in mobile advertising.
AppLovin’s financial performance has matched its technological breakthroughs. In the second quarter of 2025, revenues increased 77% year over year, reflecting strong market demand. Adjusted EBITDA jumped 99% year over year, showcasing improved operational efficiency. Net income skyrocketed 156% from the prior year, demonstrating APP’s ability to translate revenue growth into significant profitability. For the full year 2024, revenues climbed 43% year over year, while adjusted EBITDA surged 81%, underscoring AppLovin’s ability to seize market opportunities while maintaining efficiency.
