AppLovin chief executive officer Adam Foroughi said the business can "compound at roughly 30% annually over the long term." He spoke after the company reported third-quarter revenue up 55% to $2.18 billion, well above the top of its guidance. Analysts expect growth to slow to 25% in 2027 and 21% in 2028, with revenue rising from $5.48 billion in 2025 to $12.2 billion in 2028. Management guided fourth-quarter revenue to $2.37 billion to $2.40 billion, above the roughly $2.25 billion analysts expected. The adjusted EBITDA margin was 84%. Foroughi warned that model gains "won't land on a perfect quarterly schedule." Second-quarter revenue grew just 4.4% from the first quarter. The stock trades at 19x forward earnings, against a three-year average of 30x.

A company surged 31% while Nasdaq was tumbling: who is AppLovin (APP)? While technology giants were piling up billion-dollar losses on Wall Street, a company specializing in digital advertising managed to swim against the tide. AppLovin (APP), an American company that uses artificial intelligence to connect advertisers with consumers, saw its shares surge 31.04% on Thursday (5), the same day Nasdaq plunged 5.52%. AppLovin (APP) shares closed the session quoted at US$ 356.10, after the company reported net income of US$ 1.44 billion in the third quarter of 2026, growth of 72% compared with the same period last year. Revenue also surprised, reaching US$ 2.18 billion, up 55%. But, after all, what does AppLovin do, and why did a company little known outside the digital advertising world manage to attract so many investors amid a sharp selloff in technology stocks? What is AppLovin (APP) and how does the company make money? Founded in 2012 in California, AppLovin is a technology company specializing in digital advertising. Despite the name, it is not exactly an app that consumers use on their cell phones, but a platform that helps other companies find customers and increase their sales over the internet. In practice, the company works as a bridge between advertisers and advertising spaces available in apps and games. When someone uses a free game on their cell phone and encounters an ad between matches, for example, technologies such as those developed by AppLovin can take part in the process that determines which advertisement will be shown. One of the company's main differentiators is the use of artificial intelligence to analyze data and identify which ads are most likely to generate results. The goal is to allow advertisers to direct their investments toward consumers who are more likely to make a purchase or install a given app. This work is carried out mainly through Axon technology, an artificial intelligence mechanism used by the company to optimize advertising campaigns. AppLovin began gaining ground in the mobile games market but expanded its operations into other categories, including e-commerce. In 2025, it sold its portfolio of game studios to focus its business on digital advertising. The transformation gained another chapter in June 2026, when the company opened its advertising platform to advertisers of different sizes, with no invitation required. Why did AppLovin shares surge 31%? Investor enthusiasm began after the release of third-quarter results on Wednesday (4). In addition to recording significant growth, AppLovin beat analysts' projections in both revenue and earnings per share. Earnings per share reported for comparison with estimates reached US$ 4.30, above the US$ 4.03 expected by the market. Revenue of US$ 2.18 billion also exceeded the forecast of approximately US$ 2.07 billion. Another highlight was cash generation. The company reported free cash flow of US$ 1.4 billion in the quarter, an important indicator for assessing how much money the business can produce after its operating investments. For the fourth quarter, the company forecasts revenue between US$ 2.365 billion and US$ 2.395 billion, signaling an expectation of continued growth. Management also increased the authorization for share buybacks by US$ 3.2 billion, raising the authorized amount available to US$ 3.6 billion at the end of October. This type of operation can benefit shareholders by reducing the number of shares in circulation, although it does not guarantee appreciation. The combination of results above expectations, favorable projections, and share buybacks contributed to the 31.04% appreciation of the shares on Thursday. The movement was even more evident given Nasdaq's performance, an index that concentrates technology companies and fell 5.52% on the same day, pressured by concerns about billion-dollar investments in artificial intelligence. Despite the jump, AppLovin was still accumulating significant losses in 2026, showing that a recovery in a single trading session does not eliminate the risks associated with the business. With the expansion of its advertising platform and the advance of artificial intelligence use, AppLovin (APP) is trying to demonstrate that its technology can transform advertisers' growth into increasingly larger financial results. The challenge now will be to maintain this pace in a competitive market and with investors who are more demanding regarding the return on AI investments.