AppLovin shares gain 31.04% after third-quarter beat

AppLovin reported third-quarter earnings of $4.30 a share on Thursday, Nov. 5, above the $4.03 analyst consensus estimate, according to company results reported by TheStreet.

AppLovin shares gained 31.04%, or $84.35, to close at $356.10 on Thursday, after revenue of $2.18 billion beat Wall Street expectations of $2.07 billion.

The advertising-technology company forecast fourth-quarter revenue of $2.365 billion to $2.395 billion, compared with Wall Street’s $2.25 billion forecast. AppLovin also projected fourth-quarter adjusted EBITDA of $1.995 billion to $2.025 billion; adjusted EBITDA is earnings before interest, taxes, depreciation and amortization, excluding certain costs.

AppLovin raised its share-repurchase authorization by $3.2 billion, leaving $3.6 billion available as of the end of October. The increase accounted for about 89% of the remaining authorization, according to Atlas360 calculations.

“Given continued confidence in the Company’s future, our board of directors approved an increase to our share repurchase authorization of $3.2 billion, bringing our total current share repurchase authorization to $3.6 billion as of the end of October,” the company said in its third-quarter results.

The rally followed a difficult stretch for a stock that had been one of the market’s stronger performers in 2024 and 2025. AppLovin shares rose about 713% in 2024 and 108% in 2025, before falling about 47% year to date even after Thursday’s advance, according to Yahoo Finance data reported by TheStreet.

RBC Capital raised its AppLovin price target to $520 from $500 and kept an Outperform rating. The firm said revenue and adjusted EBITDA beat Wall Street estimates and attributed part of the improvement to an advertising-model update delayed from the second quarter.

Morgan Stanley lifted its target to $450 from $400 and maintained an Overweight rating. The firm said the third-quarter performance “directly challenge concerns” about slower growth, weaker innovation and competition, and pointed to a “major model breakthrough” in AppLovin’s core gaming advertising business.

Scotiabank analyst Nat Schindler cut his target to $450 from $515 while keeping an Outperform rating. Schindler said the investor debate had moved from whether AppLovin’s AXON advertising technology works to whether recent gains can be repeated, a shift he viewed as more favorable for the company.

RBC said AppLovin delivered stronger margins despite higher spending on model training and computing resources, as infrastructure improvements and revenue growth more than offset those costs.