Shares of AppLovin (NASDAQ: APP) surged more than 14% in pre-market trading on Thursday after the company reported better-than-expected first-quarter earnings and announced the sale of its mobile gaming division.
The digital advertising platform reported revenue of $1.48 billion for the first quarter, a 40% increase year over year, and beating analyst expectations of $1.38 billion.
Net income rose to $576.42 million ($1.67 per share) from $236.18 million (67 cents per share) a year ago. The figure also topped Wall Street estimates of $1.43 per share.
Looking ahead, AppLovin expects second-quarter advertising revenue to range from $1.2 billion to $1.22 billion, well above analysts’ forecasts of $1.11 billion.
The upbeat earnings report comes after a turbulent start to the year for the adtech company’s stock. Earlier in 2025, short seller Muddy Waters accused AppLovin of engaging in “scammy” practices. On Wednesday, the firm criticized a blog post from AppLovin executives defending the company, calling it full of “demonstrably false statements.” These accusations followed similar reports from two other short-seller firms in February.
In addition to its earnings report, AppLovin announced it had agreed to sell its mobile gaming business to privately held Tripledot Studios for $400 million in cash. Following the transaction, AppLovin will hold a 20% stake in Tripledot. The deal is expected to close in the second quarter.
As of the latest update, AppLovin (NASDAQ: APP) shares are up 14.28%, trading at $346.80.
Jennifer Tacker is a staff writer at ABBO News. She holds a B.A. from the University of Waterloo and a B.Ed from Western University. Jennifer has been active in the stock market and crypto sector for a decade. She specializes in technical analysis and trading strategies. Read Full Bio
