TLDR
- AppLovin stock surged 6.5% after S&P 500 inclusion announcement, joining index September 22, 2025
- Stock has delivered 4,650% returns since January 2023, doubling Palantir’s performance
- Q2 revenue jumped 77% to $1.26 billion with AI-powered Axon 2.0 driving growth
- Wall Street maintains Strong Buy rating with average $530 price target
- Self-service platform launching October 2025 to expand e-commerce advertising
AppLovin stock jumped 6.5% in extended trading following its S&P 500 inclusion announcement. The mobile advertising technology company will join the prestigious index on September 22, 2025, replacing MarketAxess Holdings.
The stock’s inclusion caps an extraordinary run for investors. AppLovin shares have skyrocketed 4,650% since January 2023, easily doubling AI favorite Palantir’s 2,280% gains during the same timeframe.
This performance has caught Wall Street’s attention. The company’s AI-powered advertising platform has revolutionized how mobile game developers reach users.
AppLovin’s proprietary Axon 2.0 recommendation engine uses machine learning algorithms to match advertisers with potential customers. Morgan Stanley analysts have praised Axon as a “best-in-class machine learning ad engine.”
Strong Q2 Results Drive Momentum
The company’s second quarter performance showcased its AI technology’s power. Revenue surged 77% year-over-year to $1.26 billion. Earnings per share jumped 168% to $2.39.
AppLovin has beaten earnings expectations for six consecutive quarters by an average of 23%. Wall Street projects 54% annual earnings growth through 2026.
These results came despite criticism from short sellers including Fuzzy Panda Research, Muddy Waters, and Culper Research. The strong fundamentals have maintained investor confidence.
Jefferies analyst James Heaney recently boosted his price target to $615 from $560. The five-star analyst raised his fiscal 2026 revenue estimate by 2% after meeting with management.
Expansion Into New Markets
AppLovin is expanding beyond mobile game advertising into e-commerce. This move could increase its addressable market by more than tenfold.
The company plans to launch a self-service advertising platform in October 2025. CEO Adam Foroughi calls this “the foundation for our next decade of growth.”
Currently, AppLovin offers managed advertising services. The self-service option will let brands control their own campaigns, potentially attracting smaller advertisers.
Historical data suggests S&P 500 inclusion provides additional upside. Over the past decade, stocks added to the index have averaged 13.9% returns during their first 12 months as members.
Index funds tracking the S&P 500 must purchase newly added stocks. This creates mechanical buying pressure that often boosts share prices.
Wall Street maintains a Strong Buy consensus on AppLovin stock. The rating reflects 16 Buy recommendations versus three Holds. The average price target of $530.59 indicates 8.2% upside potential.
AppLovin trades at 70 times earnings, which appears reasonable given projected growth rates. The company competes against giants like Google, Meta, and Amazon but has carved out a profitable mobile advertising niche.
