Applovin, a leading software maker specializing in artificial intelligence (AI) solutions to boost sales, saw a significant jump in its stock price following the release of better-than-expected second-quarter earnings.
- Applovin’s stock (ticker: APP) surged 22% in premarket trading on Thursday, reaching $36.
- The company reported second-quarter earnings of 22 cents per share after the bell on Wednesday, surpassing market expectations of 8 cents.
- Applovin’s stock price has nearly tripled so far this year.
The rise of AI has played a pivotal role in driving the success of several technology companies. Notably, Nvidia (NVDA) became the first chip maker to achieve a trillion-dollar valuation earlier this year. As a result, investors are now curious about which companies or sectors stand to benefit from advancements in machine learning.
Applovin’s profit this quarter is a stark contrast to the loss it incurred during the same period last year. In addition to exceeding revenue expectations, the company has provided strong guidance for the third quarter, projecting sales between $780 million and $800 million. This outperforms analysts’ anticipated figure of $741 million.
“Our impressive performance can be attributed primarily to the successful roll-out of our latest AI-based advertising engine,” stated Applovin in a letter to shareholders.