Why AppLovin Stock Was Gaining Today
Meta's revenue grew 22% in the second quarter, reflecting strong ad demand.
That and Microsoft's strong quarter could bode well for AppLovin, as the high-growth stock is set to report Q2 earnings next week.
Analysts are expecting earnings per share to double to $2.32.
10 stocks we like better than AppLovin ›
Shares of AppLovin (NASDAQ: APP), the fast-growing adtech company, were soaring today even as there was no news out on the company. Instead, the stock seemed to benefit from a wave of bullish sentiment for artificial intelligence (AI) and digital advertising stocks after strong reports from both Meta Platforms and Microsoft last night.
As a result, AppLovin stock was up 8.2% as of 12:53 p.m. ET, while those two big tech stocks gained as well.
AppLovin rides Meta's coattails
Strong results from Meta in particular seemed to benefit AppLovin, as Meta's report showed off healthy demand in the digital advertising market.
Revenue jumped 22% to $47.5 billion, and advertising made up 98% of its revenue, showing strong demand for ads on Facebook and Instagram.
Meta credited AI improvements for driving both growth in ad impressions and an increase in the price per ad, reflecting increased demand and ROI. That trend, along with Microsoft's strong quarterly numbers, set off a wave of bullishness for stocks like AppLovin, which is high-priced and high-growth and offers exposure to both adtech and AI.
In fact, AppLovin may be ahead of the curve in AI-driven advertising, as its AI-powered recommendation engine, Axon, has been a key source of growth for the company recently.
What's next for AppLovin?
As an expensive, high-growth stock, AppLovin tends to be volatile, and today's gains reflect an improved perception of its future growth ahead of its own earnings report on Aug. 6.
Investors are expecting 13% revenue growth to $1.22 billion in the quarter, though that includes the sale of its mobile apps business. Excluding that, organic growth will be much stronger. On the bottom line, analysts expect earnings per share to essentially double to $2.32, a better reflection of the underlying growth in the business.
The stock has the potential to pop again if it can beat those estimates.
Do the experts think AppLovin is a buy right now?
The Motley Fool's expert analyst team, drawing on years of investing experience and deep analysis of thousands of stocks, leverages our proprietary Moneyball AI investing database to uncover top opportunities. They've just revealed their to buy now — did AppLovin make the list?
When our Stock Advisor analyst team has a stock recommendation, it can pay to listen. After all, Stock Advisor's total average return is up 1,049% vs. just 182% for the S&P — that is beating the market by 867.25%!*
Imagine if you were a Stock Advisor member when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $638,629!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,098,838!*
The 10 stocks that made the cut could produce monster returns in the coming years. Don't miss out on the latest top 10 list, available when you join Stock Advisor.
See the 10 stocks »
*Stock Advisor returns as of July 29, 2025
Jeremy Bowman has positions in AppLovin and Meta Platforms. The Motley Fool has positions in and recommends AppLovin, Meta Platforms, and Microsoft. The Motley Fool recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy.
Why AppLovin Stock Was Gaining Today was originally published by The Motley Fool
擷取數據時發生錯誤
登入存取你的投資組合
擷取數據時發生錯誤
擷取數據時發生錯誤
擷取數據時發生錯誤
擷取數據時發生錯誤

Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
4 minutes ago
- Yahoo
Archer-Daniels-Midland posts drop in second-quarter profit
(Reuters) -Archer-Daniels-Midland posted a fall in second-quarter profit on Tuesday, hurt by weakness in oilseed crush margins and weak performance in its grain origination and crushing business. The results come as the U.S.-based grain merchant braces for an impact from President Donald Trump's policies as well as plans to impose sweeping tariffs on most imports. Trade concerns stoked by tariff fears have also disrupted trade flows and created headwinds for agribusinesses such as ADM. Profit from Ag Services & Oilseeds, the company's largest segment, slumped 7% to $113 million in the reported quarter driven by lower margins, primarily due to lower vegetable oil demand arising out of biofuel and trade policy uncertainty. The division houses the company's global crop trading, transportation and storage, and oilseed processing operations. The Chicago-based company reported net earnings of $219 million, or 45 cents per share, for the quarter ended June 30, down from $486 million, or 98 cents per share, a year ago. Error while retrieving data Sign in to access your portfolio Error while retrieving data Error while retrieving data Error while retrieving data Error while retrieving data
Yahoo
4 minutes ago
- Yahoo
Here's Why Starbucks (SBUX) Retreated in Q2
RiverPark Advisors, an investment advisory firm and sponsor of the RiverPark family of mutual funds, released its 'RiverPark Large Growth Fund' Q2 2025 investor letter. A copy of the letter can be downloaded here. U.S. equity markets surged in the second quarter, with the S&P 500 Total Return Index rising 10.94% and the Russell 1000 Growth Index returning 17.84%. The fund also surged in the quarter and returned 15.01%. Continued enthusiasm for artificial intelligence, better-than-expected earnings in several large-cap growth sectors, and improving macroeconomic conditions lifted the markets in the quarter. Growth-focused stocks took the lead once more, with the strongest performance coming from sectors like technology, communication services, and certain areas of consumer discretionary. In addition, please check the fund's top five holdings to know its best picks in 2025. In its second-quarter 2025 investor letter, RiverPark Large Growth Fund highlighted stocks such as Starbucks Corporation (NASDAQ:SBUX). Based in Seattle, Washington, Starbucks Corporation (NASDAQ:SBUX) engages in the roasting, marketing, and retail of coffee globally. The one-month return of Starbucks Corporation (NASDAQ:SBUX) was -5.44%, and its shares gained 19.12% of their value over the last 52 weeks. On August 4, 2025, Starbucks Corporation (NASDAQ:SBUX) stock closed at $89.78 per share, with a market capitalization of $102.053 billion. RiverPark Large Growth Fund stated the following regarding Starbucks Corporation (NASDAQ:SBUX) in its second quarter 2025 investor letter: "Starbucks Corporation (NASDAQ:SBUX): SBUX shares declined during Q2 following disappointing earnings in late April. Global same-store sales declined 4%, driven by a 6% drop in North America and flat results in international markets. Traffic trends turned negative, and operating margins compressed to 11.6%, down from 18% a year earlier. Management cited macro headwinds, competitive pressure, and weaker-than-expected loyalty engagement. A close-up of a freshly roasted coffee bean, accompanied by a vintage aluminum scoop. Starbucks Corporation (NASDAQ:SBUX) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 70 hedge fund portfolios held Starbucks Corporation (NASDAQ:SBUX) at the end of the first quarter, compared to 84 in the previous quarter. In the third quarter of fiscal 2025, Starbucks Corporation (NASDAQ:SBUX) recorded a revenue of $9.5 billion, marking a 4% increase compared to the previous year. While we acknowledge the potential of Starbucks Corporation (NASDAQ:SBUX) as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. In another article, we covered Starbucks Corporation (NASDAQ:SBUX) and shared the list of stocks Jim Cramer shared his views on. In addition, please check out our hedge fund investor letters Q2 2025 page for more investor letters from hedge funds and other leading investors. READ NEXT: The Best and Worst Dow Stocks for the Next 12 Months and 10 Unstoppable Stocks That Could Double Your Money. Disclosure: None. This article is originally published at Insider Monkey.
Yahoo
4 minutes ago
- Yahoo
Leidos raises full-year profit forecast on robust demand for weapons
(Reuters) -Defense contractor Leidos Holdings raised its full-year adjusted profit forecast on Tuesday, as demand for its technical services and munitions remains robust amid simmering geopolitical tensions. Shares of the company were up 4% in premarket in trading. Rising tensions around the world in the wake of a protracted Russia-Ukraine war and tensions in the Middle East have boosted the market for arms, benefiting defense contractors. The company has followed peer Northrop Grumman in lifting its 2025 profit forecast. Leidos now expects its annual adjusted profit at between $11.15 and $11.45 per share, compared with its prior forecast of $10.35 to $10.75. However, the Reston, Virginia-based company trimmed its full-year revenue forecast range and now expects it to be between $17 billion and $17.25 billion, from $16.9 billion and $17.3 billion previously. Leidos provides technology services to government agencies as well as commercial clients and is also a maker of drones and aerial defense systems. It also provides services in the areas of health, environmental sciences and transportation. It posted a second-quarter adjusted profit of $3.21 per share. Analysts on average had anticipated a quarterly profit of $2.66 per share, according to data compiled by LSEG. Its revenue rose about 3% to $4.25 billion, edging past estimates of $4.24 billion.