AppLovin (APP) shares surged 31.04% on Thursday, Nov. 5, closing at $356.10 after the advertising technology company delivered better-than-expected quarterly results and issued a strong outlook for the rest of the year.
The stock gained $84.35 in a single session, as investors welcomed another strong quarter from a company whose AI-powered advertising technology has attracted significant attention on Wall Street.
AppLovin beats earnings estimates and expands share buybacks
AppLovin reported third-quarter earnings of $4.30 per share, above analysts’ consensus estimate of $4.03. Revenue reached $2.18 billion, beating expectations of $2.07 billion.
For the fourth quarter, the company expects revenue between $2.365 billion and $2.395 billion, compared with Wall Street’s forecast of $2.25 billion.
AppLovin also projected adjusted EBITDA of $1.995 billion to $2.025 billion.
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The company announced a $3.2 billion increase to its share repurchase authorization, bringing the total remaining authorization to $3.6 billion as of the end of October.
“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.
The results marked a sharp turnaround for a stock that had struggled throughout 2026.
AppLovin was one of the market’s biggest winners in 2024 and 2025, with shares surging about 713% and 108%, respectively, as investors bet on the growth of its AI-powered advertising platform, AXON.
But the momentum reversed in 2026. Even after Thursday’s 31% rally, AppLovin shares remained down about 47% year to date as of writing, according to Yahoo Finance data.
The company has faced questions about whether its advertising technology can continue driving rapid growth.
Wall Street raises AppLovin stock price targets after earnings
Several analysts raised their price target for AppLovin stock after earnings.
RBC Capital raised its price target on AppLovin to $520 from $500 and maintained an Outperform rating, The Fly reported.
The firm said AppLovin delivered a strong recovery, with revenue and adjusted EBITDA comfortably beating Wall Street estimates.
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RBC attributed the improvement partly to an advertising model update that had been delayed from the second quarter but contributed to third-quarter results.
The firm also highlighted AppLovin’s profitability. Despite higher spending on model training and computing resources, the company delivered stronger margins as infrastructure improvements and revenue growth more than offset those costs.
Morgan Stanley raised its price target to $450 from $400 and maintained an Overweight rating.
The firm said AppLovin’s strong third-quarter results “directly challenge concerns” about slowing growth, limited innovation and competitive pressure.
Morgan Stanley also pointed to a “major model breakthrough” in AppLovin’s core gaming advertising business as evidence of continued innovation.
Scotiabank analyst Nat Schindler lowered his price target to $450 from $515 while maintaining an Outperform rating.
Schindler said the debate around AppLovin has shifted from whether its AXON technology works to whether the company can repeat its recent gains. He believes that shift is more favorable for AppLovin.
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