Why AppLovin Stock Is Up After Earnings
Portfolio Pulse from Erica Kollmann
AppLovin Corporation (NASDAQ:APP) shares surged after reporting Q4 earnings that exceeded expectations and announcing a $1.25 billion increase in its share repurchase program. Earnings per share were 49 cents, surpassing the consensus estimate of 36 cents. Quarterly sales reached $953.26 million, beating estimates and marking a 35.73% year-over-year increase. Software Platform revenue now represents 60% of total revenue. Wedbush analyst Nick McKay upgraded the price target to $67. The stock's trading volume significantly increased, with shares up 25% at $58.65.
February 15, 2024 | 7:25 pm
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POSITIVE IMPACT
AppLovin's Q4 earnings exceeded expectations with a significant increase in sales and an expanded share repurchase program, leading to a sharp rise in stock price.
The positive earnings report and the increase in the share repurchase program signal strong financial health and confidence from management, likely leading to increased investor confidence and demand for APP shares. The significant outperformance in both earnings per share and sales, coupled with the upgrade in price target by Wedbush analyst Nick McKay, further bolster the bullish outlook for the stock in the short term.
CONFIDENCE 90
IMPORTANCE 95
RELEVANCE 100