AppLovin stock rose 2.7% following the company's fourth-quarter 2025 earnings report and first-quarter 2026 guidance. The company reported Q4 2025 revenue of $1,657.94 million and net income of $1,102.26 million, with Q1 2026 revenue guidance between $1,745 million and $1,775 million. AppLovin announced a strategic pivot toward an AI-powered advertising platform, divesting its Apps business and expanding its Axon AI engine into e-commerce and connected TV. The company is also exploring a new social network and is associated with unconfirmed OpenAI ad-monetization rumors. These developments generated investor interest in the ad platform strategy. However, the company faces ongoing SEC scrutiny, and software stocks broadly experienced weakness on the trading day amid concerns about AI's competitive threat.
Read full analysisAppLovin stock rose 2.7% following the company's fourth-quarter 2025 earnings report and first-quarter 2026 guidance. The company reported Q4 2025 revenue of $1,657.94 million and net income of $1,102.26 million, with Q1 2026 revenue guidance between $1,745 million and $1,775 million. AppLovin announced a strategic pivot toward an AI-powered advertising platform, divesting its Apps business and expanding its Axon AI engine into e-commerce and connected TV. The company is also exploring a new social network and is associated with unconfirmed OpenAI ad-monetization rumors. These developments generated investor interest in the ad platform strategy. However, the company faces ongoing SEC scrutiny, and software stocks broadly experienced weakness on the trading day amid concerns about AI's competitive threat.
AppLovin operates an AI-powered advertising platform that helps mobile app developers acquire users and monetize their apps, generating $1.658 billion in Q4 2025 revenue with an exceptional 84% adjusted EBITDA margin. The company recently announced plans to build its own social networking platform after an unsuccessful bid for TikTok's non-China business, while an active SEC investigation reported by Reuters adds regulatory uncertainty. Since its February 11 earnings report, the stock has become a volatility magnet with swings ranging from -19.7% to +13.2%, and today's modest rebound continues that pattern of outsized post-earnings oscillation.