AppLovin stock pops 11%. CEO sees benefits from Apple-Epic fallout

Applovin Stocks continued the historical rally on Thursday after informing that the advertising technology company was better than expected earning For the second quarter.

The stock exploded by 11% and increased by 34% for the year after increasing more than eight floors in 2024. Wall Street entered the company because of its growth from artificial intelligence technology, which gives advertisers more way to target users in mobile games.

CEO Adam Foroughi said about the gains that there was another wave of growth on the road due to the legal epic. Apple And epic games.

In April, a judge in Oakland found Apple’s original order of the court initially violated it from a case. decided In 2021, forcing the iPhone developer to make limited changes in the association policy under the California law.

In June, Apple received a blow to the US Appeal Court for the ninth circuit, because the judges’ panel refused to stop the company’s emergency application to stop the changes caused by the legal war in the application store.

Foroughi, who founded Applovin in 2012 and opened to the public nine years later, was asked whether the game companies have changed their money to spend their money to obtain users due to epic situation. Foroughi said that the company has not yet seen an impact, and with a great benefit within four to eight quarters, “people will take longer than expected”.

The idea is that developers no longer have to pay 15% of Apple, because purchases can be paid outside the App Store, so they will want to spend more for advertising to find new users. This enters Applovin’s market.

“As an advertising platform for us, you will start to see us very quickly in terms of benefit,” Foroughi said in a call with analysts. He said. “When very large leaders begin to do so, you will really start to get smaller and medium -sized ones.”

For now, when it comes to the present day, the results seem good enough for investors. The net revenue doubled from $ 310 million or a year ago from 89 cents to $ 819.5 million or $ 2.39. According to LSEG, earnings exceeded analysts’ estimates of $ 2.03.

Income increased by 77% to $ 1.26 billion, and this growth figure comes from the game business it sold in June last year. Analysts waited for $ 1.27 billion.

Although Applovin’s shares are a Wall Street lover in recent years, more than one company does not believe in the story and is open to the public in its criticism.

In March, a third short short -selling company expressed its concerns about the company’s digital advertising technology and claimed that the App Store rules. This report from Muddy Waters Research said that Applovin’s advertising tactics were “systematically” systematically “by removing the registered identities from meta, snap, tiktok, reddit, Google and others.

A month ago, Bulanık Panda Research and Culper Research criticized Applovin’s Axon software that enabled earnings and stocks increased. A

The first short reports were published, foroughi is a Blog postDefending the technology and applications of his company and aiming to profit from Applovin’s decline calls them “treacherous short sellers” that make false and misleading claims to undermine our success and take our stock down for their own financial gains.

The analysts in Wedbush still recommend that you buy shares, and after the latest results, the application of the Apple-Pic case would probably be “a tail wind for Applovin next year”.

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