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CANADA - 2025/08/11: In this photo illustration, the AppLovin Corporation (App Lovin) logo is seen displayed on a smartphone screen. (Photo Illustration by Thomas Fuller/SOPA Images/LightRocket via Getty Images) SOPA Images/LightRocket via Getty Images AppLovin (APP)’s stock surged 64%, fueled by solid earnings and a sharp revenue rise—but behind the headlines lie analyst upgrades, a bold expansion, the S&P 500 inclusion, and even an SEC probe. What sparked this whirlwind? Let’s dig into the forces reshaping the stock’s trajectory and, more importantly, our current assessment of AppLovin stock. APP Stock 3M Returns So, what is happening here? The stock price jumped 64%, driven by an 11% rise in revenue, a 13% boost in net margin, and a strong 29% lift in the P/E multiple. Let’s explore what’s behind these moves. Before we get into the details of events that led to the stock surge, here is what market wisdom says: Investing in a single stock can be risky, but there is a huge value to a broader diversified approach. If you seek an upside with less volatility than holding an individual stock, consider the High Quality Portfolio. It has comfortably outperformed its benchmark—a combination of the S&P 500, Russell, and S&P MidCap indexes—and has achieved returns exceeding 105% since its inception. Why is that? As a group, HQ Portfolio stocks provided better returns with less risk versus the benchmark index; less of a roller-coaster ride, as evident in HQ Portfolio performance metrics. Here Is Why AppLovin Stock Moved Q2 Earnings Beat: AppLovin's Q2 2025 EPS of $2.26 beat estimates by $0.21. Revenue increased 77.1% YoY to $1.26B. Axon Launch/Expansion: Launched Axon ads manager on Oct 1, 2025, expanding into web, e-commerce, and connected TV, diversifying its revenue streams beyond its traditional mobile gaming focus. Analyst Upgrades: Multiple analysts raised price targets, BofA to $860 from $580 on Oct 1, 2025. SEC Investigation: SEC launched a probe into data practices on Oct 7, 2025; stock fell 19%. Gaming Business Sale: Completed sale of mobile gaming business to Tripledot Studios for $400M on June 30, 2025. S&P 500 inclusion: In September 2025, AppLovin was added to the S&P 500, a move that helped bolster investor confidence. Our Current Assessment of APP Stock MORE FOR YOU Opinion: We currently find APP stock attractive but volatile. Why so? Have a look at the full story. Read Buy or Sell APP Stock to see what drives our current opinion. Risk: That said, APP isn’t immune to sharp drops. During the Inflation Shock, it plunged about 92%, showing serious vulnerability despite strong fundamentals. Even the best companies can face steep losses when the market takes a hit. This kind of downside reminds us that no stock is totally safe, especially during extreme sell-offs. Risk is always there, no matter how bullish the outlook. Picking winners consistently is not an easy task – especially given the volatility associated with a single stock. Instead, consider the Trefis Reinforced Value (RV) Portfolio, which has outperformed its all-cap stocks benchmark (combination of the S&P 500, S&P mid-cap, and Russell 2000 benchmark indices) to produce strong returns for investors. Why is that? The quarterly rebalanced mix of large-, mid-, and small-cap RV Portfolio stocks provided a responsive way to make the most of upbeat market conditions while limiting losses when markets head south, as detailed in RV Portfolio performance metrics. Editorial StandardsReprints & Permissions
