AppLovin (NASDAQ:APP) popped Thursday after the company posted strong second-quarter results and optimistic third-quarter revenue guidance. The game developer said it expects $780 million to $800 million in revenue for the third quarter, exceeding the $741 million expected by analysts. AppLovin reported earnings of 22 cents per share for the second quarter, while analysts expected seven cents.
More good tidings: investment firm Bank of America noting that a "multi-year growth story" is starting to happen.
"Axon 2.0 has the potential to catalyze a multi-year growth story, whereby AppDiscovery penetrates non-gaming verticals, and Wurl (CTV inventory), takes off," analyst Omar Dessouky wrote in an investor note.
Dessouky pointed out that he believes guidance from management is still "cautious." He is expecting a higher step-up sequentially due to a full quarter of Axon 2.0 deployment, self-improvement as Axon collects data and engineering enhancements.
Dessouky added that while the risk of Apple (NASDAQ:AAPL) making a demand-side platform "looms distantly," he reiterated his buy rating on "positive risk-reward." Dessouky also upped his price target to $41 from $35 following the results.
AppLovin, its website says, “accelerates business growth with market-leading technologies. AppLovin’s end-to-end software solutions support profitable growth by optimizing monetization and by using powerful machine learning to make data-driven marketing decisions. AppLovin partners with businesses to deliver personalized experiences at a massive global scale.” AppLovin is headquartered in Palo Alto, California with several offices globally.
APP shares started Thursday raced higher $5.18, or 17%, to $34.60.
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