By Angela Palumbo

AppLovin fourth-quarter earnings and revenue are expected to have jumped from last year, which could help push the surging stock even higher.

AppLovin is scheduled to report earnings after the stock market closes on Wednesday. Analysts surveyed by FactSet expect the company that helps app developers expand their audiences to post earnings of $1.25 a share on revenue of $1.26 billion.

In the same period last year, AppLovin reported earnings of 49 cents a share on revenue of $953 million.

"AppLovin is slowly gaining a huge share of the $15 billion ad spending inside mobile games, driving its recent outsized results," Wedbush analyst Michael Pachter wrote in a note on Monday. He raised his price target to $545 from $270 and maintained an Outperform rating on the stock.

AppLovin went public in 2021 with an initial public offering price of $80. Shares have skyrocketed since then. The stock is up 719% alone over the last 12 months at $384.75, which is its best 52-week gain on record, according to Dow Jones Market Data.

With a massive run in the stock price, AppLovin has a high bar to clear to keep investors excited. On top of looking for an earnings beat and strong first-quarter guidance, Wall Street will be listening for updates on the company's AI initiatives, such as Axon, which could help boost growth. Axon is AppLovin's AI powered ad tech software.

"We're in the early stages of AI software development, both within our company and in the broader industry," Chief Executive Officer Adam Foroughi said on the company's last earnings call. "We expect ongoing research advancements to continue driving our technology forward."

Write to Angela Palumbo at angela.palumbo@dowjones.com

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February 12, 2025 13:14 ET (18:14 GMT)

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