Applovin shares experienced a significant rally this week, climbing 6% on Monday alone as details emerged about the company’s groundbreaking new self-service advertising platform. The launch of “Axon Ads Manager” has generated substantial enthusiasm among Wall Street analysts, who see the platform as a vehicle for expanding Applovin’s reach well beyond its core mobile gaming business.
Financial Performance Sets Stage
The platform introduction builds upon an already impressive growth trajectory. Applovin recently delivered a standout performance in the third quarter, achieving the remarkable distinction of being the top performer in the entire S&P 500 index with a 104% gain. This exceptional showing followed the company’s inclusion in the benchmark index during September.
Underpinning this market success are robust financial fundamentals:
• Second Quarter Revenue: $1.26 billion (representing 77% year-over-year growth)
• Adjusted EBITDA: $1.02 billion (nearly doubling from previous periods)
• EBITDA Margin: An impressive 81%
The company’s strategic shift toward high-margin AI advertising technology became evident with the divestiture of its gaming development division. This move allows Applovin to concentrate resources on its core advertising technology business.
Should investors sell immediately? Or is it worth buying Applovin?
Axon Ads Manager: Expanding Market Access
The newly launched platform represents a significant evolution in Applovin’s service offering. For the first time, advertisers can manage complete campaigns independently without requiring direct involvement from Applovin personnel. This self-service approach particularly benefits small and medium-sized businesses, enabling them to directly set advertising budgets and select target audiences.
Market analysts have responded positively to this development. Morgan Stanley reaffirmed its “Overweight” rating on Applovin shares while raising profit projections for the fourth quarter of 2025. Simultaneously, Phillip Securities initiated coverage with an “Accumulate” recommendation.
Future Outlook and Key Milestones
The coming weeks will prove crucial for assessing market adoption of the new platform. Applovin has provided third-quarter revenue guidance ranging between $1.32 billion and $1.34 billion, while maintaining expectations for an 81% EBITDA margin.
Investors are closely watching the calendar for November 5, when the company is scheduled to release its third-quarter financial results. This date represents the next significant opportunity to evaluate whether the new advertising platform is gaining traction in the broader digital advertising market beyond mobile gaming.
Ad
Applovin Stock: Buy or Sell?! New Applovin Analysis from February 7 delivers the answer:
The latest Applovin figures speak for themselves: Urgent action needed for Applovin investors. Is it worth buying or should you sell? Find out what to do now in the current free analysis from February 7.
Applovin: Buy or sell? Read more here...
