AppLovin Stock Soars on Earnings Beat, Gaming Unit Sale

Core Insights - AppLovin Corp's stock increased by 15.5% to $350.56 following impressive quarterly results and a significant business shift [1] - The company reported earnings of $1.67 per share, surpassing the consensus estimate of $1.45, with revenue reaching $1.48 billion, also exceeding expectations [1] - AppLovin plans to sell its mobile gaming business to Tripledot Studios for $800 million in cash [1] Analyst Reactions - At least five analysts have raised their price targets, with Morgan Stanley increasing its target to $420 from $350, the highest among them [2] - Options trading activity has surged, with over 47,000 calls and 35,000 puts traded, four times the average intraday volume [2] - New positions are being opened at the most active July 350 call [2] Stock Performance - Following the recent surge, AppLovin's stock is up 8.2% in 2025 and has a year-over-year increase of 373.1% [3] - The stock is on track for its third consecutive weekly gain and is trading above the $350 level, a significant area of chart resistance, for the first time since late March [3]