AppLovin: Why APP Stock Jumped 60%?

Core Insights - AppLovin's stock surged 64% due to strong earnings and significant revenue growth, alongside analyst upgrades and S&P 500 inclusion, despite an ongoing SEC investigation [2][4][7]. Financial Performance - AppLovin reported Q2 2025 EPS of $2.26, exceeding estimates by $0.21, with revenue increasing 77.1% year-over-year to $1.26 billion [7]. - The company experienced a 13% boost in net margin and a 29% increase in the P/E multiple, contributing to the stock price surge [4]. Strategic Developments - AppLovin launched the Axon ads manager on October 1, 2025, expanding into web, e-commerce, and connected TV, diversifying revenue streams beyond mobile gaming [7]. - The company completed the sale of its mobile gaming business to Tripledot Studios for $400 million on June 30, 2025 [7]. Market Reactions - Multiple analysts raised their price targets for AppLovin, with BofA increasing its target from $580 to $860 on October 1, 2025 [7]. - AppLovin was added to the S&P 500 in September 2025, which bolstered investor confidence [7]. Regulatory Concerns - An SEC investigation into AppLovin's data practices was launched on October 7, 2025, leading to a 19% drop in stock price [7].