AppLovin shares jumped 31% in a single session after the advertising technology company reported record third-quarter results and raised its outlook, in one of the sharpest earnings reactions on Wall Street this year. The stock closed at $356.10 on Thursday, 5 November, adding roughly $28 billion in market value in one day.

The company reported its results after the market closed on Wednesday, 4 November. Revenue rose 55% from a year earlier to $2.18 billion, beating the $2.07 billion analysts had expected, TheStreet reported. Net income climbed 72% to $1.44 billion, and diluted earnings per share reached $4.30, above the consensus estimate of $4.03.

Profit margins widen as advertising grows

AppLovin's adjusted earnings before interest, tax, depreciation and amortisation reached $1.84 billion, up 59% from a year earlier, an 84% margin. Free cash flow was $1.42 billion. The company said its Axon advertising platform, which uses artificial intelligence to place adverts, continued to win business beyond its original base of mobile games.

The outlook impressed investors as much as the quarter itself. AppLovin guided fourth-quarter revenue to between $2.365 billion and $2.395 billion, comfortably above Wall Street's forecast of about $2.25 billion, and projected adjusted earnings of $1.995 billion to $2.025 billion for the period.

From worst performer to biggest winner

The scale of the move reflected how far the shares had fallen. AppLovin entered its earnings report as the worst-performing stock in the S&P 500 for 2026, down about 60% for the year, on fears that its growth was slowing, its expansion into e-commerce was stalling and a securities class action would expose problems with its AI models. Even after Thursday's surge, the shares remained down about 47% for the year and sat well below their 52-week high of $738.01.

The stock had already risen more than 20% in after-hours trading on Wednesday evening, and it printed an intraday high of $363.39 on Thursday before closing at $356.10, up 31.04% on the day. By the end of the week, the shares had gained about 71%, the strongest weekly performance in the index.

Analysts raise targets after the beat

Wall Street analysts moved quickly to raise their price targets. RBC Capital lifted its target to $520 from $500 and kept an Outperform rating, Morgan Stanley raised its target to $450 from $400 with an Overweight rating, and BTIG raised its target to $450 from $396 while keeping a Buy rating, according to reports of the research notes.

AppLovin also announced a $3.2 billion increase to its share repurchase authorisation, leaving $3.6 billion available at the end of October. The company bought back 4.1 million shares for $1.4 billion during the third quarter.

The result was a reminder that, in a week when technology stocks were being sold heavily on doubts about AI spending, a company that could show AI-driven revenue growth of 55% with an 84% profit margin still commanded a premium. This article is market news, not investment advice.