Why AppLovin Corporation (APP) Soared Last Week

We recently compiled a list of the Last Week’s Top 10 Stocks Post Double-Digit Gains. In this article, we are going to take a look at where AppLovin Corporation (NASDAQ:APP) stands against the other stocks.

The stock market may have registered losses on Friday, but remained firmer on a week-on-week basis, with the bellwether indices continuing to track further developments from the growing trade tensions globally.

On a weekly basis, the Dow Jones was up 0.5 percent, the S&P 500 grew 1.47 percent, while the tech-heavy Nasdaq increased 2.57 percent.

Meanwhile, ten companies mirrored broader market optimism, booking as much as double-digit gains in just the last five trading days.

To come up with the list, we considered only the stocks with at least $2 billion in market capitalization and $5 million in daily trading volume.

A close-up of a mobile device, showing an advertiser reaching out to a consumer via a software-based platform.

AppLovin Corporation (NASDAQ:APP)

AppLovin Corporation (NASDAQ:APP) saw its share prices jump by 35.77 percent week-on-week to end Friday’s trading at $510.13 apiece following an impressive earnings performance released last week.

In a statement, AppLovin Corporation (NASDAQ:APP) said net income last quarter expanded by 248 percent to $599 million from the $172 million registered in the same period a year earlier, as revenues grew 44 percent to $1.37 billion from $953 million year-on-year.

In full year 2024, net income soared 343 percent to $1.58 billion from $356 million year-on-year.

AppLovin Corporation (NASDAQ:APP) also expects revenues for the first quarter of the year to remain within the $1-billion level, and settle anywhere between $1.355 billion to $1.385 billion.

Analysts expect the company’s stock price to retreat in the next couple of days as investors book profits from the recent surge.

Overall APP ranks 6th on our list of last week’s top gainers. While we acknowledge the potential of APP as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than APP but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

READ NEXT: 20 Best AI Stocks To Buy Now and Complete List of 59 AI Companies Under $2 Billion in Market Cap.

Disclosure: None. This article is originally published at Insider Monkey.