AppLovin Corp has been one of the biggest AI stock success stories of the last two years. When we first featured it on our AI stock watchlist in September 2023, it was trading in the $30s. By April 2024, it became our number-one AI swing trade pick, with IRIS, StocksToTrade’s proprietary AI stock evaluator, flagging it as a top opportunity when it was in the $60-$70 range.
Now, in February 2025, APP is trading just above $510 after another strong earnings beat. Traders who caught this move early have seen a 1,000%* gain—not bad for a stock that some ignored because it wasn’t a household AI name like Nvidia or Palantir.
(*Always remember—past performance does not indicate future results.)
At this point, IRIS is advising caution. The stock is on a strong breakout, but with the recent surge, a pullback could be in play. Traders need to approach it with a plan.
See what stocks our AI trading tool IRIS is spotlighting now!
Why AppLovin Stock Just Exploded
AppLovin crushed expectations in its latest earnings report, sending the stock soaring to an all-time high of $525 before it settled above the $500 mark ahead of the three-day President’s Day weekend.
Key earnings highlights
- Earnings per share of $1.73, up 253% year-over-year, beating estimates of $1.25
- Revenue of $1.37 billion, up 44% from last year
- First-quarter 2025 revenue forecast of $1.37 billion, topping expectations of $1.32 billion
Wall Street responded quickly, with nine major firms raising their price targets. Wedbush Securities now has a $620 target, up from $545.
These guys are getting caught up in the hype too—they weren’t forecasting $600 targets six months ago, when APP was trading under $100.
What’s Driving AppLovin’s Growth?
AppLovin’s AI-powered advertising platform has been a massive revenue driver. Its AXON AI system helps businesses optimize ad revenue through real-time competitive auctions, and the numbers prove it’s working.
- The company’s AI-driven software business grew 73% year-over-year in Q4
- AppLovin is selling its gaming unit for $900 million, transitioning into a pure advertising platform
- The company is expanding into e-commerce and connected TV advertising, increasing its total addressable market
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This isn’t just another software company—it’s a market leader in AI-driven advertising.
Should Traders Buy APP Stock Now?
At just over $510 per share, traders have to decide whether the stock still has room to run or if a pullback is coming.
Here’s what to consider:
- The stock has strong bullish momentum, with a 30% post-earnings spike showing continued demand
- IRIS highlights key support around $400, which could be a solid dip-buying opportunity if the stock pulls back
- The valuation is getting stretched, and high-flying stocks can be volatile—big moves in either direction are possible
While IRIS nailed the call back in April, it’s now signaling a higher risk level, advising traders to wait for confirmation before jumping in. That doesn’t mean the move is over—it just means the easy part of the trade already happened.
Final Thoughts
AppLovin has been one of the strongest AI plays in the market, and traders who reacted to price action instead of overanalyzing have been rewarded in a big way.
But this is where discipline matters. Like I always say—the best time to start trading was 20 years ago, the second-best time is today.
If APP fits your strategy, trade what’s in front of you, not what you wish had happened. Stay patient, manage risk, and let the chart tell you what to do next.
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