AppLovin (NASDAQ: APP) reported strong Q3 earnings, with revenue up 68% to $1.41 billion, beating estimates. Earnings per share grew 96% to $2.45, exceeding expectations. The company expects Q4 revenue of $1.585 billion, with an adjusted EBITDA margin of 82-83%. Despite a smaller EPS beat, shares only gained less than 1%.

AppLovin’s self-service platform is seeing exponential spending growth, with a 50% increase weekly among advertisers. The company believes this will help maintain growth rates with limited impact on margins. The expansion into e-commerce advertising aims to improve algorithm effectiveness and increase ad diversity for better targeting and revenue generation.

Analysts raised price targets for AppLovin following its strong earnings report. The MarketBeat consensus price target is just under $626, but analysts see potential for a 22% upside with an average target of $759. The stock trades at a premium P/E ratio but continues to perform well with growth catalysts in 2026.

Read more at Nasdaq: Analysts Keep Raving Over AppLovin: Targets Rise Post-Earnings