AppLovin Surges 6.6% as Q4 Sales Top $1.66B and Buy Rating Arrives
AppLovin shares surged 6.6% on February 25, tracking a 1.1% Nasdaq-100 rally despite an ongoing SEC probe into its data-collection practices and pivot plans after a failed TikTok deal. The stock retraced 33% from its $734 peak following Q4 sales of $1.66 billion, an 87% EPS jump, and a Buy upgrade.
1. Stock Performance and Market Drivers
AppLovin shares jumped 6.6% on February 25, mirroring a 1.1% rise in the Nasdaq-100 as broader tech sentiment powered its gains.
2. Regulatory Probe and Strategic Pivot
The SEC is investigating AppLovin’s data-collection practices following a whistleblower complaint, while the company shifts strategy after abandoning a TikTok acquisition bid to develop its own social platform.
3. Recent Selloff and Valuation Reset
Since peaking near $734 in December, the stock has retreated 33%, reflecting a 42% correction that triggered a valuation reset among investors.
4. Strong Q4 Results and Analyst Ratings
AppLovin reported Q4 2025 revenue of $1.66 billion (+21% YoY), adjusted EPS of $3.24 (+87% YoY) and an 84% EBITDA margin, prompting a rating upgrade from Hold to Buy.