During the third quarter, Benjamin Edwards Inc. increased its stake in AppLovin by 21.5%, acquiring an additional 802 shares to hold 4,530 shares valued at approximately $3.25 million. Other major investors also expanded positions: Norges Bank initiated a new stake worth roughly $951.5 million in Q2, National Pension Service boosted its holding by 82.2% to 790,271 shares, Voya Investment Management lifted its position by 235.5% to 496,560 shares, and Canada Pension Plan Investment Board grew its ownership by 204.8% to 425,622 shares. Overall, institutional investors now account for 41.85% of AppLovin’s shares, signaling broad confidence in the company’s growth trajectory.

In the quarter ended November 5, AppLovin reported earnings per share of $2.45, beating consensus estimates by $0.11, while revenue rose 68.2% year-over-year to $1.41 billion, topping analyst forecasts by $70 million. The company delivered a net margin of 51.27% and a return on equity of 258.49%, underscoring strong operational leverage in its adtech business. Year-to-date revenue through three quarters reached $3.82 billion, up 72%, and GAAP net income jumped 128% to $2.23 billion, reflecting continued scalability of the Axon AI advertising platform.

In a landmark transaction, AppLovin sold its mobile gaming division to Tripledot Studios for $400 million in cash plus a 20% equity stake, transforming the company into a pure-play adtech provider. Management highlighted that the divestiture accelerates revenue growth and simplifies the investment thesis, as advertising solutions now account for over 90% of overall revenues. The move also frees up capital for expansion into new verticals—such as e-commerce—and for further development of AI-driven marketing tools.

Between September and December, five major brokerages raised their price targets on AppLovin shares and maintained positive ratings: Jefferies upgraded to Buy, Bank of America to Buy, Scotiabank to Outperform, Morgan Stanley to Overweight, and JPMorgan to Neutral. The consensus rating across 24 analysts stands at Moderate Buy, with an average target implying double-digit upside. Looking ahead, management projects full-year EPS of 6.87 and anticipates continued ad market strength, further geographic expansion in Asia, and additional product launches to sustain momentum into 2026.