After earnings were released, it surged 50%! Citi bets that the rally in "AI + digital advertising" leader AppLovin (APP.US) is not over, with $500 targeting new e-commerce space.

Zhitong Finance APP has learned that as the market re-examines the gap between AI capital expenditure and the actual realization of investment returns from data centers, AppLovin (APP.US), an AI application leader focused on "AI + digital advertising," is demonstrating the commercial value of AI applications through advertising conversion efficiency, profit, and cash flow. On November 5, the Philadelphia Semiconductor Index plunged 12.25%, yet AppLovin rose 31.04% against the trend after its earnings report: third-quarter revenue grew 55% year-over-year, net profit increased 72%, free cash flow reached approximately US$1.418 billion, and its new-generation advertising model drove a re-acceleration of its gaming business while also creating conditions for e-commerce clients to expand effective ad placements.