Why Applovin Stock Popped Today
Key Points
Its research arm published a bullish outlook on the global app marketplace.
This expanded last year and is set to do so again, according to the analysis.
Applovin (NASDAQ: APP) enjoyed a surge of investor interest on Wednesday, as one of its key subsidiaries published quite an encouraging report on developments in mobile apps. With that tailwind at its back, the adtech specialist's stock surged, and by the end of the day, Applovin's stock had risen by more than 7%.
Adjusting for continued growth
Adjust, Applovin's measurement and analytics subsidiary, published its annual Mobile App Trends report before market open that day. It found that worldwide installs of such software rose by 10% year over year in 2025. Meanwhile, sessions with such apps increased by 7%.
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The business unit is predicting more gains in the future, not least because it believes mobile device users will become increasingly multi-platform over the course of this year. In turn, this should increase demand for analytics and measurement products -- such as those in which Applovin specializes.
Adjust recommends that developers consider the full app ecosystem to take advantage of these opportunities. It quoted its director of marketing, Tiahn Wetzler, as saying that "Sustainable app growth will depend on capturing user journeys across web, app, and other connected environments. It's no longer sufficient to view users in device silos when we know that conversion is influenced by multiple touchpoints."
Positive signs
The Adjust report basically confirms what's been apparent for years -- the app universe is large, diverse, and expanding, so there's little doubt Applovin still has great potential within its confines. The only question is whether it can take advantage of this, and given recent indications -- such as the estimates-topping fourth quarter it posted last week -- I'd say it has a good shot.
Eric Volkman has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.