AppLovin Crushes Q4 Estimates, Stock Tanks Anyway
Ad tech giant posts 66% revenue growth and beats expectations, but investors hit the sell button after hours.
AppLovin just dropped a killer earnings report. The ad tech company pulled in $1.66 billion in Q4 revenue, up 66% year-over-year and beating Wall Street's $1.61 billion estimate.
The forward guidance looked strong too. AppLovin projected Q1 revenue and adjusted EBITDA above analyst expectations.
So naturally, the stock cratered.
APP shares dropped more than 6% in after-hours trading. Because nothing says "thank you for exceeding expectations" quite like a sell-off.
This isn't the first time AppLovin investors have reacted counterintuitively to positive news. The company has been on a wild ride, with its stock becoming a favorite target for profit-taking despite solid fundamentals.
The ad tech space remains volatile, and apparently beating estimates just isn't enough anymore.