AppLovin late Wednesday beat Wall Street's targets for the second quarter and guided higher for sales in the current period. AppLovin stock fell in extended trading.
The app marketing software firm earned $2.39 a share on sales of $1.26 billion in the June-ended quarter. Analysts polled by FactSet had expected earnings of $1.96 a share on sales of $1.22 billion. On a year-over-year basis, AppLovin earnings jumped 169% while sales rose 17%.
For the third quarter, AppLovin expects sales of $1.33 billion. Wall Street was modeling sales of $1.31 billion.
In after-hours trading on the stock market today, AppLovin stock dropped more than 1% to 384.87. During the regular session Wednesday, AppLovin stock rose 3.3% to close at 390.57.
AppLovin Forming Fresh Pattern
AppLovin stock is in a consolidation pattern with a buy point of 428.99, according to IBD MarketSurge charts. The chart also could be interpreted as a cup base.
AppLovin's software platform enables mobile app developers to market, monetize and analyze their apps. The Palo Alto, Calif.-based company also works with streaming television services.
On July 1, AppLovin announced that it had completed the sale of its mobile gaming business to Tripledot Studios. AppLovin received $400 million in cash and a 20% equity stake in Tripledot. AppLovin divested its mobile gaming business, including 10 game studios and their mobile gaming franchises, to focus on its core marketing platform business.
Excluding the games business, AppLovin's sales rose 77% year over year in Q2.
AppLovin stock is on the IBD Tech Leaders list.
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