This Year's Worst-Performing S&P 500 Stock is Finally Seeing Some Major Relief

Dow Jones11-05 06:46

AppLovin's stock is popping after 'clearly positive' earnings results

AppLovin's forecast impressed investors.

No stock in the S&P 500 has performed worse than AppLovin this year, but things were looking up on Wednesday.

Shares of the digital-marketing company, which makes technology for mobile apps, were surging nearly 20% in Wednesday's extended trading. AppLovin (APP) delivered "clearly positive results," said Evercore ISI analyst Robert Coolbrith.

AppLovin posted third-quarter revenue of $2.18 billion, a 55% increase compared to the same time in 2025, and above the $2.07 billion FactSet consensus view. AppLovin also posted earnings per share of $4.30, above the $4.03 a share forecast by analysts, and up 75% from a year before.

The stock's after-hours gains come on top of a 10% rally in Wednesday's regular session. Still, shares were down 60% on the year heading into the report, to rank as the worst 2026 performer within the S&P 500.

In a statement, AppLovin said that "given continued confidence" in its future, its board of directors agreed to authorize up to $3.2 billion more in stock buybacks, lifting the total amount under its authorization to $3.6 billion. In the third quarter, it repurchased $1.4 billion worth of shares.

AppLovin also forecast fourth-quarter revenue of as much as $2.39 billion, above expectations for $2.25 billion, according to FactSet.

However, ahead of the report, Raymond James analyst Andrew Marok wrote that "expectations are unsettled right now and it will likely take more than one good quarter to reassure investors."

The company's previous earnings report rattled investors, sending shares off 20% in the session following the results.

-William Gavin

 

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