Could This Be the Most Overlooked Way to Profit From the AI Boom?
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Could This Be the Most Overlooked Way to Profit From the AI Boom?
"The company that has benefited the most from AI in the digital advertising space is AppLovin (NASDAQ: APP). Since introducing its Axon-2 AI-powered adtech platform in 2023, the company has seen both its revenue and profitability growth explode. It also is seeing no signs of this growth letting up, with revenue surging 68% last quarter to $1.41 billion and EBITDA (earnings before interest, taxes, depreciation, and amortization) soaring 79% to $1.16 billion."
"AppLovin has cracked the code in helping gaming apps attract new customers, which has been powering its growth. Between industry growth and continued improvements of its AI algorithm, it expects 20% to 30% revenue growth from the gaming sector over the long term. However, it also has other growth drivers. The company just launched a new self-serve platform, which could attract smaller gaming advertisers."
AppLovin's Axon-2 AI-powered adtech platform drove revenue and profitability surges, with revenue up 68% to $1.41 billion and EBITDA up 79% to $1.16 billion. AppLovin excels at helping gaming apps acquire users and forecasts 20–30% long-term revenue growth from gaming while expanding internationally and launching a self-serve platform to attract smaller advertisers. The company plans to move beyond gaming into web-based advertising such as e-commerce and intends to use AI-driven ad generation to create better, longer ads tailored to its platform. Meta and Pinterest are also leveraging AI to boost ad impressions, prices, and advertiser connections.
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