AppLovin’s post-earnings surge drives its annual gain to an impressive 1,000%, with Wall Street remaining optimistic.

AppLovin shares jumped 30% on Thursday after the company reported better-than-expected fourth-quarter earnings, causing several analysts to raise their price targets as the stock crossed the $500 mark for the first time.

During its earnings call, AppLovin announced it would sell its app business to focus on expanding its AI-powered Axon advertising software into new areas such as fintech, insurance, and automotive.

Analysts at Wolfe Research praised the move, saying the company’s financials “become more robust at a time when its growth outlook is improving,” while raising their price target from $490 to $550. Oppenheimer analysts reiterated this optimism, raising their target to $560 from $380, noting that selling its game development and publishing units would make it “easier for investors to justify AppLovin’s rising valuation multiple.”

Wall Street remains bullish on AppLovin, with 77% of analysts rating the stock a buy or outperform, according to CNBC. Notably, there are no sell ratings for the company.

For the fourth quarter, AppLovin smashed expectations, reporting earnings of $1.73 per share on $1.37 billion in revenue, while analysts estimated $1.24 per share on $1.26 billion. Net income tripled to $599.2 million from $172.3 million a year ago, while revenue grew 43%.

AppLovin’s improvements to the AXON model and expansion into new categories helped fuel this growth.

The company was the best-performing U.S. tech stock in 2024, with shares rising more than 700%, outpacing major AI players. Over the past 12 months, AppLovin’s gains exceeded 1,000%, keeping pace with Palantir as the top performer so far this year.

Looking ahead, AppLovin expects first-quarter revenue between $1.36 billion and $1.39 billion, well above analysts’ estimates of $1.32 billion, with more than $1 billion of that revenue coming from its advertising segment, as it continues to strengthen its AI model.