AppLovin just took a blowtorch to its mobile gaming unit, lit a cigar with the cash, and then tried to merge with TikTok like it’s not already neck-deep in a national security pissing contest. That’s where we are now. A glorified ad tech company with a history of peddling Sudoku knockoffs just told ByteDance to slide over and let Daddy drive LOL.
(Source: Giphy)
But first, let’s talk about AppLovin’s earnings. Short story, they crushed it. $1.67 per share, blew past the $1.45 consensus like it wasn’t even trying. Revenue also came in hot with $1.48 billion, versus $1.38 billion expected. You’d think they were a real company (Sup, Muddy Waters). However, eiven with the amount of backlash AppLovin has experienced, these numbers had the market throwing money at them like they were passing out crack behind the bleachers. Stock popped 15% in after-hours.
And then, they dropped this bomb: They sold their entire mobile gaming business to Tripledot Studios for $400 million in cash. That’s Tripledot, the studio best known for building the type of games your aunt plays on her iPad while waiting for her Xanax to kick in. AppLovin doesn’t care. They just wanted to get rid of the dead weight so they can go all-in on adtech and AI—a.k.a. Music to investors ears in 2025.
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Additionally, AppLovin also clinched a 20% stake in Tripledot. So they offload the overhead, keep the upside, and claim they are diversified. Smart. But still, none of this even scratches the surface of the delusion. Because while they’re cashing in on an earnings beat and dumping their legacy baggage, they’re also publicly begging to merge with TikTok. Not buy. Not acquire. Merge. As if AppLovin is some kind of white knight here to save the day. As if ByteDance is going to hand over the keys to a social media nuke just because some adtech frat boys from Palo Alto wrote a Medium post on the matter.
And it’s definitely not subtle. Simply put, AppLovin claims they want to run TikTok’s operations outside China, especially the U.S., because, get this, they think they’re the answer to America’s TikTok problem. CEO Adam Foroughi says they can “solve national security concerns” by taking control of the algorithm. Keep in mind, this is the same CEO that runs an ad placement company that feeds off geriatric boomers playing solitaire.
(Source: CNBC)
But alas, you can’t help but notice that despite the big confidence, and the high skepticism revolving around the company, their ad revenue is exploding, $1.16 billion this quarter, up from $678 million last year. That’s impressive. But it doesn't mean they’re qualified to run a global social media platform that’s currently being strangled by regulatory death threats on both sides of the Pacific.
And Foroughi knows it. He even called the TikTok deal a “long shot.” But apparently, it’s in the cards. And even though most adtech companies are just middlemen with good powerpoints, AppLovin is trying to prove its narrative is just unhinged enough to look like vision.
So yeah, they beat earnings, they dumped their games, and now they’re chasing TikTok like a horny teenager with a fake ID. What a time to be alive I tell ya. As of now, shares are up 14% on the day, but only time will tell if that hype stays alive throughout the day. Meaning, place your bets accordingly and stay safe out there, friends. Until next time…
P.S. Oh, I’m sorry, I didn’t know you liked getting rekt. Let’s face it, retail investors get the short end of the stick all day everyday. It’s the smart money’s world, and we are just living in it–only useful when it comes to liquidity purposes in the market. Meaning, if you’re as pissed off as I was when I found out Milli Vanilli was lip syncing the whole time, then it’s time to go from investing blind, to investing smart. Luckily for you, the key is right here as a Stocks.News premium member. Click here to see exactly how our premium members are printing while others quake in the face of today’s market chaos.
Stocks.News does not hold positions in companies mentioned in the article.
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