AppLovin shares resumed their historic rally on Thursday after the ad-tech company reported better-than-expected earnings for the second quarter.
The stock popped 12% and is now up 35% for the year after soaring more than eightfold in 2024. Wall Street has piled into the company due to its growth from artificial intelligence technology that's given advertisers more ways to target users in mobile games.
CEO Adam Foroughi suggested on the earnings call that another wave of growth is likely on the way due to the legal saga between Apple and Epic Games.
In April, a judge in Oakland found that Apple had violated the court's original order from a case that was originally decided in 2021, which forced the iPhone developer to make limited changes to its linking out policy under California law.
In June, Apple was dealt a blow in the U.S. Court of Appeals for the Ninth Circuit, as a panel of judges denied the company's emergency application to halt changes to its App Store that resulted from the legal battle.
Foroughi, who founded AppLovin in 2012 and took it public nine years later, was asked on Wednesday if gaming companies have changed the way they spend money to acquire users due to the Epic case. Foroughi said the company hasn't seen an impact yet, and that it will "take longer than people expect," with a big benefit coming within four to eight quarters.