Chip Stock Investor Podcast AppLovin: Digital Ads are AI's Most Profitable Use Case | Q3 2025 Earnings
Nov 10, 2025
The discussion kicks off with AppLovin's impressive role in digital advertising and how it continues to harness AI for profitability. Regulatory concerns surrounding data privacy and the SEC probe are thoroughly examined. The hosts reveal a staggering $1.4B revenue surge and a remarkable 68% growth rate for Q3 2025. Exciting developments include AppLovin's push into e-commerce with a self-serve ads platform, designed to cater to small merchants. The conversation wraps up with insights on free cash flow performance and the company’s ambitious growth outlook.
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Digital Ads Are AI's Biggest Win
- Digital advertising remains the most profitable and practical use of AI in 2025.
- AI lets ad platforms convert incremental revenue into much higher profit margins through automation.
Regulatory Risk From Data Practices
- AppLovin faces a short-seller report and an alleged SEC probe into data and privacy practices.
- Despite regulatory risk, the hosts prefer letting the business prove itself through financial performance.
Axon On NVIDIA L4 Drives Efficiency
- AppLovin runs its Axon platform on NVIDIA L4 GPUs and partners with Google to scale ad automation.
- This infrastructure helps the company do more with less and drive efficiency gains.