Revenue surged by 53% but still faced a downturn! AppLovin (APP.US) saw its stock plummet over 25% in after-hours trading, simply because its AI model upgrade was just a step behind.

According to Zhitong Finance APP, after the U.S. stock market closed on Wednesday, mobile advertising giant AppLovin (APP.US) posted a report showing a significant surge in profits, but faced a harsh judgment from investors. The company's stock price plummeted by over 25% in after-hours trading, as its second-quarter revenue slightly fell short of market expectations, and its guidance for the next quarter was not particularly upliftingdespite its net profit for the quarter soaring by 55% year-on-year and its adjusted EBITDA margin remaining at a rare 84%.