AppLovin reported third-quarter results after Wednesday's close that topped forecasts across the board. Revenue rose 55% to $2.18 billion against a consensus of about $2.08 billion, earnings came in at $4.30 a share versus $4.04 expected, and net income jumped 72% to $1.44 billion. Adjusted EBITDA reached $1.84 billion, an 84% margin, and free cash flow was $1.4 billion. The company spent $1.4 billion buying back and withholding 4.1 million shares and raised its repurchase authorization by $3.2 billion, to $3.6 billion in total.

Then came Thursday. On a day the Nasdaq fell 5.5%, AppLovin shares rose 31% to close at $356.10, one of the biggest gains in the market. The trigger was the outlook as much as the quarter: fourth-quarter revenue guidance of $2.37 billion to $2.40 billion sits well above the roughly $2.25 billion analysts had pencilled in.

The read-through is about whether the AI-disruption fear was overdone, not whether the ad engine works. The stock had fallen about 65% this year by the end of October, the worst in the S&P 500, as investors worried about new rivals, a second-quarter shortfall the company blamed on the timing of model upgrades, and a securities class action whose allegations remain unproven. Consumer categories grew at triple-digit rates and gaming by nearly 50%, management is targeting margins in the low 80s, and even after Thursday the shares remain far below their 52-week high of $738.