Zhitong Finance App learned that after the US stock market on Wednesday, mobile advertising giant AppLovin (APP.US) handed over a report card showing a sharp increase in profits, but faced a cold judgment from investors. The company's stock price plummeted more than 25% in after-hours trading because its second-quarter revenue was slightly below market expectations and the guidance given for the next quarter was not encouraging enough — even though its net profit for the quarter surged 55% year over year, the adjusted EBITDA margin remained around a rare 84%.

Zhitong Finance App learned that after the US stock market on Wednesday, mobile advertising giant AppLovin (APP.US) handed over a report card showing a sharp increase in profits, but faced a cold judgment from investors. The company's stock price plummeted more than 25% in after-hours trading because its second-quarter revenue was slightly below market expectations and the guidance given for the next quarter was not encouraging enough — even though its net profit for the quarter surged 55% year over year, the adjusted EBITDA margin remained around a rare 84%.