AppLovin (APP) is likely to continue delivering double-digit revenue growth and more than 90% contribution margin ahead as its advertising business "continues to amaze," Wedbush said in a Thursday note.

The company is expected to grab about 2/3 share of in-game advertising, analysts led by Michael Pachter wrote, adding that it has also agreed to sell its apps business for $900 million to Tripledot Studios to focus solely on its advertising operations.

AppLovin's ad generates more than $150 in revenue, while the average peer ad revenue generation is about $80, the analysts added.

The company has "successfully arbitraged its mediation platform to identify gaps between what a publisher with ad inventory is willing to accept and what an advertiser is willing to spend, driving its take rate closer to 40% of spending on the platform," the analysts mentioned.

Wedbush maintained an outperform rating and a $620 price target on the company's stock.

AppLovin's stock was up 13% in recent Thursday trading.

Price: 342.98, Change: +39.52, Percent Change: +13.02