Evaluating AppLovin Corporation: A Top Contender Among Billionaire-Endorsed Growth Stocks
At Extreme Investor Network, we’re always on the lookout for long-term growth opportunities, particularly those backed by the savvy of billionaire investors. Recently, we compiled a list of the 10 Best Long Term Growth Stocks to Buy According to Billionaires. Today, we’ll delve into where AppLovin Corporation (NASDAQ: APP) stands among these elite stocks and what makes it a noteworthy consideration for your investment portfolio.
Current Market Landscape
The recent economic climate has introduced unprecedented levels of uncertainty and volatility. According to Barclays, various executive orders from the US administration have led to a reformative atmosphere surrounding global trade, immigration, and geopolitics. This has diminished consumer confidence significantly, impacting personal spending and leading to declining GDP forecasts. The overall sentiment is one of caution, as higher levels of uncertainty typically come at a cost to global growth.
S&P Global expresses apprehension about the trajectory of the US economy, citing a potential decline in growth rates due to fluctuating policies. While a full-year growth projection of 1.9% holds steady for 2025, a dip to 1.6% by Q4 is anticipated, along with rising unemployment rates inching up to 4.6% by mid-2026. Over the same period, inflation rates are expected to hover around 3.0%, influenced by tariffs and other economic factors. Such conditions necessitate a vigilant approach to investing, particularly in growth stocks.
AppLovin’s Market Position
Amid this backdrop, AppLovin Corporation showcases a promising trajectory marked by an impressive 36.4% growth rate over the past five years. Currently, 17 billionaires have vested interests in AppLovin, supported by 95 hedge funds—a testament to its credibility among seasoned investors.
The company is primarily engaged in creating a software platform aimed at enhancing advertising solutions for mobile applications. Notably, their recent interest in acquiring TikTok’s assets outside of China adds a new dimension to their growth narrative. Analysts at Citi have set a buy rating on AppLovin, predicting a price target of $600 per share should the acquisition materialize. While the talks remain preliminary, the potential for significant strategic advantages could catalyze growth.
The integration of TikTok not only opens new avenues in non-gaming advertising but also grants access to invaluable data that could refine AppLovin’s AI capabilities, specifically its proprietary machine learning model, AXON. Such advancements could alleviate prevailing discounts in the AdTech sector, enhancing valuation multiples significantly.
Financial Expectations
For Q1 2025, AppLovin anticipates advertising revenues between $1.03 billion and $1.05 billion, with total revenues expected to range from $1.355 billion to $1.385 billion. Adjusted EBITDA is estimated to fall within the range of $855 million to $885 million. This performance will be pivotal as investors scrutinize the company’s ability to navigate a complex and evolving advertising landscape.
Insights from Investment Firms
Investment management firm Sands Capital noted in their Q4 2024 investor letter that AppLovin has solidified its place as a prominent entity within mobile advertising for game developers. This firm highlighted the company’s expertise in optimizing advertising performance through cutting-edge solutions. With the launch of the AXON 2.0 AI model, AppLovin is set to tap into the e-commerce sector, expanding beyond its initial gaming focus. This diversification could unleash considerable future growth, as performance advertising remains a lucrative domain.
Conclusion: Where Does AppLovin Rank?
In our assessment, AppLovin Corporation ranks an impressive 3rd on our list of best long-term growth stocks favored by billionaires. While it shows substantial promise, discerning investors might also consider other stocks that offer deeper value, particularly within the burgeoning AI sector. We believe certain undervalued AI stocks could outperform not only AppLovin but also the broader market, especially when considering their potential for exponential growth.
For those intrigued by the world of AI investments, we have uncovered some deeply undervalued options that trade at less than five times their earnings and have shown an upward trajectory since early 2025, even as more popular AI stocks struggled. For a detailed analysis, check out our exclusive report on the cheapest AI stock that we foresee as a game-changer.
Make sure to explore our detailed guides and analyses on stocks poised for growth, including our lists of the 20 Best AI Stocks to Buy Now and the 30 Best Stocks to Buy Now According to Billionaires. Stay informed, stay invested, and leverage insights that will help you navigate the markets with confidence!