From Yahoo Finance: 2025-05-05 11:16:00

In a recent article, we compared AppLovin Corporation (NASDAQ:APP) with other high-growth stocks that hedge funds are buying. The global economy in 2025 faces modest growth projections, with US GDP at 2%, Eurozone at 0.9%, and China at 4.2%. Rising productivity from AI offers long-term promise, but inflation and market uncertainty persist. Policy shifts towards fiscal measures may impact investments. Equities, particularly US stocks, are favored by investors for growth potential. Hedge funds saw remarkable gains in 2024, with an average return of 10.7% through November. Notable performers include Light Street Capital, Discovery Capital, and Bridgewater’s Pure Alpha fund.

AppLovin Corporation (NASDAQ:APP) ranks 8th on the list of high-growth stocks favored by hedge funds, with 95 hedge fund holders and an average 5-year revenue growth of 31.91%. UBS analyst Chris Kuntarich reiterated a Buy rating on APP but lowered the price target to $450. APP’s Q4 2024 revenue rose 44% year-over-year to $1.37 billion, with advertising driving a 73% increase. Net income surged by 248% in Q4 and 343% for the full year. Hedge funds like GQG Partners hold significant stakes in APP.

While APP is a popular choice among hedge funds, some investors believe AI stocks offer greater potential for higher returns in a shorter timeframe. One AI stock has already shown gains in 2025 while popular AI stocks declined. For investors seeking a promising AI stock trading at less than 5 times its earnings, a report on the cheapest AI stock is available.

Overall, APP remains an attractive investment option, but the focus on AI stocks for potentially higher returns is gaining traction among investors.



Read more at Yahoo Finance: Is AppLovin Corporation (APP) Among The High Growth Companies Hedge Funds Are Buying?