10 Best Aggressive Growth Stocks to Buy According to Hedge Funds

8. AppLovin Corporation (NASDAQ:APP)

Revenue Growth: 44%

Number of Hedge Fund Investors In Q2 2024: 54

AppLovin Corporation (NASDAQ:APP) is a digital advertising company headquartered in Palo Alto, California. The firm primarily operates in the video game industry and allows video game advertisers and publishers to run analytics and buy and sell advertisements through auctions. At the heart of AppLovin Corporation (NASDAQ:APP)’s business is its contextual tracking engine, that enables advertisers to target ads based on user behavior. While the firm is currently limited to the video game industry, AppLovin Corporation (NASDAQ:APP) could choose to expand its presence in the highly growing connected television market. This industry is growing on the back of the Internet and displacing traditional television systems. AppLovin Corporation (NASDAQ:APP)’s engine is suited to internet based systems as it provides advertisers with key insights for targeting.

Connected TVs might not be the only market that AppLovin Corporation (NASDAQ:APP) could target. As per ClearBridge Investments’ Q1 2024 investor letter:

“We also added AppLovin, a disruptor in the IT sector that helps developers market and monetize their mobile apps. Powered by its proprietary targeting engine, the company’s software segment grew robustly in 2023 and should benefit from improving AI efficiency. We believe growth of the company’s targeting engine is still in the early innings as precision continues to improve, its adoption and dataset grow and AppLovin starts to license the engine to e-commerce advertisers, which could open up a brand new multibillion dollar market.”