10 Best Long Term Growth Stocks to Buy According to Billionaires

3. AppLovin Corporation (NASDAQ:APP)

5-Year Revenue Growth: ~36.4%

Number of Billionaire Investors: 17

Number of Hedge Funds: 95

AppLovin Corporation (NASDAQ:APP) is engaged in building a software-based platform for advertisers in a bid to enhance the marketing and monetization of their content. Citi analysts upheld a “Buy” rating with a price objective of $600.00 on the company’s shares after its recent interest in acquiring TikTok’s assets outside of China. On April 3, 2025, AppLovin Corporation (NASDAQ:APP) confirmed that it has indicated interest to the President of the United States to explore a purchase of TikTok in all markets outside of China. While the indication of interest is preliminary, and there can be no assurance that a transaction will proceed, Citi analysts expect numerous strategic advantages if it proceeds.

The addition of TikTok could potentially accelerate AppLovin Corporation (NASDAQ:APP)’s expansion into non-gaming advertising categories. Also, the access to TikTok’s data can improve the company’s proprietary machine learning model, AXON. Owning the advertising inventory can also reduce any AdTech discount, potentially enhancing its valuation multiples. For Q1 2025, AppLovin Corporation (NASDAQ:APP) expects advertising revenue in the range of $1,030 million – $1,050 million and total revenue of between $1,355 million – $1,385 million. Total adjusted EBITDA is expected to be between $855 million – $885 million.

Sands Capital, an investment management company, released its Q4 2024 investor letter. Here is what the fund said:

“AppLovin Corporation (NASDAQ:APP) is one of the leading providers of advertising solutions for mobile game developers. The business aggregates advertising inventory for mobile gaming, offering a suite of products to track advertising performance to optimize distribution and monetization. The company has a dominant position in mobile ad mediation, as well as a strong position on the demand side. Since the launch of Axon 2.0, its artificial intelligence-based advertising model, AppLovin has begun fine-tuning its large-language model for ecommerce, receiving strong early feedback from ecommerce advertisers. In our view, this provides an opportunity for the business to expand outside its core gaming vertical to ecommerce and aggregate demand from nongaming applications. While this opportunity is early, the unconstrained nature of performance advertising provides upside to both the magnitude and duration of growth that AppLovin could sustain if successful.”