10 Best Performing NASDAQ Stocks in 2024

2. Applovin Corp. (NASDAQ:APP)

Year-to-Date Performance as of October 2: 227.85%

Number of Hedge Fund Holders: 54

Applovin Corp. (NASDAQ:APP) is a mobile technology company that operated in stealth mode until 2014. Its platform connects app developers with advertisers, offering a suite of tools and services to help app developers monetize their apps through advertising, while also providing advertisers with effective ways to reach their target audience. Its technology leverages machine learning and data analytics to optimize ad placements and deliver high-quality traffic to advertisers.

The platform is attracting more advertisers and generating higher spending. However, the company is still working to find users who meet advertisers’ revenue goals. As the technology improves, Applovin Corp. (NASDAQ:APP) expects to attract more users, leading to increased ad spending and growth. Management aims to grow the software business by 20-30% in the long term.

In-app advertising offers significant growth potential. Management highlighted the MAX platform’s role in driving this growth by transitioning from inefficient waterfall methods to programmatic bidding, expressing confidence in maintaining consistent sequential growth rates of 5-7% in the software business.

In Q2, the company’s software platform generated $711 million in revenue, and app revenue reached $369 million. Overall revenue for Q2 2024 totaled $1.08 billion, representing a 43.98% improvement from the year-ago period. It piloted a program that allows e-commerce websites to purchase in-app mobile game video ad inventory in the second quarter of 2024. This initiative directs game users to the e-commerce sites and is part of AppLovin’s strategy to attract more advertisers by leveraging its extensive user base.

AppLovin Corp.’s (NASDAQ:APP) AI-powered platform and strategic partnerships position it well for growth in the mobile advertising market. Management plans to invest in organic growth, focusing on engineering and business development to support AXON technology and e-commerce expansion.

Carillon Scout Mid Cap Fund stated the following regarding AppLovin Corporation (NASDAQ:APP) in its Q2 2024 investor letter:

“AppLovin Corporation (NASDAQ:APP) was another top contributor. The advertising technology platform, focused on mobile applications, reported strong earnings results in early May. Its AI-driven Axon 2.0 mobile advertising platform continues to produce strong returns for customers, which is leading to more than expected spending on the platform. Although the one-year anniversary of Axon 2.0’s release occurs this year, the company is already working to expand beyond mobile applications with opportunities in e-commerce and connected television. We believe AppLovin’s valuation, free cash flow, and leading market share remain attractive.”