10 Best Performing Stocks in 2024

3. Applovin Corp. (NASDAQ:APP)

Year-to-Date Performance as of September 23: 217.93%

Market Cap as of September 23: $42.31 billion

Number of Hedge Fund Holders: 54

Applovin Corp. (NASDAQ:APP) is an American mobile technology company that operated in stealth mode until 2014. It has a mobile platform that provides a suite of tools and services to help app developers grow their businesses, offering a variety of services, including advertising, analytics, and monetization solutions.

In the second quarter of 2024, this company was able to make $1.08 billion in revenue, up 43.98% year-over-year. Most of this growth was driven by the company’s software platform generating $711 million in revenue, while app revenue recorded $369 million.

The company’s platform is attracting more advertisers and higher spending, but it’s still working to find users who meet advertisers’ revenue targets. Management aims for long-term software business growth of 20-30%. 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, maintaining steady quarter-over-quarter growth of 5-7% in the software business.

Its contextual tracking engine enables advertisers to target ads based on user behavior. While currently focused on the video game industry, the company has the potential to expand into the growing connected television market. This industry is booming due to the internet replacing traditional television systems. Its engine is well-suited for internet-based platforms, offering advertisers valuable insights for targeted advertising.

AppLovin Corp. (NASDAQ:APP) is poised for growth in the mobile advertising market, leveraging its AI-powered platform and strong partnerships. The company plans to invest in organic growth, focusing on engineering and business development to support its 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.”