10 Hidden AI Stocks to Buy Now

7. AppLovin Corp. (NASDAQ:APP)

Number of Hedge Fund Holders: 54

AppLovin Corp. (NASDAQ:APP) is a mobile app platform that uses AI to optimize app discovery, user acquisition, and monetization. It uses ML algorithms to analyze user data, identify target audiences, and deliver relevant ads to increase app downloads and engagement. Its products are used by both its gaming advertisers and the connected television market which relies on the Internet.

During this quarter, improvement in the company’s AXON technology contributed to the growth of its software platform, generating $711 million in revenue. The app revenue was $369 million, an increase of 7% from last year. The overall revenue for Q2 2024 was $1.08 billion, a 43.98% year-over-year improvement. Management says that the plan now is to invest in organic growth, focusing on engineering and business development to support AXON technology and e-commerce expansion.

AppLovin Corp.’s (NASDAQ:APP) CEO, Adam Foroughi, highlighted the growth potential of in-app advertising. He emphasized the MAX platform’s role in driving this growth by transitioning from inefficient waterfall methods to programmatic bidding. He expressed optimism about maintaining steady growth rates ( 5% to 7% quarter-over-quarter) in the software business, driven by ongoing product enhancements and new categories.

It is well-positioned for growth in the mobile advertising market. With its AI-powered platform and strong partnerships, it can grow rather quickly. As of June 30, the company is held by 54 hedge funds. The largest one is valued at $1,105,913,583 by GQG Partners.

ClearBridge Select Strategy stated the following regarding AppLovin Corporation (NASDAQ:APP) in its first quarter 2024 investor letter:

“We also added AppLovin Corporation (NASDAQ:APP), 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.”