10 Hottest Mega-Cap Stocks of 2025

2. AppLovin Corporation (NASDAQ:APP)

AppLovin stock continues to surge this year. After amassing 800% returns in 2024, one would think the stock was done rallying. However, it only seems to have paused for a month and is now gaining attention again. The stock is up over 10% this year.

AppLovin helps developers manage their development and marketing tasks with ease. The company’s AXON AI engine helps increase the chances of app installs. This AI engine helps drive the success of the comprehensive suite of tools that the company offers to developers to help them expand their reach globally.

The company’s stock narrowly missed inclusion in the S&P 500 in December. However, considering the fact that it is actually using AI to benefit its customers, resulting in revenue, chances are that the strong fundamentals will continue to drive the stock up. The S&P 500 inclusion will therefore be a matter of when, not if. Investors will have their eyes on the next quarterly rebalancing.

The stock will also be driven by the growth of both in-app advertising and in-app purchases. The success of the company this year depends on the development of its AXON AI engine. If that continues to improve as AI technologies get better, the firm should be able to continue generating increasing revenue with ease.