11 High-Risk High-Reward Growth Stocks To Buy Now

3. AppLovin Corporation (NASDAQ:APP)

Beta: 2.31

5-Year Sales Growth: 39.75%

Number of Hedge Fund Holders: 95

Analyst Upside Potential: 63.37%

AppLovin Corporation (NASDAQ:APP), based in California, is a mobile technology company that provides AI-driven advertising solutions for app developers. The company integrates game publishing and analytics, thereby optimizing ad placement for maximum revenue. It differs from competitors like Unity and IronSource by focusing on machine learning algorithms and establishing a vast mobile app ecosystem. The company has a global reach with software platform products like AppDiscovery, MAX, SparkLabs, AppLovin Exchange, Array, Adjust, and Wurl, among others, widely used in the U.S., Asia, and Europe.

AppLovin Corporation (NASDAQ:APP) saw a massive 44% increase in total revenue, reaching $1.37 billion in the fourth quarter of 2024. Expansion of its advertising platform beyond gaming has attracted a broader set of advertisers, including e-commerce, thereby contributing to an increase in revenue. Even with the lack of full self-service capabilities limiting the company’s ability to handle growth at scale, the company has still managed to appeal to investors.

A high beta of 2.31 implies considerable price swings in the stock compared to the market. Sales have an upward trajectory, recording a 39.75% expansion over five years. Strong profitability trends are seen in the company’s past 5-year EPS growth of 84.28%. The 5-year forward projection of 38.61% suggests a moderate pace ahead.

Our Insider Monkey database noted 95 hedge funds holding positions at the end of Q4 2024, pointing to high institutional interest. Analysts predict a substantial 63.37% upside in one year, reflecting strong market sentiment.