12 Best Aggressive Growth Stocks To Buy According to Hedge Funds

4. AppLovin Corporation (NASDAQ:APP)

Revenue Growth: 38.6%

Number of Hedge Fund Investors In Q3 2024: 51

AppLovin Corporation (NASDAQ:APP) is a software company that works with video game companies to enable them to run advertisements, analytics, and other associated operations. It is one of the best-performing stocks of 2024 as the shares are up an unbelievable 935% year-to-date. AppLovin Corporation (NASDAQ:APP) is also a diversified company as it owns and runs more than 200 video games in a market where the internet and digital entertainment mediums reign supreme. The firm benefited from a blowout third-quarter earnings report in November which sent its shares surging by a stunning 33% in aftermarket trading. AppLovin Corporation (NASDAQ:APP)’s $1.2 billion in revenue marked a 38.6% annual growth and beat analyst estimates of $1.12 billion. Its median guidance of $1.25 billion for fourth-quarter revenue also beat analyst estimates of $1.17 billion by a comfortable $800 million. Looking ahead, AppLovin Corporation (NASDAQ:APP) could benefit from expanding into tertiary markets such as connected televisions to add more juice to its stock.

SaltLight Capital mentioned AppLovin Corporation (NASDAQ:APP) in its Q3 2024 investor letter. Here is what the fund said:

“This quarter, our notable contributors included AppLovin Corporation (NASDAQ:APP). We start with the current state of the “hit” title-driven market. These dynamics are not new, so many studios have transitioned to free-to-play games (FTP). We then talk about AppLovin, which is at the nexus of making this traditional market successful.

AppLovin is one of these intermediaries strategically positioned in the middle of the Bucket 3 segment

AppLovin has been a standout performer in our fund this quarter. In our 4Q 2023 letter, we highlighted the business, noting how it has built an exceptionally profitable AI-driven business by solving the abovementioned challenges for the game sector.

Saturated Player Time Growth: It’s worth restating the problem: growth in total engagement time has plateaued. The industry’s fight now is to claim a share of that time. But, what if, within this fixed engagement time, there was a scenario where gamers were discovering more relevant games, and, as a result, they might spend more money per hour of engagement – the game studios could still prosper? An analogy would be a scenario in which every employee was matched to their perfect job. They would be more productive, and everyone would be wealthier….” (Click here to read the full text)