1. Apollo Global Management, Inc. (NYSE:APO)
5-Year Sales Growth: 55.65%
5-Year Net Income Growth: 40.26%
TTM Net Income: $4.33 Billion
Number of Hedge Fund Holders: 90
Apollo Global Management, Inc. (NYSE:APO) is a leading global alternative asset manager and retirement services provider. The company operates through Asset Management, Retirement Services, and Principal Investing. It manages over $500 billion in assets and operates globally with offices in multiple regions.
In the fiscal fourth quarter of 2024, Apollo Global Management, Inc. (NYSE:APO) achieved record fee-related earnings of $554 million and an adjusted net income of $1.4 billion. Moreover, Assets Under Management reached a record $751 billion, with total inflows of $150 billion. Baron FinTech Fund mentioned the company in its Q4 2024 investor letter, highlighting that the company was one of the main contributors to the fund’s performance. It also noted that Apollo Global Management, Inc. (NYSE:APO) has recently been added to the S&P 500, which is expected to broaden the shareholder base and provide more investors access to private markets through their stock.
The company aims to grow its fee-related earnings at an average annual rate of 20% and spread-related earnings at 10% over the next five years. It is the top high-growth non-tech stocks that are profitable in 2025.
Baron FinTech Fund stated the following regarding Apollo Global Management, Inc. (NYSE:APO) in its Q4 2024 investor letter:
“Alternative asset manager Apollo Global Management, Inc. (NYSE:APO) contributed to performance. The company held a well-received Investor Day during which management highlighted the firm’s expansive credit management capabilities and introduced bullish five-year growth targets. Apollo also participated in the broader rally of financial stocks spurred by the Republican elections sweep, which has bolstered expectations for greater capital markets activity and looser regulations. Investors expect a more business-friendly administration will support growth initiatives for alternative managers, including plans to introduce private investments into retirement accounts. Finally, Apollo was added to the S&P 500 Index during the quarter, which prompted passive buying of the shares. We remain invested due to Apollo’s long-term growth prospects, formidable competitive advantages, and strong management team.”
While we acknowledge the potential of APO to grow, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than APO but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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