We recently published a list of Top 12 AI Stocks Dominating the Market Right Now. In this article, we are going to take a look at where AppLovin Corporation (NASDAQ:APP) stands against other top AI stocks dominating the market right now.
s it time to sell the Mag-7 stocks? According to U.S. investment bank Goldman Sachs, investors may want to sell the Magnificent Seven after none of them delivered a positive earnings surprise this reporting season. To be fair, one important company still hasn’t reported its financial results for the final quarter of 2024. Regardless, the firm isn’t broadly optimistic about the stocks.
“This marks the first quarter with no positive sales surprises for the [Magnificent Seven] since 2022.”
– David Kostin, Chief U.S. Equity Strategist at Goldman Sachs.
On that note, Kostin has advised that investors may begin shifting capital to other technology companies, specifically those involved in artificial intelligence (AI).
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For those wondering exactly which artificial intelligence companies to invest in, Kostin suggests allocating capital to “AI Phase 3” companies. These companies have the potential to monetize AI by generating incremental revenues, such as in software and information technology (IT) services.
While choosing AI stocks for investment is important, an even more serious development in the tech world is the ongoing AI Summit in Paris. The summit has launched new partnerships, foundations, and projects as yet, and the BBC has also recently reported on an international agreement on artificial intelligence (AI) at the Summit.
According to the source, the US and the UK have reportedly declined to sign the agreement. While dozens of countries including France, China, and India, have already signed the charter that pledges an “open”, “inclusive” and “ethical” approach to the technology’s development, these two countries have chosen to decline instead.
The UK government has cited concerns about national security and “global governance” as reasons for not signing the agreement. Meanwhile, US Vice President JD Vance told delegates in Paris earlier that too much artificial intelligence (AI) technology regulation could “kill a transformative industry just as it’s taking off”.
According to Vance, AI was “an opportunity that the Trump administration will not squander” and said “pro-growth AI policies” should be prioritized over safety.
On the contrary, French President Emmanuel Macron has defended the need for further regulation.
“We need these rules for AI to move forward”.
-Macron said at the summit.
For those wondering what the agreement stipulates, the statement that 60 countries have signed aims to reduce digital divides by promoting AI accessibility, while ensuring AI development is “transparent”, and “safe” as well as “secure, and trustworthy”.
For this article, we selected AI stocks by going through news articles, stock analysis, and press releases. These stocks are also popular among hedge funds.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).
A close-up of a mobile device, showing an advertiser reaching out to a consumer via a software-based platform.
AppLovin Corporation (NASDAQ:APP)
Number of Hedge Fund Holders: 51
AppLovin Corporation (NASDAQ:APP) provides a leading marketing platform powered by AI technology. On February 10, Jefferies analyst James Heaney CFA maintained their bullish stance on the stock, giving a “Buy” rating along with an upward revision of the price target to $460. The analyst’s buy rating stems from Applovin’s potential to outperform market expectations in the upcoming quarters. A recent survey on mobile gaming advertising has revealed how AppLovin remains a leading network among major advertisers. Moreover, the shift in advertiser spending plans suggests a promising growth trajectory. E-commerce advertising data analysis further demonstrates substantial ad expenditure through AppLovin, which in turn points to a significant revenue boost in the near term. Applovin leverages its AI-driven ad technology, particularly its AI-driven ad engine Axon 2.0, to optimize mobile and e-commerce advertising. All of these positive indicators have led to a buy rating on the stock.
Overall, APP ranks 10th on our list of top AI stocks dominating the market right now. While we acknowledge the potential of APP as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than APP but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.
