We recently compiled a list of the 14 Best American Tech Stocks To Buy Now. In this article, we are going to take a look at where AppLovin Corporation (NASDAQ:APP) stands against the other American tech stocks.
American stocks moved up a bit on Monday, April 14 as investors focused on news about tech companies getting a break from President Trump’s tariffs. The S&P 500 rose by 0.8%, the tech-heavy Nasdaq rose by 0.6%, and the Dow Jones Industrial Average increased by about 0.7%.
READ ALSO: 11 Best American Energy Stocks to Buy Now and 10 Best Stocks Under $10 to Buy Now.
In recent days, President Trump and his advisers have given mixed signals on the future of tariffs on China and on specific industries. Over the weekend, big American tech companies scored a victory when it was revealed that the US had not put tariffs on smartphones, computers, and other consumer electronics.
However, on Sunday, US Commerce Secretary Howard Lutnick stated that these electronics would soon be covered under new tariffs, which would be different from those imposed on specific countries. President Trump also posted on social media that there would be “no exception” for these products. He also said that the government is looking at semiconductors and the entire electronics supply chain in the upcoming National Security Tariff Investigations.
Last week was the best week for the major indexes since at least 2023. However, with all this uncertainty, Wall Street is getting ready for another week of potential tariff-fueled ups and downs.
Methodology
To compile our list of the 14 best American tech stocks to buy now, we used stock screeners from Finviz and Yahoo Finance to find the largest American technology companies. We sorted our results based on market capitalization and picked the top 30 American stocks. Next, we focused on the 14 stocks most favored by institutional investors. Data for the hedge fund sentiment surrounding each stock was taken from Insider Monkey’s Q4 2024 database of more than 1,000 elite hedge funds. Finally, the 14 best American tech stocks to buy now were ranked in ascending order based on the number of hedge funds holding stakes in them as of Q4 2024.
Why do we care about what hedge funds do? 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 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
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AppLovin Corporation (NASDAQ:APP)
Number of Hedge Fund Holders: 95
AppLovin Corporation (NASDAQ:APP) is an American mobile technology company. It offers end-to-end software and AI solutions for businesses of every size to reach, monetize, and grow their global audiences. AppLovin Corporation (NASDAQ:APP) is actively working to improve its advertising AI models, which are still in early stages. The company also announced its intention to launch a self-service dashboard in 2025, which will be powered by AI agents to help its customers manage their campaigns more effectively. AppLovin Corporation (NASDAQ:APP) ranks among the best American stocks to buy now.
On April 9, Jefferies analyst James Heaney lowered the firm’s price target on AppLovin Corporation (NASDAQ:APP) from $600 to $460 but maintained a “Buy” rating. This adjustment was based on good feedback about the company’s e-commerce advertising platform. Heaney noted that advertisers participating in the pilot program achieved spending levels comparable to those on TikTok and YouTube without any drop in performance. Heaney also pointed out that the sales and conversions on AppLovin Corporation’s (NASDAQ:APP) platform are incremental and do not take away from results on other advertising platforms. The analyst noted that AppLovin Corporation (NASDAQ:APP) is currently trading at 16 times its forecasted FY26 EBITDA. According to Jefferies, a revenue beat in the first quarter and commentary on steady revenue growth of about 4-5% quarter-over-quarter could act as a catalyst for the stock.
Overall, APP ranks 14th on our list of the best American tech stocks to buy 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 time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. 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.
