These stocks are up big, but that doesn't mean that they can't go up even more.
AppLovin (APP) closed the most recent trading day at $143.40, moving -0.08% from the previous trading session.
These fives stocks have strong growth potential for the rest of 2024. These are: APP, DUOL, PARAA, TWLO, CTLT.
Investors are sleeping on these high-growth tech stocks with strong financial results.
Given the continued strength in APP shares, we analyze its current position to determine whether it presents a good investment opportunity at this time.
AppLovin (APP) has received quite a bit of attention from Zacks.com users lately. Therefore, it is wise to be aware of the facts that can impact the stock's prospects.
The recent surge in AppLovin's share price can be attributed to a powerful combination of catalysts, including rapid revenue growth, enhanced operating leverage, and emerging new opportunities. There's a strong likelihood that the significant stock momentum, coupled with bullish sentiment from prominent Wall Street figures, will drive further growth for the stock. Furthermore, both the forward P/E and DCF models suggest potential undervaluation, indicating a target price of $156.
Investors are sometimes cautious when approaching a stock that has increased by this magnitude.
AppLovin's stock has surged over 200% YTD, driven by high FCF growth, revenue growth, and strategic share buybacks. The company's expansion into e-commerce and other verticals, leveraging its Axon AI technology, is a key future growth driver for its software business. AppLovin's impressive EBITDA flow-through of 81% growth highlights its high operating leverage and profitability.
AppLovin's AI-native, data-driven platform is well-positioned to thrive as more marketing dollars shift to digital platforms. AppLovin's advanced recommendation engine aligns with CMOs' needs for cost-effective, targeted advertising, potentially benefiting from economic downturns as firms seek budget efficiency. Despite the potential economic headwinds, AppLovin's focus on AI and automation provides a higher value to CMOs on a per-dollar basis.
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