Big returns on the market can sometimes come unexpectedly. Putting money into growth stocks with a lot of potential upside can deliver life-changing returns.
There's been a lot of chatter about APP stock potentially slowing, but earnings estimates are on the rise.
AppLovin stock price has boomed in the past few years, making it one of the best-performing companies in Wall Street. APP surged by over 3,500% from its lowest level in 2023, transforming it into a $121 billion behemoth.
AppLovin (APP) closed at $338.39 in the latest trading session, marking a -1.15% move from the prior day.
Given this broadly bullish backdrop, let's dig into how investors can use a Zacks screen to help find some of the best Zacks Rank #1 (Strong Buy) stocks to buy now and throughout 2025.
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.
Stock splits, which occur when a company divides its existing shares into multiple shares, effectively increasing the outstanding shares while maintaining the same market capitalization, have been all the rage on Wall Street over the past few years, with companies like Amazon, Nvidia, and Tesla participating in the frenzy.
Growth stocks have been helping propel the stock market higher for the past decade. Although the market has been off to a choppy start in 2025, there is good reason to believe that growth stocks can continue to lead it higher in the years ahead.
Morgan Stanley expects a bunch of US companies to benefit if a federal ban on TikTok goes into effect on Sunday. There have been reports that the renowned social platform for sharing short videos plans on drawing the curtains on its app in the United States on January 19th.
I have a buy rating on AppLovin due to its strong Q3 results, high-growth potential, and favorable technical setup ahead of Q4 earnings. APP's Q3 GAAP EPS of $1.25 beat expectations, with revenue up 39% YoY; the stock surged 46% post-earnings. APP's scalable business model, high margins, and robust revenue growth justify its premium valuation despite macroeconomic and interest rate risks.
AppLovin's strategic partnership with Google Cloud has significantly improved its unit economics, benefiting both the company and its customers, leading to strong performance in 2024. The company's expansion into e-commerce is expected to contribute ~10% of total ad dollars it earns, enhancing ad platform economics and driving future growth. Management's positive outlook on e-commerce and robust ad performance signal potential revenue growth of 27% y/y in CY25, with adj. EBITDA margins reaching 56-57%.
Why investors should use the Zacks Earnings ESP tool to help find stocks that are poised to top quarterly earnings estimates.