12 Best Growth Stocks to Buy and Hold for the Long Term

3. AppLovin Corporation (NASDAQ:APP)

5-Year Sales Growth: 36.49%

Number of Hedge Fund Holders: 95

AppLovin Corporation (NASDAQ:APP) is a mobile technology company that provides end-to-end artificial intelligence solutions. The company primarily operates through two main business segments, including the Advertising and Apps segment. Under the Advertising Segment, the company operates a range of platforms, including AppDiscovery, Max, Adjust, and Wurl. On the other hand, through its Apps Segment, the company operates a portfolio of free-to-play mobile games through its own or partner studios.

On May 9, Bank of America Securities analyst Omar Dessouky reiterated a Buy rating and $580 price target on the stock. The analyst based his bullish sentiment on the strong Q1 2025 performance of AppLovin Corporation (NASDAQ:APP), particularly liking the Advertising segment. The segment demonstrated a 78% year-over-year growth to reach $1.158 billion. This led the total revenue of the company to $1.48 billion, reflecting a 40% growth year-over-year. The analyst highlighted that this growth was mainly driven by gaming advertisers and a notable surge in eCommerce revenue, surpassing Bank of America’s estimates.

Dessouky also pointed to AppLovin Corporation’s (NASDAQ:APP) new self-service dashboard, which is expected to accelerate advertiser onboarding and enhance future growth prospects. The company ranks as one of the best growth stocks to buy and hold for the long term.

Carillon Eagle Mid Cap Growth Fund stated the following regarding AppLovin Corporation (NASDAQ:APP) in its Q1 2025 investor letter:

“AppLovin Corporation (NASDAQ:APP) is a platform for mobile application developers to grow their apps through user acquisition, monetization, and analytics. The company continued to report healthy growth and provided guidance indicating robust future growth, thanks to the strong reception of its latest tools by existing customers and its expansion into new verticals. However, post-earnings, shareholders became concerned about a short seller’s report questioning data collection practices. Management addressed these issues thoroughly, but lingering questions and general tariff related news impacting the broader market have compounded concerns.”