13 Best Technology Stocks to Buy for Long-Term Investment

6. Applovin Corp. (NASDAQ:APP)

3-Year Revenue CAGR: 22.19%

Number of Hedge Fund Holders: 95

Applovin Corp. (NASDAQ:APP) builds a software-based platform for advertisers to enhance the marketing and monetization of their content. It serves individuals, small and independent businesses, enterprises, advertisers & advertising networks, mobile app publishers, and indie studio developers. It operates through two segments: Advertising and Apps.

UBS raised the firm’s price target on AppLovin to $475 from $450 on May 8 while keeping a Buy rating. This is because the company’s Q1 2025 results reflected another quarter of broad-based strength. The company made $1.48 billion in quarterly revenue, which was an improvement of 40.25% year-over-year. AppLovin’s Advertising business alone generated $1.16 billion in revenue in Q1.

This was driven by improvements in the company’s AI-powered tech for app discovery and the contribution of its web-based advertising solution. Notably, over 90% of the company’s ad revenue comes from mobile games, which aren’t directly impacted by tariffs. The analysts at UBS also noted that Applovin Corp. (NASDAQ:APP) tested exclusionary targeting for ad audiences, which could potentially attract more advertisers due to the company’s willingness to engage with advertiser requests.

ClearBridge Mid Cap Strategy stated the following regarding AppLovin Corporation (NASDAQ:APP) in its Q1 2025 investor letter:

“AI-beneficiary and strong fourth-quarter performer AppLovin Corporation (NASDAQ:APP) came under pressure from several reports from short sellers seeking to capitalize on a reversal in the company’s strong momentum amid the broader tech retreat. However, we believe the AI-enabled advertising software platform continues to be one of the best AI opportunities within the mid cap market. Recent positive channel indicators for its e-commerce business point toward a solid and persistent future of attractive returns for AppLovin, and we used the short-natured weakness to add to our position.”