13 Most Profitable Growth Stocks to Buy Now

10. AppLovin Corporation (NASDAQ:APP)

Net Profit in the latest fiscal year: $1.58 billion

Revenue CAGR last 5 years: 39.75%

Number of Hedge Fund Holders: 95

​AppLovin Corporation (NASDAQ:APP) is a technology platform company that provides AI-driven advertising solutions to help businesses reach and monetize their software applications. Its main products include AppDiscovery for user acquisition and MAX for in-app monetization. APP ranked first on our recent list of 12 Best Multibagger Stocks to Buy in 2025.

AppLovin Corporation (NASDAQ:APP) delivered strong financial results in Q4 2024, with total revenue increasing 44% YoY to $1.37 billion and adjusted EBITDA growing 78% to $848 million, achieving a 62% margin. The company made a significant breakthrough by successfully capturing holiday shopping advertising dollars and expanding beyond gaming into e-commerce and other advertising categories. The company announced plans to sell its Apps business for $900 million, consisting of $500 million in cash and a minority equity stake in the combined private company, as it transitions to focus purely on its advertising platform.

Looking ahead, AppLovin Corporation (NASDAQ:APP) is positioning itself to serve the entire global advertising economy, with potential access to over 10 million businesses worldwide that could use its platform profitably. The company’s priority for 2025 is developing automated tools and self-service capabilities to enable scaling of new business onboarding, while maintaining its focus on operational excellence, as evidenced by its $3 million run rate adjusted EBITDA per employee in the advertising business. The platform’s success isn’t limited to direct-to-consumer brands, as early pilots have shown positive outcomes across various advertiser categories, suggesting significant growth potential as they expand their advertiser base. The company’s strong growth momentum, as evidenced by a whopping 39.75% last 5-year revenue CAGR, secured APP’s place on our list of the most profitable growth stocks to buy.