15 High Growth Companies Hedge Funds Are Buying

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8. AppLovin Corporation (NASDAQ:APP)

Number of Hedge Fund Holders: 95

Average 5-Year Revenue Growth: 31.91%

AppLovin Corporation (NASDAQ:APP) helps advertisers and app developers grow through its marketing and monetization platform. It offers tools like AppDiscovery, MAX, and Adjust for ad optimization and analytics, and owns Wurl for connected TV advertising. AppLovin Corporation (NASDAQ:APP) ranks 8th on our list of the high growth stocks most popular among smart investors.

On April 11, UBS analyst Chris Kuntarich reiterated a Buy rating on APP but slashed the price target from $630 to $450. UBS sees improving investor sentiment around AppLovin despite recent short report concerns. The firm expects Q1 e-commerce revenue at $90 million, below market forecasts, but remains optimistic about long-term growth.

AppLovin Corporation (NASDAQ:APP)’s Q4 2024 revenue hit $1.37 billion, a 44% increase from the previous year, while full-year revenue grew 43% to $4.71 billion. The big driver was advertising, which saw a 73% jump, though app revenue dipped a little. Net income rose by 248% in Q4 and 343% for the whole year. The company also repurchased 25.7 million shares in 2024, leaving 340 million shares outstanding. For Q1 2025, APP expects revenue of up to $1.385 billion.

According to Insider Monkey’s Q4 data, 95 hedge funds held stakes in AppLovin Corporation (NASDAQ:APP), compared to 51 funds in the last quarter. Rajiv Jain’s GQG Partners was the largest stakeholder of the company, with 8.4 million shares valued at $2.7 billion.

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