5 Best App Stocks to Buy Today

2. Alphabet Inc. (NASDAQ: GOOG) 

Market Cap: $1.66 trillion
Popular Apps: Google Play Store, Gmail, Google Maps 

Alphabet Inc. (NASDAQ: GOOG) is an American multinational company and became the holding company of Google in 2015. It ranks second on our list of the best app stocks to buy today. It mainly deals in web-based research, software applications, maps, etc., but the major chunk of its mobile revenue comes from its in-app advertisements using Google Ads. The digital service, Google Play Store, gives users a chance to choose from over 5 million apps, games, movies, music, and books. In 2020, the revenue of Play Store stood at $38.6 billion. Recently, following in Apple Inc’s. (NASDAQ: AAPL) footsteps, Alphabet Inc. (NASDAQ: GOOG) has announced to reduce the Play Store’s cut to 15% from 30%, in order to approach more developers. 

In Q1 2021, Alphabet Inc. (NASDAQ: GOOG) generated over $55 billion in revenues, showing 34% growth year-over-year. The EPS stood at $26.2, beating the market estimate of $15.8. The advertisement segment remained the winner in Q1 2021, accounting for $44.68 billion of the revenue, up from $33.7 billion during the same period last year. YouTube adds generated $6.00 billion in revenues in this quarter. 

The stock price has also soared by 66.9% in the past year and 40.3% year to date. Earlier in April, the board at Alphabet Inc. (NASDAQ: GOOG) announced a $50 billion stock repurchase after seeing growth in revenues for consecutive two quarters. 

Artisan Partners, an investment management firm, released its Q1 2021 investor letter and mentioned Alphabet Inc. (NASDAQ: GOOG). Here is what the firm has to say: 

“Large-cap tech companies have been resilient through the pandemic—Alphabet among them. A top contributor, Alphabet’s Play Store and Google Cloud are in demand as businesses accelerate online activity which, along with strong YouTube user growth, is helping stabilize temporarily weaker search ad revenue trends. Through the lens of our disciplined bottom-up research process, we view Alphabet as one of the best businesses in the world, capable of expanding revenues at a rapid rate for years to come, with a bullet proof balance sheet and an average asking price. It’s a name we’ve owned since 2012 and for which we continue to have high hopes regarding future prospects.”