7 Most Profitable New Stocks to Buy Right Now

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1. AppLovin Corporation (NASDAQ:APP)

Number of Hedge Fund Holders: 110

AppLovin Corporation (NASDAQ:APP) is one of the most profitable new stocks to buy right now. On February 5, Wedbush analyst Michael Pachter lowered the firm’s price target on AppLovin from $800 to $465, while keeping an Outperform rating. This valuation reset accounts for softer industry sentiment, regulatory headwinds, and recent competitor data in the e-commerce sector.

Despite these near-term pressures, Wedbush remains confident in AppLovin’s dominant position in mobile gaming advertising and believes its strategic expansion into e-commerce and Connected TV will provide long-term protection against competitive threats.

On January 26, Needham upgraded AppLovin to Buy from Hold with a $700 price target, citing increased confidence in the company’s 2026 e-commerce revenue trajectory. The firm raised its 2026 e-commerce sales estimates to $1.45 billion from $1.05 billion, projecting that growth from the self-service platform launch and increased advertiser spending will more than offset typical first-quarter seasonality. This upgrade also capitalizes on a recent stock pullback from its monthly highs, with Needham noting a bullish case where AppLovin’s revenue could follow a growth path similar to TikTok.

AppLovin Corporation (NASDAQ:APP) builds a software-based platform for advertisers to enhance the marketing and monetization of their content in the US and internationally. It operates through two segments: Advertising and Apps

While we acknowledge the potential of APP to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than APP and that has 100x upside potential, check out our report about this cheapest AI stock.

READ NEXT: 30 Stocks That Should Double in 3 Years and 11 Hidden AI Stocks to Buy Right Now.

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