We recently published Jim Cramer’s Biggest Losers: 10 Stocks That Just Didn’t Work Out. AppLovin Corporation (NASDAQ:APP) is one of the stocks discussed by Jim Cramer.
AppLovin Corporation (NASDAQ:APP) is a technology company that enables customers to run digital advertisements. Its shares are up by 52% over the past year and are down by 14.8% year-to-date. The stock closed 4.5% higher on June 29th. On that day, Raymond James initiated coverage of the firm to set a Strong Buy rating and a $640 share price target. The financial firm discussed AppLovin Corporation (NASDAQ:APP)’s move into eCommerce advertising and the integration of AI into its operations as some of the reasons behind its optimism. Other factors that have impacted the stock include Google’s Project Genie and competition from social media giant Meta, with some reports suggesting that the stock has struggled due to these. AppLovin Corporation (NASDAQ:APP)’s shares closed 16.9% lower on January 30th, while on January 29th, Google’s Genie launch enabled users to create and interact in digital worlds. Cramer discussed AppLovin Corporation (NASDAQ:APP) in detail on January 5th:
“The eighth-best stock in the Nasdaq-100 was AppLovin. Now, that’s an advertising software company that helps its customers, like many mobile game developers, grow their reach and monetize their platforms. Now, this is another one with a big retail following. The stock put up huge gains earlier in the year before flattening out over the past few months, but did finish 2025 up 108%. Of course… some people would call these cult stocks. AppLovin’s expensive, trading at 43 times this year’s earnings estimates, which only seems cheap in comparison to Palantir. That said, this company has legitimately great growth and the business is incredibly profitable. Right now, you know what, I can’t name a single competitor to AppLovin. It’s like this company has the whole market to itself. Specifically, AppLovin has seen its revenue roughly triple in the past four years. Meanwhile, the earnings per share have gone from next to nothing to an expected $9.37 for 2025, which would be more than double 2024’s number. The best part, AppLovin’s growth is expected to continue or even accelerate. Wall Street’s looking for 37% revenue growth and 56% earnings growth. And that’s why I’m more comfortable recommending this one because even though AppLovin trades like a speculative stock, the business really isn’t that speculative.”
While we acknowledge the risk and potential of APP as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than APP and that has 10,000% upside potential, check out our report about the cheapest AI stock.
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