2. AppLovin Corporation (NASDAQ:APP)
Number of Hedge Fund Holders as of Q4: 95
Millennium Management’s Equity Stake: $492.02 Million
Upside Potential as of April 26: 69.93%
AppLovin Corporation (NASDAQ:APP), a leading mobile technology company headquartered in Palo Alto, California, specializes in helping developers market, monetize, and analyze their apps through platforms such as MAX, AppDiscovery, and SparkLabs. In its most recent financial results, AppLovin reported strong growth, with Q4 2024 revenue rising 44% year-over-year to $1.37 billion and net income surging 248% to $599.2 million. For the full year, total revenue increased 43% to $4.71 billion, while net income climbed an impressive 343% to $1.58 billion.
The company’s advertising segment was the primary driver of this success, with Q4 advertising revenue jumping 73% year-over-year to $999.5 million and full-year advertising revenue increasing 75%. Although the apps revenue segment saw a slight 1% decline in Q4, it still achieved a 3% increase annually. AppLovin Corporation (NASDAQ:APP) also demonstrated strong financial discipline by executing significant share buybacks, retiring and withholding 1.6 million shares in Q4 and 25.7 million shares over the full year, totaling $2.1 billion. The company generated $701 million in net cash from operating activities in Q4 and $2.1 billion for the year, with free cash flow closely mirroring these figures, underscoring its financial strength.
Looking ahead to the first quarter of 2025, AppLovin Corporation (NASDAQ:APP) has issued an optimistic outlook, projecting revenue between $1.355 billion and $1.385 billion. The company also anticipates an adjusted EBITDA of $855 million to $885 million, reflecting a strong margin of 63% to 64%.
In the fourth quarter of 2024, Millennium Management expanded its stake in AppLovin Corporation (NASDAQ:APP) to over 1.5 million shares, reflecting a 114% increase from the previous quarter. This holding, now valued at approximately $492 million, is second on billionaire Israel Englander’s list of stock picks with huge upside potential. Institutional interest in the stock also surged, with 95 out of 1,009 hedge funds tracked by Insider Monkey holding positions worth nearly $11.96 billion by the end of Q4, up from 51 funds in the prior quarter. The growing hedge fund investment highlights strong confidence in AppLovin’s growth potential.
Carillon Eagle Mid Cap Growth Fund stated the following regarding AppLovin Corporation (NASDAQ:APP) in its Q1 2025 investor letter:
“AppLovin Corporation (NASDAQ:APP) is a platform for mobile application developers to grow their apps through user acquisition, monetization, and analytics. The company continued to report healthy growth and provided guidance indicating robust future growth, thanks to the strong reception of its latest tools by existing customers and its expansion into new verticals. However, post-earnings, shareholders became concerned about a short seller’s report questioning data collection practices. Management addressed these issues thoroughly, but lingering questions and general tariff related news impacting the broader market have compounded concerns.”
