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Prediction: These 2 Stocks Will Join the S&P 500 in 2025
APPApplovin(APP) The Motley Fool·2024-12-22 12:53

Group 1: S&P 500 Index Criteria and Importance - The S&P 500 index includes 500 top U.S. large-cap stocks, requiring companies to be U.S.-based, profitable on a GAAP basis over the last four quarters, and have a market cap generally above 10 billion [1] - Stocks added to the S&P 500 typically experience a price jump due to the mandatory purchases by ETFs that track the index, with the Vanguard S&P 500 ETF managing over 1 trillion in assets [13][8] - The S&P 500 is considered a better reflection of the overall market compared to other indexes like the Dow Jones Industrial Average [14] Group 2: AppLovin's Performance and Growth - AppLovin's software platform, particularly its AppDiscovery marketing software, is a primary growth driver, contributing over two-thirds of its revenue in the quarter [2] - AppLovin's market cap has surged to 107 billion, positioning it among the top 100 S&P 500 companies by market cap, with a year-to-date stock increase of 700% [12][16] - The company has shown significant growth, with revenue jumping 39% in the third quarter to 1.2 billion and net income increasing 300% to 434million[9]Group3:TheTradeDesksGrowthandMarketPositionTheTradeDeskhasestablisheditselfasaleadingindependentdemandsideplatforminadtech,witharevenueincreaseof27434 million [9] Group 3: The Trade Desk's Growth and Market Position - The Trade Desk has established itself as a leading independent demand-side platform in adtech, with a revenue increase of 27% in its third-quarter earnings report and a GAAP net income jump of 141% to 94 million [6][5] - The Trade Desk has maintained high customer satisfaction with a retention rate of at least 95% over the last decade, and it continues to innovate with new products like the Kokai AI platform [6] - With a market cap of $62.3 billion, The Trade Desk is well-positioned to join the S&P 500, reflecting its solid growth and profitability [7]