Applovin(APP) The Motley Fool·2025-01-25 13:05Market Overview - Growth stocks with high potential upside can deliver significant returns over years or decades [1] - The S&P 500's strong performance in 2023 has led to substantial gains for investors who invested at the start of the year [1] AppLovin - AppLovin helps businesses monetize mobile games and has expanded into e-commerce, driving investor excitement [3] - The company's sales totaled 980.6 million during the same period [3] - AppLovin was unprofitable in 2022 but has shown impressive growth recently, leading to its inclusion in the Nasdaq-100 index [4] - An 339,000 by the end of 2024 [4] - The stock trades at 100 times trailing earnings and 28 times revenue, indicating a high valuation [5] MicroStrategy - MicroStrategy's stock has surged due to its bullish strategy on Bitcoin, despite its primary business being business intelligence solutions [6] - The company holds 450,000 bitcoins as of January 20, making it the largest corporate holder of Bitcoin [7] - An 225,000 by the end of 2024 [6] - The company has incurred losses in three consecutive quarters and is highly sensitive to Bitcoin price fluctuations [8] Carvana - Carvana, an online used-car retailer, has seen significant gains despite past profitability struggles [9] - An 472,000 by the end of 2024 [10] - The company has posted modest profits in the past three quarters due to improved economic conditions and interest rate cuts [12] - Profit margins remain tight, and the economic outlook is still uncertain, making the stock a risky investment [12]