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3 Stocks That Have Doubled Since Trump's Election Win. Can They Still Go Higher?
APPApplovin(APP) The Motley Fool·2025-02-05 14:20

AppLovin - AppLovin's shares have increased by 121% since the election, driven by strong third-quarter results and growth potential [1][2] - The company reported a 39% revenue growth for the period ending September 30, 2024, with sales reaching 1.2billion[2]−AppLovin′snewpilotprojectine−commerceadsmayunlockadditionalrevenuegrowthopportunities[2]−Thestocktradesatover110timesitstrailingearnings,indicatingpotentialforacorrectionunlessearningsimprovesignificantly[4]SoundHoundAI−SoundHoundAI′sshareshavesurgedbyover1651.2 billion [2] - AppLovin's new pilot project in e-commerce ads may unlock additional revenue growth opportunities [2] - The stock trades at over 110 times its trailing earnings, indicating potential for a correction unless earnings improve significantly [4] SoundHound AI - SoundHound AI's shares have surged by over 165% since the election, benefiting from potential lower interest rates [5] - The stock's rally was catalyzed by the launch of its AI Smart Ordering product at various restaurant locations [6] - The company reported a net loss of 111 million over the trailing 12 months, with revenue of 67million,indicatinganeedforstrongerearningstosustainstockgrowth[7][8]−SoundHoundAItradesatahighprice−to−salesmultipleof65,suggestingacautiousapproachforinvestors[8]GeoGroup−GeoGroup′sshareshaverisenby10567 million, indicating a need for stronger earnings to sustain stock growth [7][8] - SoundHound AI trades at a high price-to-sales multiple of 65, suggesting a cautious approach for investors [8] Geo Group - Geo Group's shares have risen by 105% since the election, potentially benefiting from the president's tough crime policies [9] - The company has posted a profit of 36 million on revenue of $2.4 billion over the past four quarters, with minimal revenue growth in recent years [10] - The stock trades at over 110 times its trailing earnings, raising concerns about its high valuation despite potential business growth from government contracts [11] - A significant government deal announcement could further boost Geo Group's stock value [12]