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Prediction: 2 Stocks That Will Be Worth More Than AppLovin 2 Years From Now
APPApplovin(APP) The Motley Fool·2025-03-26 08:45

Group 1: AppLovin Overview - AppLovin went public on April 15, 2021, at 80,anditsstockcurrentlytradesatabout80, and its stock currently trades at about 315, resulting in a significant increase in investment value [1] - In 2022, AppLovin's revenue growth stagnated, leading to a net loss due to macroeconomic challenges, despite a 1.1billionacquisitionofMoPub[2]−In2023,AppLovin′srevenueincreasedby171.1 billion acquisition of MoPub [2] - In 2023, AppLovin's revenue increased by 17%, returning to profitability as the digital advertising market stabilized [2] - In 2024, revenue surged by 43%, net income increased by 343%, and adjusted EBITDA rose by 81%, driven by AI-powered services [3] - Analysts project a compound annual growth rate (CAGR) of 20% for revenue and 31% for adjusted EBITDA from 2024 to 2027 [4] Group 2: Market Capitalization Projections - If AppLovin meets growth expectations, its market cap could rise by 44% to 154 billion by 2027, but could also decrease by 24% to 81billionifittradesatalowervaluation[5]−AppLovin′scurrentmarketcapis81 billion if it trades at a lower valuation [5] - AppLovin's current market cap is 107 billion, trading at 19 times this year's sales [4] Group 3: Baidu Overview - Baidu, with a market cap of 33billion,faceschallengesfromcompetitionandchangingsearchbehaviors,tradingat9timesforwardearningsand2timesthisyear′ssales[6]−BaidulaunchednewAImodelstoadapttomarketchangesandisexpandingitsmobileapp,whichhad679millionmonthlyactiveusersbytheendof2024[7]−In2024,Baidu′srevenuedippedby133 billion, faces challenges from competition and changing search behaviors, trading at 9 times forward earnings and 2 times this year's sales [6] - Baidu launched new AI models to adapt to market changes and is expanding its mobile app, which had 679 million monthly active users by the end of 2024 [7] - In 2024, Baidu's revenue dipped by 1%, but cost-cutting measures boosted EPS by 20% [8] - Analysts expect Baidu's revenue and EPS to grow at a CAGR of 4% and 2% from 2024 to 2026, with potential for further growth if AI initiatives succeed [8] Group 4: CrowdStrike Overview - CrowdStrike, a leading cybersecurity company, has a market cap of 90 billion and offers cloud-based endpoint security services [9] - From fiscal 2021 to fiscal 2025, CrowdStrike's revenue and adjusted EBITDA grew at a CAGR of 46% and 79%, respectively [10] - Analysts project a CAGR of 22% for revenue and 20% for adjusted EBITDA from fiscal 2025 to fiscal 2028, with profitability expected in fiscal 2027 and 2028 [10] - If CrowdStrike meets expectations, its market cap could increase by over 50% to $138 billion by fiscal 2028 [11]