Building on its momentum as one of the best stocks of 2024 alongside Palantir Technologies, artificial intelligence-infused AppLovin has just popped back to the top of its latest buy range. And AppLovin stock joins Magnificent Seven members Nvidia and Alphabet on the Investor's Business Daily Leaderboard.
Wall Street continues to show demand for the Palo Alto, Calif.-based firm, which helps digital app developers market, monetize, analyze and publish their creations. After making July's list of new buys by the best mutual funds, AppLovin returned to this screen again this month. Fellow AI stocks to watch Nvidia, Palantir and Microsoft also made the latest list. It also sports a B+ Accumulation/Distribution Rating and a 1.3 up/down volume ratio.
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AI Fuels Explosive Growth For AppLovin
Over the last three quarters, AppLovin has generated average earnings growth of 185%. That includes a 153% spike to $2.28 per share last quarter.
Sales just accelerated for a fourth straight quarter, rising 77% to go past $1.25 billion.
For the third quarter, analysts forecast 12% sales growth to just under $1.34 billion and 90% earnings growth to $2.37 per share. For the full year, Wall Street expects a 103% rise in earnings to $9.19 per share.
But the most imminent earnings report to watch right now comes from Nvidia. With earnings on tap Wednesday, analysts expect the AI juggernaut is on tap to release to deliver a 48% spike in earnings to $1.01 per share. How Nvidia actually reports — and how Wall Street reacts — is likely to impact AI stocks like AppLovin and the market indexes as a whole.
AppLovin Stock Clears One Buy Range — And Eyes Another
Action among leading AI stocks has been mixed since the tech-heavy Nasdaq flashed signs of volatility earlier this month.
Palantir has found support at its 50-day moving average, while Microsoft has sliced below that benchmark. Google stock hit an all-time high Monday before edging lower Tuesday. And Nvidia has jumped back above its 21-day exponential moving average with all eyes now on tomorrow's earnings.
Meanwhile, AppLovin stock has bounced back into buy range and then some. Like Nvidia, it recently retook its 21-day line.
Up over 4% Tuesday, the AI-fueled Leaderboard member now trades just above its 428.99 to 450.44 buy range in a first-stage cup pattern. The megacap tech also recently formed a new handle with a 473.70 entry. That would serve as an alternate buy point.
AppLovin closed Tuesday's session just shy of the alternative entry.
Follow Matthew Galgani on X (formerly Twitter) at @IBD_MGalgani.
