AppLovin Corporation (APP): Among Billionaire Israel Englander's Stock Picks with Huge Upside Potential

We recently published a list of Billionaire Israel Englander’s 10 Stock Picks with Huge Upside Potential. In this article, we are going to take a look at where AppLovin Corporation (NASDAQ:APP) stands against other billionaire Israel Englander’s stock picks with huge upside potential.

Millennium Management is a globally recognized investment firm specializing in multi-strategy hedge fund offerings. Founded in 1989 by Israel A. Englander and Ronald Shear, the firm initially launched with $35 million in capital, including a $5 million contribution from Englander and additional investment secured from Canadian financiers, the Belzberg brothers. Despite early struggles that led to Shear’s departure just six months after its inception, Millennium evolved into one of the largest and most successful alternative asset management firms. As of late 2024, it boasts over $75.8 billion in assets under management.

Headquartered in New York, Millennium has expanded its operations globally, establishing 18 primary offices in major financial hubs including London, Dubai, Singapore, and Tokyo. The firm employs a platform-based investment approach, with approximately 330 independent investment teams operating under a decentralized model. These teams deploy a wide array of strategies across multiple asset classes, including equities, fixed income, commodities, and derivatives. Millennium’s core strategies focus on fundamental equity research, equity arbitrage, macroeconomic-driven fixed income investments, and commodity-based trades. Through this highly diversified, data-driven model, the firm aims to generate consistent, high-quality returns while managing risk effectively across global markets.

Under the leadership of Israel Englander, who remains the driving force behind the firm, Millennium has cultivated a disciplined risk management framework and continuously refined its investment strategies. A graduate of New York University who left his MBA program early to trade on the American Stock Exchange, Englander applied his market-making and derivatives trading expertise to build Millennium into an institutional powerhouse. His innovative approach emphasizes capital allocation to specialized teams rather than direct investment decisions, fostering a dynamic and competitive investment environment that attracts top talent from around the world. By 2011, Millennium was managing approximately $13 billion in assets, and in recent years, Englander has explored opportunities to sell a minority stake in the firm, signaling a move toward broader institutional ownership.

As of the fourth quarter of 2024, Millennium reported managing $204.64 billion in 13F securities, with its top ten holdings accounting for 15.5% of its portfolio. It has consistently ranked among the highest-grossing hedge funds, achieving the fourth-largest net gains of any hedge fund since inception. Millennium’s commitment to generating superior risk-adjusted returns, maintaining a diversified investment approach, and embracing strategic innovation has earned it a formidable reputation among institutional investors. With its expansive global presence, proven track record, and disciplined investment philosophy, Millennium Management continues to be a dominant force in the global hedge fund industry.

Our Methodology

For this article, we searched through Millennium Management’s Q4 2024 13F filings to identify billionaire Israel Englander’s stock picks with the highest upside potential. We compiled the equities with upside potential higher than 33% based on analyst ratings and discussed why they stood out as sound potential investments. Finally, we ranked the stocks based on the ascending order of their upside potential. To assist readers with more context, we mentioned the hedge fund sentiment around each stock using data from 1,009 hedge funds tracked by Insider Monkey in the fourth quarter of 2024.

Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 363.5% since May 2014, beating its benchmark by 208 percentage points (see more details here).

AppLovin Corporation (NASDAQ:APP)

Number of Hedge Fund Holders as of Q4: 95

Millennium Management’s Equity Stake: $492.02 Million 

Upside Potential as of April 26: 69.93%

AppLovin Corporation (NASDAQ:APP), a leading mobile technology company headquartered in Palo Alto, California, specializes in helping developers market, monetize, and analyze their apps through platforms such as MAX, AppDiscovery, and SparkLabs. In its most recent financial results, AppLovin reported strong growth, with Q4 2024 revenue rising 44% year-over-year to $1.37 billion and net income surging 248% to $599.2 million. For the full year, total revenue increased 43% to $4.71 billion, while net income climbed an impressive 343% to $1.58 billion.

The company’s advertising segment was the primary driver of this success, with Q4 advertising revenue jumping 73% year-over-year to $999.5 million and full-year advertising revenue increasing 75%. Although the apps revenue segment saw a slight 1% decline in Q4, it still achieved a 3% increase annually. AppLovin Corporation (NASDAQ:APP) also demonstrated strong financial discipline by executing significant share buybacks, retiring and withholding 1.6 million shares in Q4 and 25.7 million shares over the full year, totaling $2.1 billion. The company generated $701 million in net cash from operating activities in Q4 and $2.1 billion for the year, with free cash flow closely mirroring these figures, underscoring its financial strength.

Looking ahead to the first quarter of 2025, AppLovin Corporation (NASDAQ:APP) has issued an optimistic outlook, projecting revenue between $1.355 billion and $1.385 billion. The company also anticipates an adjusted EBITDA of $855 million to $885 million, reflecting a strong margin of 63% to 64%.

In the fourth quarter of 2024, Millennium Management expanded its stake in AppLovin Corporation (NASDAQ:APP) to over 1.5 million shares, reflecting a 114% increase from the previous quarter. This holding, now valued at approximately $492 million, is second on billionaire Israel Englander’s list of stock picks with huge upside potential. Institutional interest in the stock also surged, with 95 out of 1,009 hedge funds tracked by Insider Monkey holding positions worth nearly $11.96 billion by the end of Q4, up from 51 funds in the prior quarter. The growing hedge fund investment highlights strong confidence in AppLovin’s growth potential.

Carillon Eagle Mid Cap Growth Fund stated the following regarding AppLovin Corporation (NASDAQ:APP) in its Q1 2025 investor letter:

“AppLovin Corporation (NASDAQ:APP) is a platform for mobile application developers to grow their apps through user acquisition, monetization, and analytics. The company continued to report healthy growth and provided guidance indicating robust future growth, thanks to the strong reception of its latest tools by existing customers and its expansion into new verticals. However, post-earnings, shareholders became concerned about a short seller’s report questioning data collection practices. Management addressed these issues thoroughly, but lingering questions and general tariff related news impacting the broader market have compounded concerns.”

Overall, APP ranks 2nd on our list of billionaire Israel Englander’s stock picks with huge upside potential. While we acknowledge the potential of these stock picks, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than APP but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock.

READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.

Disclosure: None. This article is originally published at Insider Monkey.