Nasdaq just added this tech company to Nasdaq-100 index

Nasdaq announced on Friday that it will be adding AppLovin Corporation (Nasdaq:APP) to the Nasdaq-100 index and the Nasdaq-100 Equal Weighted index. AppLovin will be replacing Dollar Tree (Nasdaq:DLTR), the specialty discounter, in these indexes.

Nasdaq-100 is the index that QQQ, the 2nd most traded ETF in the US, tracks and enables investors to invest in all Nasdaq-100 companies in a single investment vehicle.

AppLovin overview

AppLovin is a platform for marketing mobile apps, and it was founded in 2012 by Adam Foroughi, an Iranian-born American who achieved billionaire status through the value of his shares in the company, which he also serves as its CEO.

The company’s solutions use AI to connect businesses to their targeted audience and expand their user base. AppLovin also provides other solutions, such as an ad network that enables businesses to generate revenue through serving ads on their apps.

AppLovin IPO and performance history 

AppLovin went public on April 15, 2021, by offering 25 million shares at the price of $80 to raise $2 billion, which resulted in a market cap of $28.6 billion at the time. The company’s share price was $290 at the closing of the last trading session with a market cap of $97 billion.

Considering the stock was trading at $10 in the beginning of 2023, it managed to perform an approximate 2,600% growth in under 2 years, with half of that growth happening in the last month as the stock jumped from $145 to $290 after the company reported its surprising earnings for the third quarter of 2024. 

AppLovin financial results for Q3 2024

The company recently announced financial results for the third quarter ended September 30, 2024, and reported a revenue increase of 39% year-over-year, reaching $1.2 billion. The software platform revenue grew 66% year-over-year, resulting in $835 million in revenue. AppLovin’s shareholders letter attributed the software revenue growth to the continuing development of their AI-powered ad tech platform, AXON, which the letter says has allowed the customers to increase their ad spend and achieve their return on ad spend goals.

Net income was $434 million, with a net margin of 36% compared to a net income of $109 million and a net margin of 13% in the same quarter for the previous year.

How much would you have if you invested $1,000 in AppLovin stock at IPO?

Using Stoculator's stock calculator, a $1,000 invested in AppLovin’s stock at the time of its IPO would be worth $4,754.26 today (as of November 10, 2024). That's an annual return rate of 54.71% with a total return of 375.43%.

A $1,000 invested in AppLovin’s stock at its low in the beginning of 2023 would be worth $27,027.96 today (as of November 10, 2024). That's an annual return rate of 491.50% with a total return of 2602.80%.

Stoculator's calculator could be used to check the numbers for different periods and investment amounts.