History Says the Nasdaq Will Soar: 2 AI Stocks to Buy Now
- The Nasdaq Composite has surged by 875% in the last 20 years, thanks to tech stock strength.
- AppLovin’s median target price suggests a 40% upside from its current price.
- MongoDB’s median target price implies a potential 34% increase from its current trading status.
- AppLovin’s impressive 40% revenue growth highlights its strong market position.
- MongoDB reported a 22% revenue hike, showcasing its rising customer base and demand.
- Investors are advised to act on promising valuations for AppLovin and MongoDB.
Long-term trends benefit from tech market growth
Anticipating stock market movements always seems like throwing darts blindfolded. It’s tricky, sometimes, downright impossible, but investors often find refuge in long-term trends. For example, the Nasdaq Composite has had a dazzling performance over the last 20 years, skyrocketing by an impressive 875%, reflecting a robust annual compound growth rate of 12%, largely driven by technology stocks. Given this backdrop, some on Wall Street are optimistic that the future could see similar gains, especially given the exciting rise of artificial intelligence (AI).
AppLovin showcases impressive growth and AI integration
Two standout stocks in the AI arena are grabbing attention: AppLovin and MongoDB, and analysts are singing their praises. For AppLovin, which is an ad tech powerhouse, analysts project a median price target of $470 a share, a solid 40% upside from its current trading price around $335. The company has invested significantly in a powerful AI engine named Axon, enhancing its ad targeting capabilities to match advertisers with the optimal publisher space. This investment seems to be paying off; AppLovin’s most recent financials revealed a 40% leap in revenue to $1.4 billion, showing robust growth, particularly in advertising, even as sales in mobile gaming shook out a bit.
MongoDB capitalizes on demand for document databases and AI
Turning to MongoDB, this company leads the way in document databases, proving itself flexible and scalable in a digital age obsessed with data. Analysts forecast a 34% upside to a median target price of $275, given its current trading rate of about $205. MongoDB’s recent moves into AI, including the launch of its MAAP (MongoDB AI Application Program), are exciting developments for investors. Their latest financials also exceeded analyst expectations, with revenue growth reaching 22%, hitting $549 million. With a rising customer base hitting over 57,000 and its non-GAAP earnings jumping by a whopping 96%, MongoDB showcases the explosive potential of adapting to the demands of AI.
Valuation insights suggest timely investments to consider
As for valuations, investors are certainly watching closely. AppLovin’s current earnings valuation of 61 times may seem rich, but the projected earnings increase of 53% per annum through to 2026 suggests it might be a ripe opportunity. Similarly, MongoDB’s valuation standing at about 7.8 times sales is a bargain compared to its historical three-year average of 13.2 times. Savvy investors who are patient could very well turn these small initial positions into significant holdings in the long run. It’s all about navigating these waters just right, combining insights with timing.
In summary, both AppLovin and MongoDB exhibit strong growth metrics and promising futures with their applications of AI. Investors who recognize the potential here should consider taking a small position in either company. Given their impressive projections, now seems as good a time as any to seize opportunities in these tech stocks.
