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3 Growth Stocks That Have Dwarfed Nvidia's Returns Over the Past 12 Months
APPApplovin(APP) The Motley Fool·2025-04-03 13:45

Summary of Key Points Core Viewpoint - The excitement surrounding Nvidia is diminishing, with its shares down 19% since the start of 2025, attributed to high valuation, economic concerns, tariffs, and potential tech spending slowdowns [1]. Nvidia Performance - Over the past 12 months, Nvidia's stock has only risen by 20%, which is lower than expected given the growth opportunities in AI [2]. Comparison with Other Stocks - Summit Therapeutics has seen a remarkable increase of 366%, driven by the anticipation of its cancer drug ivonescimab, despite not having an approved product [3][4]. - Rocket Lab USA's stock has increased by 335%, with a revenue growth of 78% to 436millionanda60436 million and a 60% increase in launches [8]. - AppLovin's stock has risen by 283%, with a revenue growth of 43% to over 4.7 billion, but faces scrutiny from short sellers [12][14]. Summit Therapeutics - The high valuation of Summit Therapeutics at over 14billionisbasedonthepotentialapprovalofivonescimab,whichhasshownpromisingtrialresults[4][5].−Thedrug′sapprovalisuncertainasthetrialwasconductedinChina,raisingconcernsaboutitssafetyandeffectivenessforadiversepopulation[6].RocketLabUSA−RocketLabachieved16launchesin2024,markinga6014 billion is based on the potential approval of ivonescimab, which has shown promising trial results [4][5]. - The drug's approval is uncertain as the trial was conducted in China, raising concerns about its safety and effectiveness for a diverse population [6]. Rocket Lab USA - Rocket Lab achieved 16 launches in 2024, marking a 60% increase, and is preparing for the launch of its larger Neutron rocket [8][9]. - Despite strong growth, Rocket Lab is not yet profitable, incurring losses of over 190 million last year, and has a market cap exceeding 8billion[10].AppLovin−AppLovin′sgrowthhasbeenhinderedbynegativereportsfromshortsellers,althoughithasshownsignificantrevenuegrowthandnetincomeincrease[13][14].−Thecompany′shighvaluationofover8 billion [10]. AppLovin - AppLovin's growth has been hindered by negative reports from short sellers, although it has shown significant revenue growth and net income increase [13][14]. - The company's high valuation of over 90 billion raises concerns, especially in light of potential economic slowdowns due to tariffs and trade wars [15].