1 AI Stock to Buy Now -- It Has Doubled Palantir's 2,280% Return Since 2023 and Is Joining the S&P 500 in September

Core Insights - AppLovin's advertising business is experiencing rapid growth, driven by its proprietary AI engine, Axon [1][10] - The company will be added to the S&P 500 on September 22, 2023, with its stock having increased by 4,560% since January 2023 [1][2] - Wall Street analysts project a 12-month target price of $514 per share, indicating a potential upside of 5% from the current price of $490 [2] Company Performance - AppLovin reported a 77% increase in revenue to $1.2 billion and a 168% rise in GAAP net income to $2.39 per diluted share in Q2 [10] - The company is expected to grow earnings at an annual rate of 54% through 2026, making its current valuation of 70 times earnings appear reasonable [11] Market Position - AppLovin operates in a highly competitive digital advertising industry, competing against larger companies like Google, Meta Platforms, and Amazon [12] - The launch of Axon 2.0 and new e-commerce and self-service advertising solutions are anticipated to be significant growth catalysts for the company [12] S&P 500 Inclusion - Historically, stocks added to the S&P 500 tend to see an average return of 13.9% in the 12 months following their inclusion [6][8] - The addition to the S&P 500 is expected to enhance investor sentiment and visibility for AppLovin [7][8]