Investing

Ready to Invest $10K—But is AppLovin or SOFI the Better Buy?

Vandita Jadeja

Published: February 14, 2025 11:02 am

For a lot of people, investing means passive income. For many others, it means financial independence and if you are like me, you’d like a blend of both. No matter the long-term financial goal you’re working for, the trick is to start early and start right. Investing in the stock market is a way to grow your money but you need to buy and hold the right stocks. For many, $10K might not be a lot of money but it isn’t too little either. Investing $10K in the right stocks can help grow your money. If you are confused between the hot stocks AppLovin (NASDAQ:APP) and SoFi Technologies (NASDAQ:SOFI), I’m here to help you decide. Let’s discuss both companies in detail.

Key points in this article:

• If you want to invest $10K, two hot companies – SoFi Technologies and AppLovin deserve your attention.
• Both the companies have reported impressive fourth-quarter results and the stock is on a rally.
• If you are looking for more stocks with an upside potential, grab a free copy of brand-new “The Next NVIDIA” report which has a stock we’re confident has 10X potential. 

AppLovin

Many retail investors haven’t heard of AppLovin. It is a company that helps other companies advertise their products and services on mobile phones. Some of the best-known companies have used AppLovin to attract clients in the market. Until now, the company only focused on the gaming segment but will now divest to become a pure advertising platform. The reason behind the company’s success is the changing advertising business. Earlier, companies advertised on newspapers, radio, and television but the internet has transformed the way we consume content.

Even small companies can afford to advertise on social media and mobile apps. Since these apps are targeted to a certain audience, they also generate a higher return on investment.  AppLovin offers unique ways for a company to grow through the right advertisement placement. It uses AI to offer services and ensures a higher return on investment. Yes, mobile apps are fairly new right now but the market is enormous. This means AppLovin is enjoying the first-mover advantage and there is a lot of scope for expansion. Trading for $380, the stock is up 729% in the year and 376% in the last six months.

In the recently announced fourth-quarter results, the company reported a revenue of $1.37 billion, up 44% year-over-year and an EPS of $1.73. The earnings jumped over 250% and the positive results led to a stock rally. Beating expectations, the company proved that its AI-driven platform is generating solid revenue and enjoying high margins. 

The shares are valued at a premium and the company is growing profits at a rapid pace. The upside potential is very high but so is the risk. A stock growing 400% in six months is uncommon and there is always the risk of volatility. AppLovin will suit an investor with a high-risk profile. If you are looking for aggressive growth, this stock should be an ideal pick. 

Analysts have a strong buy rating for the stock with an average price target of $459, a 20% upside from the current level. While the stock already has had a big run, more upside is possible. 

SoFi Technologies 

A hot fintech stock, SoFi Technologies is here to disrupt the way we handle finance. It aims to offer a one-stop solution for individuals to handle finance. With SoFi, you can handle banking, borrowing, investing, and budgeting with a single app. The financial services industry is huge and it is one service that will never die.

Individuals, businesses, and institutions will always need financial services. SoFi started as a student loan lender and has expanded across different verticals now. It aims to offer a digital experience to consumers and this strategy has worked. Its customer base is steadily growing and stands at 10.1 million right now. 

In a mature industry with several competitors, it is not easy to add customers at such a pace and when a company can manage to do that, it is nothing but impressive. The company is generating profits while keeping costs low. It managed to report five straight quarters of positive net income and the same is expected to continue throughout 2025. SoFi’s outlook is positive and the company has impressed investors in each quarterly report. 

Financially, the company has started 2025 in a very strong position. In the fourth quarter, SoFi announced a net revenue of $734.1 million, up 19% year-over-year and an EPS of $0.29. The net interest income for the quarter was $470.2 million, up 21% year-over-year. Its financial services segment saw a net revenue of $256.5 million, up 84% year-over-year and the tech platform segment reported a revenue of $102.8 million, up 6%. The company has also reported a steady growth in lending and tech products in the quarter.

Exchanging hands for $14.77 today, the stock is up 84% in the year and 122% in the past six months. It is moving closer to the 52-week high of $18.42 and could eventually hit the all-time high of $25. SoFi is a solid business but you will need a lot of patience with this stock.

The verdict

While AppLovin and SoFi are lucrative businesses operating in different industries, AppLovin stock is trading at a much higher price than SoFi’s. Both the businesses carry risk and if you are ready to take on this risk, investing in one of these stocks can be a great move. AppLovin stock will have a higher risk and could generate a higher reward while SoFi could be a low-risk investment but it will take longer to see returns. If you want quick returns on your $10K, pick AppLovin.