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stocks we like better than AppLovin ›The S&P 500 is often used as the benchmark index for the stock market as a whole.While the index only contains 500 companies, it represents about 80% of all U.S. equities by market capitalization. Becoming a member requires more than just a large market cap, though. Companies must also show consistent profits, and their stocks must also have sufficient liquidity.Every quarter, a selection committee decides who's in and who's out. If a company in the S&P 500 fails to meet the criteria, it'll get booted from the index. If its value drops too much, the committee will remove it as well. The committee then selects a batch of new entrants to replace those leaving the index.This quarter, the committee added digital advertising company AppLovin (NASDAQ: APP) to the S&P 500. The company, along with Robinhood Markets and Emcor, will replace MarketAxess, Caesars Entertainment, and Enphase Energy on Sept. 22.AppLovin is the most recent AI stock to join the S&P 500, which is already full of AI giants. While the stock has soared more than 55-fold since the start of 2023, it could still climb higher from here. Here's what investors need to know.Image source: Getty Images.AppLovin offers marketers a simple solution for getting great returns on their advertising spend. The adtech company takes a marketer's budget, its target market, and its desired return on ad spend, and effectively targets ads across its supply network to hit those marks. Importantly, AppLovin doesn't get paid unless the ads work based on third-party measurement data.The entire process is managed by its Axon 2 advertising optimizer. Axon 2 is built on machine learning AI models that use years of first-party data gathered from AppLovin's own games (which it divested this year) and previous ad placements.Axon 2 went live in the first quarter of 2023, and the results have been impressive. AppLovin has seen its software platform revenue climb from just over $1 billion in 2022 to $4.25 billion over the last four quarters.What's more, AppLovin is expanding its business beyond in-game ads. It's adding connected-TV advertising through its acquisitions of Wurl and MoPub, and it's building an e-commerce advertising engine.Terms and Privacy PolicyPrivacy & Cookie SettingsMore InfoS&P Futures6,713.50 -9.00 (-0.13%)Dow Futures46,564.00 -87.00 (-0.19%)Nasdaq Futures24,839.50 -26.75 (-0.11%)Russell 2000 Futures2,465.10 -1.20 (-0.05%)VIX15.45 -0.25 (-1.59%)Gold3,723.90 +18.10 (+0.49%)PortfolioSign in to access your portfolioSign inTop gainersOKLO Oklo Inc. 135.23 +30.26 (+28.83%)BHF Brighthouse Financial, Inc. 57.59 +12.33 (+27.24%)QUBT Quantum Computing Inc. 23.27 +4.92 (+26.81%)MENS Jyong Biotech Ltd. 65.62 +13.87 (+26.80%)SMR NuScale Power Corporation 46.77 +8.65 (+22.69%)Top losersDXCM DexCom, Inc. 67.45 -8.33 (-10.99%)HESM Hess Midstream LP 35.36 -4.12 (-10.44%)CART Maplebear Inc. 41.50 -3.90 (-8.59%)ORLA Orla Mining Ltd. 10.22 -0.85 (-7.68%)RXO RXO, Inc. 16.14 -1.31 (-7.51%)Most activeNVDA NVIDIA Corporation 176.60 +0.36 (+0.20%)OPEN Opendoor Technologies Inc. 9.57 -0.37 (-3.72%)INTC Intel Corporation 29.58 -0.99 (-3.24%)HOOD Robinhood Markets, Inc. 124.78 +3.87 (+3.20%)WBD Warner Bros. Discovery, Inc. 19.33 +0.63 (+3.37%)Earnings eventsMy earnings eventsEarnings eventsTrending tickersNQ=F Nasdaq 100 Dec 25 24,866.25 +160.75 (+0.65%)OKLO Oklo Inc. 135.23 +30.26 (+28.83%)SI=F Silver Dec 25 42.95 +0.83 (+1.98%)ES=F E-Mini S&P 500 Dec 25 6,722.50 +29.00 (+0.43%)SMR NuScale Power Corporation 46.77 +8.65 (+22.69%)Top economic events