The 2 Best Nasdaq-100 Stocks to Buy Now, According to Wall Street

Wall Street's median 12-month targets imply 86% upside for AppLovin ($500 vs. $268) and 69% for Axon ($700 vs. $413), as of Oct. 4. AppLovin's Q2 revenue rose 53% to $1.9 billion and GAAP net income per diluted share rose 57% to $3.76, although it narrowly missed revenue estimates; management's Q3 revenue midpoint implies 47% growth. Axon beat Q2 estimates, with revenue reported as $904 billion, up 35%, and non-GAAP EBITDA up 41% to $242 million; it also raised full-year guidance, implying 33% revenue growth in 2026. The article notes Axon's 61-times adjusted-earnings valuation and recommends keeping positions in both stocks relatively small.

Analysis

The analyst-target upside is not an investment catalyst: it is a snapshot of expectations, and the article supplies no target dispersion, estimate revisions, or valuation sensitivities. The investable question is whether operating momentum can outrun elevated expectations.

APP has the clearer near-term operating leverage if its newer e-commerce channel and generative-AI tools broaden advertiser demand beyond its established mobile-gaming base. The second-order risk is that success attracts more budget competition from Meta and Google, while any deterioration in measurable ad returns could weaken customer spend and the data feedback loop the thesis relies on. Verify revenue mix, customer concentration, and performance by channel; consolidated growth alone cannot establish that diversification is working.

AXON’s software and evidence-management ecosystem may deepen customer retention and support recurring revenue, but AI features also raise procurement, privacy, and reliability scrutiny. Hardware adoption can seed software expansion, yet public-sector purchasing cycles may slow conversion. Motorola Solutions is a relevant competitive monitor. The article’s valuation framing makes execution disappointments more consequential for AXON’s multiple than for the relative thesis on APP.

Over the next 1–3 months, earnings revisions and guidance matter more than median targets. Over 6–18 months, test whether APP’s newer channel scales and whether AXON converts AI interest into paid adoption and durable software growth. The article contains apparent data inconsistencies, including AXON revenue units and a future-dated guidance reference; verify filings and dates before sizing positions.

Key Decisions for Investors

• APP: Consider a small, staged long rather than buying solely on the quoted target upside. Add only if the next results support continued growth and show evidence that e-commerce contributes meaningfully; reassess if guidance or advertiser-return metrics weaken, or if channel concentration remains high.
• AXON: Avoid chasing at the cited valuation; keep on a watchlist for a material pullback or stronger evidence of software/AI monetization. A 15–20% decline is a potential review point, not an automatic buy signal; confirm growth, margins, and customer adoption first.
• Prefer APP over AXON for incremental exposure to these two names, but do not treat that relative preference as a short-AXON recommendation absent a near-term catalyst. Track estimate revisions, valuation spread, and earnings reactions.
• Before trading, verify the article’s reporting period, AXON revenue units, current prices, and latest guidance against company filings. Falsify the APP thesis on sustained growth or guidance deterioration; challenge AXON’s premium thesis if software growth or paid AI adoption fails to translate into reported results.