Stocks and cryptocurrencies both offer investment opportunities, but they differ significantly in their nature, risks, and potential returns. The best choice for you depends on your individual financial goals and risk tolerance. However, it's well worth noting that you don't have to put cash into riskier assets like crypto to gain the returns you desire.
If you have cash to put into stocks and a sufficient time horizon (three to five years at least but preferably longer) to let your investments grow for you, here are two tech names to consider that look to have considerably more potential than any cryptocurrency.
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1. GitLab
GitLab (GTLB 4.24%) is a comprehensive DevSecOps platform. DevSecOps is a software development approach that incorporates certain security practices into every phase of the software development lifecycle. GitLab's platform provides a single application for source code management, continuous integration and development, security, and operations, which eliminates the need for organizations to leverage multiple fragmented tools.
NASDAQ: GTLB
Key Data Points
The company boasts a wide range of clients, from large enterprises to small and medium businesses across various industries ranging from financial services to software development to aerospace and defense. GitLab primarily makes money through subscription-based software-as-a-service (SaaS) products. The company offers a free, open-source version, but frequently converts users to paying subscribers for premium features and services.
GitLab is integrating artificial intelligence (AI) throughout its DevSecOps platform with a suite of AI-powered features called GitLab Duo. GitLab Duo offers capabilities such as helping developers with real-time code completion or to better understand security vulnerabilities. The platform's GitLab Duo chat is a conversational AI assistant that can explain code, suggest improvements, and even generate code, tests, or documentation.
GitLab's $214.5 million in revenue in the first quarter of fiscal 2026 (ended April 30) marked a 27% increase year over year. The company also achieved a non-GAAP (generally accepted accounting principles) operating margin of 12% and operating cash flow of $106.3 million. Adjusted free cash flow nearly tripled compared to the prior year, and the company narrowed its GAAP losses although it is still unprofitable to the tune of about $35.9 million.
GitLab's customers with more than $5,000 of annual recurring revenue (ARR) reached 10,104 in Q1, up 13% year over year, while the cohort of customers with more than $100,000 of ARR reached 1,288, a 26% year-over-year spike. The company's overall dollar-based net retention rate was 122% in the three-month period.
Rising competition in GitLab's industry and concerns about its growth story have weighed on the stock price of late. However, strategic investments in AI, such as GitLab Duo, are attracting new customers and expanding adoption among existing ones as the platform integrates AI throughout its ecosystem. Overall, GitLab is well positioned to capitalize on the growing demand for comprehensive AI-driven DevSecOps platforms and long-term investors could benefit in the process.
2. AppLovin
AppLovin (APP 2.56%) is an advertising technology company that provides a platform for app developers to market, monetize, and analyze their apps. Its adtech platform is known for its effectiveness in the mobile gaming market.
However, AppLovin is strategically expanding into new verticals to unlock a much larger total addressable market. The increasing use of smartphones and connected TV (CTV) platforms, along with a rise in online shopping, is fueling demand for mobile and CTV advertising, all of which are trends that AppLovin is well positioned to capitalize on.
The company primarily makes money through its software platform, which helps developers find advertisers and vice versa, so it earns most of its revenue from advertising fees. AppLovin's core strength lies in its AI-powered Axon engine. This engine continually refines ad targeting and placement, leading to higher efficiency and better returns for advertisers.
NASDAQ: APP
Key Data Points
AppLovin had a very robust start to the year in Q1 2025, as revenue reached $1.48 billion, a 40% increase compared to the same period last year. Advertising revenue saw a significant boost, increasing 71% year over year to $1.16 billion. This growth was attributed to improvements in its machine learning models for mobile gaming and the initial success of its web advertising strategy.
Adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) surged 83% to a record $1.01 billion. Meanwhile, free cash flow grew by 113% year over year to $826 million. AppLovin also finalized an agreement to sell its mobile gaming business to Tripledot Studios as it continues to pivot its efforts to focus on its high-growth advertising platform.
AppLovin has had a mind-blowing run-up of more than 460% over the trailing 12 months. While long-term investors shouldn't necessarily expect share price performance of that caliber over the next 12 months, there are plenty of reasons to remain bullish on this business over the next several years and well beyond.
