Why Tech Stocks Like GitLab and AppLovin Outperform Cryptocurrencies for Long-Term Growth

The debate between investing in high-growth tech stocks and speculative cryptocurrencies has never been more relevant. While Bitcoin and Ethereum have captured headlines with their explosive returns, companies like GitLab (GTLB) and AppLovin (APPLOVIN) are building durable, AI-driven platforms that offer predictable revenue streams, scalable business models, and tangible use cases. For investors seeking long-term growth with lower volatility, these tech stocks present a compelling case over crypto's speculative allure.

Structural Growth Drivers: SaaS and AdTech vs. Crypto's Uncertainty

GitLab and AppLovin are emblematic of two of the most robust sectors in the tech industry: software-as-a-service (SaaS) and AI-powered adtech. GitLab, a leader in DevSecOps, has leveraged AI to integrate security and operational efficiency into its platform, enabling enterprises to accelerate software delivery while reducing risk. Its Q2 2025 results—$182.6 million in revenue (31% YoY growth) and expanding operating margins—highlight the scalability of SaaS. With a beta of 0.74, GitLab's stock is less volatile than the broader market, offering a stable foundation for long-term investors.

AppLovin, meanwhile, has pivoted from gaming to AI-driven adtech, shedding its Apps business for $400 million to focus on high-margin advertising solutions. Its Q2 2025 revenue surged 77% to $1.26 billion, with adjusted EBITDA nearly doubling to $1.02 billion and an operating margin of 76.1%. The company's strategic shift has unlocked a business model with recurring revenue and high cash flow generation, contrasting sharply with crypto's lack of recurring value propositions.

Risk-Adjusted Returns: Predictability vs. Volatility

Cryptocurrencies like Bitcoin and Ethereum have delivered eye-popping returns in Q2 2025 (30.7% and 36.4–37.7%, respectively), but their volatility remains a double-edged sword. Bitcoin's beta of 1.4–1.5 and Ethereum's closer alignment with the S&P 500 indicate growing correlation with equities, yet their price swings—driven by speculative flows and macroeconomic shifts—make them inherently riskier. For example, Bitcoin's price range in Q2 hovered near $100,000, but its beta suggests it remains more sensitive to market downturns than diversified tech stocks.

In contrast, GitLab's beta of 0.74 and AppLovin's stable cash flow generation (despite a 4.02% premarket drop post-earnings) reflect the resilience of their business models. SaaS and adtech companies benefit from recurring revenue, sticky customer relationships, and defensible moats—factors that cryptocurrencies lack. AppLovin's free cash flow of $768 million in Q2 2025, for instance, provides a buffer against macroeconomic headwinds, whereas crypto's value is tied to sentiment and regulatory clarity.

Tangible Use Cases: From Code to Ads

The strength of GitLab and AppLovin lies in their tangible, real-world applications. GitLab's AI-powered DevSecOps platform is a critical tool for enterprises navigating the complexities of modern software development. Its focus on security and automation addresses a universal pain point, ensuring demand remains resilient even in economic downturns.

AppLovin's adtech platform, meanwhile, has become a cornerstone for businesses seeking to acquire customers profitably. Its Axon platform, set for a 2026 launch, and international expansion plans underscore its ability to scale AI-driven solutions globally. Unlike crypto, which struggles to define a consistent use case beyond speculative trading, AppLovin's platform delivers measurable value to advertisers and developers alike.

Investment Implications: Balancing Growth and Risk

For long-term investors, the choice between tech stocks and crypto hinges on risk tolerance and growth potential. While crypto's high returns are tempting, its volatility and lack of recurring revenue streams make it a speculative bet. GitLab and AppLovin, by contrast, offer predictable growth through scalable, AI-driven platforms with clear use cases.

GitLab's low beta and expanding margins position it as a defensive growth stock, ideal for portfolios seeking stability. AppLovin's high-margin adtech model and strategic focus on international expansion provide upside potential without the existential risks of crypto. Both companies are also better positioned to capitalize on AI's long-term tailwinds, as enterprises increasingly prioritize automation and data-driven decision-making.

Conclusion: The Case for Tech Stocks

In an era of economic uncertainty, investors should prioritize assets with durable cash flows, structural growth drivers, and low volatility. GitLab and AppLovin exemplify this approach, leveraging AI to build platforms that solve real-world problems and generate predictable returns. While cryptocurrencies may offer short-term excitement, their speculative nature and lack of tangible value make them a less attractive option for long-term, risk-adjusted growth.

For those seeking to future-proof their portfolios, the message is clear: tech stocks with defensible moats and scalable AI-driven models are the superior choice.