AppLovin Corporation (APP) Delivered Exceptional Results in Q2

ClearBridge Investments, an investment management company, released its “ClearBridge Select Strategy” second-quarter 2025 investor letter. A copy of the letter can be downloaded here. U.S. equities strongly rebounded in the second quarter. The S&P 500 Index returned 10.9%, and the benchmark Russell 3000 Index advanced 11.0%, as risk-on sentiment took hold following the pause in tariff implementation. The strategy outperformed the benchmark in the quarter, driven by the strength in portfolio construction across companies and sectors with distinct growth drivers. In addition, please check the fund’s top five holdings to know its best picks in 2025.

In its second-quarter 2025 investor letter, ClearBridge Select Strategy highlighted stocks such as AppLovin Corporation (NASDAQ:APP). AppLovin Corporation (NASDAQ:APP) develops a software-based platform for advertisers to enhance the marketing and monetization of their content. The one-month return of AppLovin Corporation (NASDAQ:APP) was 44.87%, and its shares gained 389.24% of their value over the last 52 weeks. On September 17, 2025, AppLovin Corporation (NASDAQ:APP) stock closed at $606.66 per share, with a market capitalization of $205.203 billion.

ClearBridge Select Strategy stated the following regarding AppLovin Corporation (NASDAQ:APP) in its second quarter 2025 investor letter:

We did see good results from AI-ecosystem holdings in IT and industrials. AppLovin Corporation (NASDAQ:APP) delivered exceptional first-quarter results, highlighted by outsize product-led share gains with ad revenue growing 71% year over year driven by the AI-driven advertising algorithm provider’s continued strength in gaming and rising traction in e-commerce.

AppLovin Corporation (NASDAQ:APP) is not on our list of 30 Most Popular Stocks Among Hedge Funds. According to our database, 109 hedge fund portfolios held AppLovin Corporation (NASDAQ:APP) at the end of the second quarter, compared to 96 in the previous quarter. In Q2 2025, AppLovin Corporation's (NASDAQ:APP) revenue increased 77% from last year to approximately $1.260 billion. While we acknowledge the potential of AppLovin Corporation (NASDAQ:APP) as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

In another article, we covered AppLovin Corporation (NASDAQ:APP) and shared the list of AI stocks making waves on Wall Street. In addition, please check out our hedge fund investor letters Q2 2025 page for more investor letters from hedge funds and other leading investors.

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Disclosure: None. This article is originally published at Insider Monkey.