What Makes AppLovin Corporation (APP) a Go-To Stock for Investors?

Scout Investments, Inc., an affiliate of Carillon Tower Advisers, recently released its third-quarter 2025 investor letter for “Carillon Scout Mid Cap Fund”. A copy of the letter can be downloaded here. The Russell Midcap Index posted positive returns in the quarter, fueled by strong corporate earnings, the continued momentum in artificial intelligence (AI) infrastructure, and the anticipation of the U.S. Federal Reserve’s (Fed) interest rates. In addition, please check the fund’s top five holdings to know its best picks in 2025.

In its third-quarter 2025 investor letter, Carillon Scout Mid Cap Fund 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 5.83%, and its shares gained 74.74% of their value over the last 52 weeks. On December 02, 2025, AppLovin Corporation (NASDAQ:APP) stock closed at $653.00 per share, with a market capitalization of $220.68 billion.

Carillon Scout Mid Cap Fund stated the following regarding AppLovin Corporation (NASDAQ:APP) in its third quarter 2025 investor letter:

"AppLovin Corporation (NASDAQ:APP) is a mobile application advertising technology provider that has one of the most advanced mediation and attribution platforms. The stock performed well following a strong earnings outlook, and investors began to better understand AppLovin’s growth potential in its core mobile gaming applications technology and its emerging ecommerce advertising opportunity. Industry checks indicate impressive early market share gains in ecommerce advertising, and we expect AppLovin’s self-serve model rollout in October to become a meaningful catalyst for the business."

AppLovin Corporation (NASDAQ:APP) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 110 hedge fund portfolios held AppLovin Corporation (NASDAQ:APP) at the end of the third quarter, which was 109 in the previous quarter. In Q3 2025, AppLovin Corporation’s (NASDAQ:APP) revenue increased 68% from last year to approximately $1.405 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 best performing AI stocks heading into 2026. In addition, please check out our hedge fund investor letters Q3 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.