AppLovin Corporation (APP) Delivered Exceptional Gains in Q3

Bailard Inc., an investment management company, released its third-quarter 2025 investor letter for “Bailard Technology Strategy”. A copy of the letter can be downloaded here. The strategy generated 9.36% net of fees in the quarter compared to the S&P North American Technology Index’s 13.14% return, the Morningstar U.S. Open-End Technology Categories’ 11.64% return, and the Lipper Science and Technology Fund Index’s 11.19% gain. The quarter showed improved technology fundamentals following the Q2 market rebound, driven by structural demand trends and evolving regulations across key verticals. In addition, please check the fund’s top five holdings to know its best picks in 2025.

In its third-quarter 2025 investor letter, Bailard Technology 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 14.54%, and its shares gained 112.96% of their value over the last 52 weeks. On December 26, 2025, AppLovin Corporation (NASDAQ:APP) stock closed at $714.23 per share, with a market capitalization of $241.588 billion.

Bailard Technology Strategy stated the following regarding AppLovin Corporation (NASDAQ:APP) in its third quarter 2025 investor letter:

"AppLovin Corporation (NASDAQ:APP) (+160 bps; +105.25%) – Exceptional growth in mobile game advertising and programmatic AdTech fueled outsized performance. Expansion into ecommerce markets further strengthens its outlook into 2026."

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 stocks to invest in for the next 3 years. 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.