AppLovin (APP) Surged Spurred By Broad-Based Growth Drivers

BlackRock, an investment management company, released its third-quarter 2025 investor letter for “BlackRock Science and Technology Term Trust”. A copy of the letter can be downloaded here. The BlackRock Science and Technology Term Trust (BSTZ) is a closed-end fund focused on investing in the technology sector. In Q3, the fund returned 10.1% on market price and 11.6% on net asset value (NAV) compared to the MSCI Custom ACWI SMID Growth IT Call Overwrite Index’s 15.2%. During the quarter, the trust adjusted its investments in the technology sector to align with changing market conditions and emerging opportunities. Additionally, please review the fund’s top five holdings to see its leading picks in 2025.

In its third-quarter 2025 investor letter, BlackRock Science and Technology Term Trust 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 7.02%, and its shares gained 115.80% of their value over the last 52 weeks. On December 29, 2025, AppLovin Corporation (NASDAQ:APP) stock closed at $698.82 per share, with a market capitalization of $236.17 billion.

BlackRock Science and Technology Term Trust stated the following regarding AppLovin Corporation (NASDAQ:APP) in its third quarter 2025 investor letter:

"Within the portfolio, investments in software and internet subsectors contributed the most to relative returns. The software subsector benefited from a strong rebound in AI associated names in Q3 driven by strong AI (Artificial Intelligence) CAPEX (Capital Expenditure) commitments and robust earnings. Meanwhile, the internet space saw gains driven by a combination of macroeconomic tailwinds and strong earnings from major players.

An off-benchmark position in AppLovin Corporation (NASDAQ:APP) (%), an ad-technology company specializing in AI-driven mobile marketing solutions, was another contributor during the quarter. Shares advanced following strong quarterly results and its inclusion in the S&P 500 index, alongside ongoing momentum in its AI powered advertising engine."

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 Bailard Technology Strategy's views on the company. 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.