AppLovin (APP) Rallied Following the Robust Operating Results

Renaissance Investment Management, an investment management company, released its Q3 2025 “Large Cap Growth Strategy” investor letter. A copy of the letter can be downloaded here. Stock prices continued to rally in the third quarter, with the S&P 500 climbing to all-time highs during September. The Russell 1000 Growth returned 10.5% and the S&P 500 returned 8.1% in the quarter. However, the strategy underperformed both the Russell 1000 Growth benchmark and the S&P 500. For more information on the fund’s top picks in 2025, please check its top five holdings.

In its third-quarter 2025 investor letter, Renaissance Large Cap Growth 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 -9.72%, and its shares gained 286.98% of their value over the last 52 weeks. On October 27, 2025, AppLovin Corporation (NASDAQ:APP) stock closed at $643.10 per share, with a market capitalization of $217.529 billion.

Renaissance Large Cap Growth Strategy stated the following regarding AppLovin Corporation (NASDAQ:APP) in its third quarter 2025 investor letter:

“In the third quarter, AppLovin Corporation (NASDAQ:APP) was the largest contributor to portfolio performance. The stock reacted positively to solid operating results that were driven by strong mobile gaming trends. AppLovin also demonstrated solid momentum in growing its e-commerce platform, with strong demand from advertisers who want to join the platform. Importantly, data-driven improvements are powering an exponential increase in the amount of data accumulation that is integral to the development and refinement of the company’s artificial intelligence models.”

AppLovin Corporation (APP) Is A "Cash Flow Machine," Says Jim Cramer

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 risk and potential of AppLovin Corporation (NASDAQ:APP) as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than AppLovin Corporation (NASDAQ:APP) and that has 10,000% upside potential, check out our report about this cheapest AI stock.

In another article, we covered AppLovin Corporation (NASDAQ:APP) and shared the list of most promising AI stocks to buy. AppLovin Corporation (NASDAQ:APP) was the standout performer of ClearBridge Mid Cap Growth Strategy in Q3 2025. 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.