Here’s What Makes AppLovin Corporation (APP) a Standout Performer in Q3

ClearBridge Investments, an investment management company, released its “ClearBridge Mid Cap Growth Strategy” third-quarter 2025 investor letter. A copy of the letter can be downloaded here. The strategy reported modest gains in the challenging environment, driven by monetary policy shifts, stabilizing earnings, and improving investor sentiment.  However, the strategy outperformed the Russell Midcap Growth Index, which returned 2.8%. The firm believes that the Strategy is well-positioned to benefit from its fundamental, bottom-up philosophy even though near-term volatility exists. In addition, please check the fund’s top five holdings to know its best picks in 2025.

In its third-quarter 2025 investor letter, ClearBridge Mid 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 10.22%, and its shares gained 334.76% of their value over the last 52 weeks. On October 8, 2025, AppLovin Corporation (NASDAQ:APP) stock closed at $629.70 per share, with a market capitalization of $212.996 billion.

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

“Within IT, AppLovin Corporation (NASDAQ:APP) was the standout performer. The company, which provides mobile app user acquisition and app monetization platforms, saw its shares surge during the quarter as investors responded positively to strong second-quarter earnings and growing optimism around its emerging e-commerce business, which is expected to launch in the fourth quarter. We believe that its AI driven demand generation capabilities remain best-in-class, positioning the company for incremental cash flow growth.”

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 AI stocks investors are watching closely. AppLovin Corporation (NASDAQ:APP) contributed to ClearBridge Select Strategy’s performance in the previous quarter due to its AI-driven ad tech’s dominance in gaming and rising traction in e-commerce. 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.