AppLovin Corporation (APP) Revenues Rose 77% YOY. Here’s Why

3 days ago 6

Soumya Eswaran

Thu, November 27, 2025 astatine 6:53 AM CST 3 min read

Sands Capital, an concern absorption company, released its “Sands Capital Select Growth Strategy” Q3 2025 capitalist letter. A transcript of the missive tin beryllium downloaded here. U.S. large-cap maturation equities continued to retrieve from a crisp sell-off successful aboriginal April. Strong firm earnings, capitalist enthusiasm astir artificial quality (AI), and increasing expectations for Federal Reserve argumentation easing drove the robust gains. The portfolio returned 6.3% (net) successful the quarter, compared to the benchmark's 10.5% gain. You tin cheque the fund’s apical 5 holdings to cognize much astir its champion picks for 2025.

In its third-quarter 2025 capitalist letter, Sands Capital Select Growth Strategy highlighted stocks specified arsenic AppLovin Corporation (NASDAQ:APP). AppLovin Corporation (NASDAQ:APP) develops a software-based level for advertisers to heighten the selling and monetization of their content. The one-month instrumentality of AppLovin Corporation (NASDAQ:APP) was -7.10%, and its shares gained 78.47% of their worth implicit the past 52 weeks. On November 26, 2025, AppLovin Corporation (NASDAQ:APP) banal closed astatine $586.37 per share, with a marketplace capitalization of $198.34 billion.

Sands Capital Select Growth Strategy stated the pursuing regarding AppLovin Corporation (NASDAQ:APP) successful its 3rd 4th 2025 capitalist letter:

"AppLovin Corporation (NASDAQ:APP) is 1 of the starring providers of advertizing solutions for mobile crippled developers. Second-quarter maturation accelerated, with revenues rising 77 percent twelvemonth implicit twelvemonth and EBITDA margins reaching 81 percent—a astir 900 ground constituent enlargement compared with a twelvemonth ago. Our absorption remains connected the important accidental for AppLovin to germinate into the 4th large nonstop effect advertizing level by extending its scope beyond gaming into ecommerce. The institution precocious toward this extremity with plans to motorboat a self-serve advertisement manager successful beta during the 4th quarter, with a broader rollout expected successful aboriginal 2026. Self-serve is simply a defining diagnostic of palmy advertizing platforms, and AppLovin is pursuing an AI-first attack that emphasizes automation, agents, and AI-driven originative tools alternatively than relying connected a ample income force."

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

AppLovin Corporation (NASDAQ:APP) is not connected our database of 30 Most Popular Stocks Among Hedge Funds. According to our database, 109 hedge money portfolios held AppLovin Corporation (NASDAQ:APP) astatine the extremity of the 2nd quarter, compared to 96 successful the erstwhile quarter. In Q3 2025, AppLovin Corporation’s (NASDAQ:APP) revenue increased 68% from past twelvemonth to astir $1.405 billion. While we admit the imaginable of AppLovin Corporation (NASDAQ:APP) arsenic an investment, we judge definite AI stocks connection greater upside imaginable and transportation little downside risk. If you're looking for an highly undervalued AI banal that besides stands to payment importantly from Trump-era tariffs and the onshoring trend, spot our escaped study connected the best short-term AI stock.