Institutional ticker directory tracking stock mentions, long/short ideas, and high-conviction pitches extracted from quarterly hedge fund letters.
| Ticker | Company | Sector | Industry | Pitches | Stance |
|---|---|---|---|---|---|
| Fund / Manager | Thesis Excerpt | Stance | Period / Date | Action |
|---|---|---|---|---|
“AppLovin (APP) — This is a 1% position in a small AI basket. AppLovin is an AI company whose product happens to be ad matching. AXON predicts which ad to show to which user to maximize conversion. AppLovin has been one of the best companies at using AI at scale to drive revenues and profits. In 2025 revenue grew ~70% year-over-year to $5.48B with ~82% adjusted EBITDA margin and $3.95B of free cash flow (FCF), an 88% conversion of EBITDA to FCF. In 2025 the company was a rule of 142 company with 70% revenue growth and 72% FCF margin. AppLovin should generate more than $6 million of EBITDA per employee in 2026, paring down headcount while growing at very high rates. Shares trade at sub 20X 2027 FCF.” | NEUTRAL | Q2 2026 Aug 14, 2026 | View Pitch | |
“One example of this re-rate and de-rate cycle in play is AppLovin, which remains the Fund's largest position. The stock is the largest contributor to the Fund's returns since inception, but it has also been a significant source of month-to-month volatility for the portfolio. With the benefit of hindsight, the optimal decision would have been to reduce the position size, perhaps aggressively so, when the stock price breached $700 and the forward P/E multiple exceeded 50x. However, it is worth highlighting that while the stock is currently in a 28% drawdown from all-time highs and trading at 28x forward P/E, the stock price is still higher than it was in February 2025 when the forward P/E exceeded 70x. In other words, the company's explosive earnings growth was more than enough to offset the significant earnings multiple compression. When AppLovin staged its face-ripping rally from late 2024 to early 2025, our earnings estimates for the business remained well ahead of sell-side consensus (and buyside consensus as best we could gauge), so the stock was always trading at a much lower multiple to our numbers than the consensus numbers on stock screeners. By the time the stock reached $700 in late 2025 and early 2026, sell-side consensus had caught up to our estimates. So, at this point, sharp upward estimate revisions were no longer a driving force for the stock price. In hindsight, the optimal decision was to reduce the position size once sell-side and buyside estimates caught up to or exceeded our own, and the stock price continued to appreciate.” | BULL | Q2 2026 Jul 15, 2026 | View Pitch | |
Fundsmith Equity Fund Terry Smith | “AppLovin provides software and artificial intelligence that assists mobile apps to find new users and sell advertising space. It is the company that shows you an advert between levels in Candy Crush o” | NEUTRAL | Q2 2026 Jul 8, 2026 | View Pitch |
Value Line Larger Companies Focused Fund Cindy Starke | “AppLovin's share price faced a sharp correction during the quarter due to shifting investor sentiment and valuation compression. Despite the drop, it remains a top-ten holding, indicating the manager's belief that its long-term business fundamentals remain intact.” | BULL | Q1 2026 Mar 31, 2026 | View Pitch |
Spyglass Capital Management Portfolio Manager | “AppLovin delivered stellar Q2 results with significant revenue and net income growth. The release of its self-serve e-commerce tool for non-gaming clients represents a major catalyst that remains underappreciated by the market. Although the manager trimmed the position due to run-up, it remains a high-conviction holding.” | BULL | Q3 2025 Sep 30, 2025 | View Pitch |
Sands Capital Technology Innovators Fund Michael Clarke, Thomas Trentman | “AppLovin's revenue rose 77% year-over-year, with EBITDA margins expanding 900 bps to 81%. Sands highlights AppLovin's evolution toward becoming the “fourth major” direct-response ad platform, expanding beyond gaming into ecommerce. Its upcoming AI-driven self-serve ad manager (launching early 2026) is expected to accelerate adoption. The company's AI-first strategy—focused on automation and generative creative tools—supports higher scalability without a large salesforce. :contentReference[oaicite:2]{index=2} BSD Analysis: APP is evolving from a niche adtech vendor to a scaled platform with self-serve flywheel dynamics. Expanding end-markets and superior margins justify multiple expansion. AI-driven optimization tools enhance stickiness and ROI.” | BULL | Q3 2025 Sep 30, 2025 | View Pitch |
NCG Large Cap Growth Strategy Next Century Growth Investors, LLC | “AppLovin was a top contributor during the quarter. The company continues to benefit from its advanced AI-powered ad engine (AXON) that enhances ad targeting and drives better ROI for mobile app developers. Strong performance in the ad tech space reinforced its growth trajectory. BSD Analysis: AppLovin's evolution from a mobile gaming publisher to a leading AI-driven ad optimization platform is creating sustained operating leverage. The AXON 2.0 engine is delivering double-digit ROAS improvements for clients, enhancing stickiness and expanding market share. EBITDA margins reached 45%, supported by disciplined cost control and high data-driven monetization efficiency. AppLovin's shift toward software-centric recurring revenue and partnerships with large developers diversifies growth away from cyclical advertising. At 14x forward EBITDA, the stock remains attractively valued for a firm compounding 25%+ annually.” | BULL | Q3 2025 Sep 30, 2025 | View Pitch |
Alger Spectra Fund Patrick Kelly, Dan Chung, Ankur Crawford | “AppLovin is an advertising technology company offering a digital platform that helps mobile app developers market, monetize, and analyze their apps. We believe the company is experiencing a positive lifecycle change, driven by its AI-powered software engine. While currently focused on mobile gaming, AppLovin is expanding into other market segments. Its Demand Side Platform (DSP) supports ad placements, user acquisition, inventory matching, and performance analytics. Further, we believe AI is central to AppLovin's growth, driving a large majority of the company's revenue through its recommendation and targeting engine. In our view, AppLovin gains a competitive advantage, delivering higher-value app installs by leveraging data from its game portfolio and developer partners. We believe this scale and data advantage enhances its network effect, improving its technology and boosting market share in mobile gaming. As developers use the platform, the company collects data that continuously refines its algorithms. Shares contributed positively to performance during the period due to strong operating results, which highlighted continued growth in its advertising platform and software business. Momentum further accelerated in September when AppLovin was added to the S&P 500 Index, a milestone that enhanced visibility and underscored the company's growing market presence. BSD Analysis: AppLovin's AI-driven ad-tech platform is expanding beyond gaming, positioning it for sustained high-margin growth. Trading around 18× forward EBITDA with accelerating revenue momentum, the firm benefits from scale data advantages and network effects that strengthen pricing power. Margin expansion is aided by mix shift toward software. Addition to the S&P 500 increases institutional demand and liquidity. Catalysts include continued DSP adoption, AI-driven optimization, and international expansion.” | BULL | Q3 2025 Sep 30, 2025 | View Pitch |
Each excerpt above is the manager's commentary on this ticker specifically. The full letter has the rest of their portfolio thinking, risk discussion, and broader institutional context.
