Sands Capital Technology Innovators Fund Added AppLovin (APP) on a Dip
Sands Capital, an investment management company, released its 'Sands Capital Technology Innovators Fund' Q1 2025 investor letter. A copy of the letter can be downloaded here. Technology Innovators focus on pioneering businesses worldwide that serve as key drivers or beneficiaries of significant long-term changes driven by technology. The fund returned -10.4% (net) in the first quarter compared to a 9.4% return for the benchmark, MSCI ACWI Info Tech and Communication Services Index. The choice of securities in the software sector was the primary factor negatively impacting relative performance. You can check the fund's top 5 holdings to know more about its best picks for 2025.
In its first-quarter 2025 investor letter, Sands Capital Technology Innovators Fund 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 41.44%, and its shares gained 354.06% of their value over the last 52 weeks. On May 27, 2025, the stock of AppLovin Corporation (NASDAQ:APP) closed at $380.91 per share, with a market capitalization of $128.895 billion.
Sands Capital Technology Innovators Fund stated the following regarding AppLovin Corporation (NASDAQ:APP) in its Q1 2025 investor letter:
"AppLovin Corporation (NASDAQ:APP) is one of the leading providers of advertising solutions for mobile game developers. Its stock price decline stemmed from a broader selloff in high-beta stocks, exacerbated by multiple short reports. These reports allege app-install manipulation and improper data attribution—claims we view as largely unfounded. AppLovin's revenue is tied to purchases, not clicks, and its customers use sophisticated attribution tools. Given the opaque nature of ad tech, we took added precautions in our due diligence, consulting ad fraud experts and a forensic accountant. We see no new concerns that alter our conviction and believe the selloff has improved the long-term risk-reward in our favor.
A close-up of a mobile device, showing an advertiser reaching out to a consumer via a software-based platform.
AppLovin Corporation (NASDAQ:APP) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 96 hedge fund portfolios held AppLovin Corporation (NASDAQ:APP) at the end of the first quarter, which was 95 in the previous quarter. AppLovin Corporation's (NASDAQ:APP) total revenue surged 40% from Q1 2024 to $1.5 billion. While we acknowledge the potential of AppLovin Corporation (NASDAQ:APP) as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as NVIDIA but that trades at less than 5 times its earnings, check out our report about the undervalued AI stock set for massive gains.
In another article, we covered AppLovin Corporation (NASDAQ:APP) and shared the list of best technology stocks to buy for long-term investment. Carillon Eagle Mid Cap Growth Fund also analyzed AppLovin Corporation (NASDAQ:APP) in its Q1 2025 investor letter and attributed its decline during the quarter to the same factors. In addition, please check out our hedge fund investor letters Q1 2025 page for more investor letters from hedge funds and other leading investors.
READ NEXT: Michael Burry Is Selling These Stocks and A New Dawn Is Coming to US Stocks.
Disclosure: None. This article is originally published at Insider Monkey.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Business Wire
12 minutes ago
- Business Wire
ELEV Stock Alert: Halper Sadeh LLC Is Investigating Whether the Sale of Elevation Oncology, Inc. Is Fair to Shareholders
NEW YORK--(BUSINESS WIRE)--Halper Sadeh LLC, an investor rights law firm, is investigating whether the sale of Elevation Oncology, Inc. (NASDAQ: ELEV) to Concentra Biosciences, LLC is fair to Elevation shareholders. Under the terms of the proposed transaction, Elevation shareholders will receive $0.36 in cash per share, plus one non-tradeable contingent value right representing the right to receive: (i) 100% of the closing net cash in excess of $26.4 million; and (ii) 80% of any net proceeds received within five years following closing from any disposition of EO-1022 that occurs within one year following closing. Halper Sadeh encourages Elevation shareholders to click here to learn more about their legal rights and options or contact Daniel Sadeh or Zachary Halper at (212) 763-0060 or sadeh@ or zhalper@ The investigation concerns whether Elevation and its board of directors violated the federal securities laws and/or breached their fiduciary duties to shareholders by failing to, among other things: (1) obtain the best possible consideration for Elevation shareholders; (2) determine whether Concentra is underpaying for Elevation; and (3) disclose all material information necessary for Elevation shareholders to adequately assess and value the merger consideration. On behalf of Elevation shareholders, Halper Sadeh LLC may seek increased consideration for shareholders, additional disclosures and information concerning the proposed transaction, or other relief and benefits. We would handle the action on a contingent fee basis, whereby you would not be responsible for out-of-pocket payment of our legal fees or expenses. Halper Sadeh LLC represents investors all over the world who have fallen victim to securities fraud and corporate misconduct. Our attorneys have been instrumental in implementing corporate reforms and recovering millions of dollars on behalf of defrauded investors. Attorney Advertising. Prior results do not guarantee a similar outcome.
Yahoo
21 minutes ago
- Yahoo
Warner Bros. Discovery to split into two media companies
-- Warner Bros. Discovery (NASDAQ: NASDAQ:WBD) shares paused trading on Monday pending a significant announcement. The company revealed plans to separate into two leading media corporations. The division will result in two distinct entities: Streaming & Studios, and Global Networks. The separation is intended to boost the potential of each business by focusing on their respective strengths. Streaming & Studios will include Warner Bros. Television, Warner Bros. Motion Picture Group, DC Studios, HBO, and HBO Max. This division aims to expand HBO Max, which is slated to enter new markets by 2026, and reach a minimum of $3 billion in yearly adjusted EBITDA. Global Networks will house global entertainment, sports, and news television networks like CNN and TNT Sports in the U.S., along with digital products such as Discovery+ and Bleacher Report. This segment currently reaches over 1.1 billion unique viewers in 200 countries and territories and is known for its high margins and strong free cash flow conversion. David Zaslav will continue as President and CEO of Streaming & Studios, and Gunnar Wiedenfels will become President and CEO of Global Networks. Both will retain their current roles at WBD until the separation is complete. The restructuring is designed to give each company the strategic flexibility needed to compete in the fast-changing media landscape. The Warner Bros. Discovery Board, led by Samuel A. Di Piazza, Jr., believes this transaction will increase shareholder value and is part of their commitment to realizing the full value of the company's assets. Both companies will be well-funded, with Warner Bros. Discovery having initiated tender offers to enhance its debt portfolio, supported by a $17.5 billion bridge facility from J.P. Morgan. Global Networks will retain up to a 20% stake in Streaming & Studios, which it plans to monetize to improve its balance sheet. The separation is expected to be completed by mid-2026, subject to approval by the Warner Bros. Discovery Board, tax rulings, and market conditions. After the announcement, shares rose over 10%. Related articles Warner Bros. Discovery to split into two media companies AppLovin would be more valuable without its 1P games, Morgan Stanley argues Morgan Stanley downgrades Lululemon on weak US growth outlook Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
21 minutes ago
- Yahoo
Omada goes public in second recent digital health IPO
This story was originally published on Healthcare Dive. To receive daily news and insights, subscribe to our free daily Healthcare Dive newsletter. Omada Health went public Friday, marking the second recent digital health IPO after a dry spell for the sector. The digital chronic condition management company opened at $23 per share, a 21% bump over its public offering price of $19 per share. Omada's debut comes on the heels of virtual musculoskeletal company Hinge Health's IPO last month. 'I think it is definitely a promising bellwether for the industry,' John Beadle, co-founder and managing partner of Aegis Ventures, told Healthcare Dive. Omada, which was founded in 2011 and has raised hundreds of millions of dollars in venture capital funding, offers digital management programs for conditions like diabetes, obesity and hypertension. Care teams also work with patients to build treatment plans and equip users with connected devices like blood pressure cuffs or digital scales. The company filed to go public in May. Now, Omada is trading on Nasdaq under the ticker symbol 'OMDA,' having raised $150 million in its IPO. The firm's public offering price of $19 was at the midpoint of the expected range it released Thursday. Omada's IPO comes as the digital health sector has seen few public offerings in recent years. A surge of companies notched public exits in 2021, but the number has declined significantly in recent years. Many digital health companies that went public during the boom — particularly ones that used mergers with special purpose acquisition companies — performed poorly, and may have been better off as strategic M&A targets, Beadle said. However, the industry seemed poised for more companies to make the leap this year, and their performance could push others to follow in their footsteps, experts told Healthcare Dive late last year. Now, two digital health companies have gone public in recent weeks. Hinge debuted on the New York Stock Exchange in May, opening 23% above its public offering price. Still, the sector isn't seeing a flood of digital health companies moving to go public like in 2021, Beadle said. 'I don't think there's that many companies that are ready and have the operational maturity, growth trajectory [and] outcomes that Hinge and Omada do,' he said. 'But I think both companies were exceptionally well prepared to do well when they went public.' Though Hinge had given back most of its early post-IPO gains by the time of Omada's pricing, its performance still provided a 'good tailwind' for the chronic conditions management firm, Edward Best, co-chair of the capital markets practice at Willkie Farr & Gallagher, said via email. Still, larger macroeconomic conditions will also impact whether more digital health companies decide to make the leap to the public markets. Some technology companies decided to delay their IPOs this spring after tariffs announced by President Donald Trump roiled the markets. Stability is key to the IPO market, as investors will likely choose safer investments during periods of volatility, Best said. Companies need to think about their own operations and readiness to go public as well as broader conditions. 'The IPO market has periods when the window is more open than others. A company that is ready and wants or needs to go public when the window is open should certainly take a long hard look within,' he said. 'Waiting too long could mean missing the window.' Recommended Reading Hinge Health goes public in positive signal for digital health IPOs
