Bailard Inc., an investment management firm, published its Q3 2025 investor letter for “Bailard Technology Strategy”. A copy of the letter can be downloaded here. The strategy generated 9.36% net of fees during the quarter compared with the 13.14% return of the S&P US Technology Index, the 11.64% return of Morningstar’s US open technology categories and the 11.19% gain of the Lipper Science and Technology Fund Index. The quarter showed an improvement in technology fundamentals following the market rally in the second quarter, driven by structural demand trends and regulatory developments in key verticals. Plus, check out the fund’s top five holdings for its top picks in 2025.

In its Q3 2025 letter to investors, Bailard Technology Strategy highlighted stocks like AppLovin Corporation (NASDAQ:app). AppLovin Corporation (NASDAQ:APP) develops a software-based platform for advertisers to improve the marketing and monetization of their content. AppLovin Corporation (NASDAQ:APP)’s one-month return was 14.54% and its stock gained 112.96% of its value over the past 52 weeks. On December 26, 2025, shares of AppLovin Corporation (NASDAQ:APP) closed at $714.23 per share, with a market capitalization of $241.588 billion.

Bailard Technology Strategy stated the following about AppLovin Corporation (NASDAQ:APP) in its Q3 2025 investor letter:

“AppLovin Corporation (NASDAQ:APP) (+160 bps; +105.25%) – Exceptional growth in mobile game advertising and programmatic AdTech drove a huge performance. Expansion into e-commerce markets further strengthens its prospects for 2026.”

AppLovin Corporation (NASDAQ:APP) is not on our list The 30 most popular stocks among hedge funds. According to our database, 110 hedge fund portfolios held AppLovin Corporation (NASDAQ:APP) at the end of the third quarter, up from 109 in the previous quarter. In Q3 2025, AppLovin Corporation (NASDAQ:APP) income increased 68% over last year to approximately $1.405 billion. While we recognize AppLovin Corporation (NASDAQ:APP)’s potential as an investment, we believe certain AI stocks offer greater upside potential and less downside risk. If you’re looking for an extremely undervalued AI stock that will also benefit significantly from Trump-era tariffs and the onshoring trend, check out our free report on the best short term AI stock.

In another articlewe covered AppLovin Corporation (NASDAQ:APP) and shared the list of the best stocks to invest in over the next 3 years. Also, check out our Hedge Fund Investor Letters Q3 2025 page for more letters from hedge fund investors and other leading investors.