Large Wealth Advisor Trims Exposure to Red-Hot Digital Advertising Stock

Core Insights - Sapient Capital sold 8,029 shares of AppLovin for an estimated $3.70 million, reducing its position to 13.95% of its 13F AUM, while retaining 1,272,462 shares, making AppLovin the second-largest holding after Eli Lilly [2][3] Company Overview - AppLovin Corporation has a market capitalization of $202.71 billion, with a trailing twelve-month (TTM) revenue of $5.31 billion and a net income of $2.38 billion [4] - As of October 17, 2025, AppLovin shares were priced at $599.31 [4] Business Model - AppLovin operates in the mobile software sector, providing app developers with technology platforms to enhance monetization and user acquisition [5] - The company offers a suite of software solutions, including marketing automation, analytics, and in-app bidding platforms, generating revenue primarily through software-based advertising [6] Recent Performance - AppLovin has been a top-performing stock in 2025, with Sapient Capital's sale viewed as profit-taking rather than a significant divestment, as the fund still holds nearly 1.3 million shares valued at around $900 million [7][10] - The company's revenue has doubled from $2.8 billion in 2023 to $5.3 billion, and it is now part of the S&P 500, ranking as the 82nd-largest American company by market cap [10] Market Concerns - Recent reports of an SEC investigation into AppLovin's data collection practices have negatively impacted its stock, causing a nearly 20% drop [9] - Short sellers have targeted AppLovin earlier in the year based on similar allegations, indicating ongoing market concerns [11]