Large Wealth Advisor Trims Exposure to Red-Hot Digital Advertising Stock
Key Points
Sapient Capital reduced its AppLovin position by 8,029 shares, with an estimated value of $3,702,494
After the sale, Sapient Capital held 1,272,462 shares valued at $906.45 million as of September 30, 2025.
The position now accounts for 13.95% of AUM, maintaining AppLovin as the fund's 2nd-largest holding.
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Sapient Capital disclosed in its October 17, 2025, SEC filing that it sold 8,029 shares of AppLovin (NASDAQ:APP), an estimated $3.70 million trade based on the average price for the quarter.
What Happened
In a quarterly Form 13F filed with the Securities and Exchange Commission on October 17, 2025 (link), Sapient Capital reported selling 8,029 shares of AppLovin (NASDAQ:APP) during the quarter. The estimated value of the trade was $3,702,494. The fund retained a position of 1,272,462 shares.
What Else to Know
The sale reduced AppLovin's position to 13.95% of Sapient Capital's 13F AUM, but it remains the fund's 2nd-largest holding after Eli Lilly.
Top holdings after the filing:
- NYSE:LLY: $1.07 billion (16.5% of AUM) as of September 30, 2025
- NASDAQ:APP: $906.45 million (14.0% of AUM) as of September 30, 2025
- NASDAQ:AAPL: $346.81 million (5.3% of AUM) as of September 30, 2025
- NASDAQ:MSFT: $313.49 million (4.8% of AUM) as of September 30, 2025
- NASDAQ:GOOGL: $238.99 million (3.7% of AUM) as of September 30, 2025
As of October 17, 2025, AppLovin shares were priced at $599.31.
Company Overview
| Metric | Value |
|---|---|
| Market Capitalization | $202.71 billion |
| Revenue (TTM) | $5.31 billion |
| Net Income (TTM) | $2.38 billion |
| Price (as of market close 2025-10-17) | $599.31 |
Company Snapshot
AppLovin Corporation operates at scale in the mobile software sector, enabling app developers to maximize monetization and user acquisition through advanced technology platforms. The company's integrated solutions and data-driven approach drive app marketing and advertising revenue. With a strong presence in the global mobile ecosystem, AppLovin is positioned as a key partner for developers and advertisers seeking growth and efficiency.
The company provides a comprehensive suite of software solutions for mobile app developers, including marketing automation, analytics, and in-app bidding platforms. AppLovin generates revenue primarily through software-based advertising and monetization services that match advertiser demand with publisher supply via real-time auctions. It serves advertisers, publishers, and internet platforms targeting the global mobile application ecosystem.
Foolish Take
AppLovin has been one of the top performing stocks so far this year. Therefore, Sapient Capital's sale must be put into context. While Sapient did sell 8,000 shares of AppLovin worth around $3.7 million, this transaction looks more like profit-taking than anything else.
Consider Sapient's top holdings: AppLovin remains the 2nd overall, with nearly 1.3 million shares valued at around $900 million. In other words, Sapient sold off less than 1% of its overall position in AppLovin -- making it clear, not only is this a trim, it's a small one.
At any rate, the company has been in the news, and not for the greatest of reasons. About two weeks ago, reports emerged of an SEC investigation into AppLovin's data collection practices. That sent shares tumbling by nearly 20%. Earlier in the year, AppLovin was targeted by short sellers based on similar allegations.
For retail investors, there are many pros and cons to balance. On the one hand, AppLovin's fundamentals are growing, with trailing 12-month revenue roughly doubling from $2.8 billion in 2023 to $5.3 billion today. What's more, the company is now part of the S&P 500, and, on a market cap basis, it is the 82nd-largest American company.
However, short sellers continue to circle. Moreover, if the SEC investigation turns up any wrongdoing by the company, its stock could plummet. Retail investors may be wise to exercise caution.
Glossary
Form 13F: A quarterly report filed by institutional investment managers to disclose their equity holdings.
AUM (Assets Under Management): The total market value of assets that an investment firm manages on behalf of clients.
Reportable AUM: The portion of a fund's assets that must be disclosed in regulatory filings, such as Form 13F.
Position: The amount of a particular security or asset held by an investor or fund.
Holding: An investment owned by a fund or individual, such as shares in a company.
Quarterly: Occurring every three months; often refers to financial reporting periods.
TTM: The 12-month period ending with the most recent quarterly report.
Monetization: The process of generating revenue from a product, service, or asset.
In-app bidding: An automated auction process where advertisers bid in real time to display ads within mobile apps.
Publisher supply: The available advertising space that app or website owners offer to advertisers.
Real-time auctions: Automated, instant bidding processes used to sell digital ad space as users interact with apps or websites.
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Jake Lerch has positions in Alphabet. The Motley Fool has positions in and recommends Alphabet, Apple, and Microsoft. The Motley Fool recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy.
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