Sands Capital released its Q3 2025 investor letter for the Technology Innovators Fund, which returned 8.4% in the third quarter compared to a benchmark return of 12.5%. The fund focuses on pioneering businesses worldwide driving long-term technological changes, with the United States accounting for nearly 70% of the MSCI ACWI index increase.

Duolingo, Inc. (NASDAQ:DUOL), a language learning platform, saw a one-month return of -27.75% and shares lost 44.76% over the last 52 weeks. On November 28, 2025, Duolingo, Inc. (NASDAQ:DUOL) stock closed at $191.41 per share, with a market cap of $8.848 billion.

Sands Capital Technology Innovators Fund sees potential in Duolingo, Inc. (NASDAQ:DUOL) as the leading global language-learning app capturing over 90% of monthly active users. With an addressable market of two billion learners, the platform’s gamified approach has increased conversions into paying subscribers. The fund foresees growth opportunities with AI-powered conversational tools.

Despite the potential of Duolingo, Inc. (NASDAQ:DUOL), only 50 hedge fund portfolios held the stock at the end of the third quarter, down from 55 in the previous quarter. Sands Capital believes certain AI stocks offer greater upside potential. To explore undervalued AI stocks, check out their free report on the best short-term AI stock.

In Q3 2025, Duolingo, Inc. (NASDAQ:DUOL) detracted from Baron Technology Fund’s performance due to an OpenAI demo and slowing user growth trends. For more investor letters from hedge funds and leading investors, visit the hedge fund investor letters Q3 2025 page.

Read more at Yahoo Finance: Does Duolingo (DUOL) Have The Potential to Accelerate Growth Through AI-Powered Conversations?