BlackRock released its Q3 2025 investor letter for BlackRock Science and Technology Term Trust, a closed-end fund focused on tech investments. In Q3, the fund returned 10.1% on market price and 11.6% on NAV, compared to the MSCI Custom ACWI SMID Growth IT Call Overwrite Index’s 15.2%. Adjustments were made to align with market conditions.

AppLovin Corporation, highlighted in the investor letter, develops a software platform for marketers. The stock saw a 7.02% return in one month and gained 115.80% over 52 weeks. On December 29, 2025, the stock closed at $698.82 per share with a market cap of $236.17 billion.

BlackRock noted in its letter that investments in software and internet subsectors contributed the most to returns. The software subsector benefited from AI CAPEX commitments and robust earnings, while the internet sector saw gains from macroeconomic tailwinds and strong earnings.

AppLovin Corporation is not among the 30 most popular stocks among hedge funds. In Q3 2025, its revenue increased by 68% to $1.405 billion. While the company shows potential, other AI stocks may offer greater upside potential with less downside risk.

Read more at Yahoo Finance: AppLovin (APP) Surged Spurred By Broad-Based Growth Drivers