Is it Good to Consider AppLovin Corp. (APP) as a Long-Term Investment?

ClearBridge Investments, an investment management firm, published its “Mid Cap Growth Strategy” second quarter 2022 investor letter – a copy of which can be downloaded here. The ClearBridge Mid Cap Growth Strategy underperformed the Russell Midcap Growth Index during the second quarter. On an absolute basis, the Strategy had losses across all 10 sectors in which it was invested during the quarter (out of 11 sectors total). The leading detractors were the IT and consumer discretionary sectors, while the real estate sector was the smallest detractor. Go over the fund’s top 5 positions to have a glimpse of its finest picks for 2022.

In its Q2 2022 investor letter, ClearBridge Mid Cap Growth Strategy Fund mentioned AppLovin Corporation (NASDAQ:APP) and explained its insights for the company. Founded in 2012, AppLovin Corporation (NASDAQ:APP) is a Palo Alto, California-based mobile technology company with a $9.7 billion market capitalization. AppLovin Corporation (NASDAQ:APP) delivered a -71.99% return since the beginning of the year, while its 12-month returns are down by -65.54%. The stock closed at $26.40 per share on August 24, 2022.

Here is what ClearBridge Mid Cap Growth Strategy Fund has to say about AppLovin Corporation (NASDAQ:APP) in its Q2 2022 investor letter:

“However, if we determine that our thesis remains intact, we maintain our conviction in light of short-term pain. For example, we added to AppLovin (NASDAQ:APP), a mobile advertising technology platform whose share price suffered from fears that an economic slowdown would impact advertising spending. However, we view AppLovin as well-positioned to use innovative machine learning technology to capture market share and grow through any broader economic slowdown.”

Our calculations show that AppLovin Corporation (NASDAQ:APP) fell short and didn’t make it on our list of the 30 Most Popular Stocks Among Hedge Funds. AppLovin Corporation (NASDAQ:APP) was in 26 hedge fund portfolios at the end of the second quarter of 2022, compared to 28 funds in the previous quarter. AppLovin Corporation (NASDAQ:APP) delivered a -26.03% return in the past 3 months.

In May 2022, we also shared another hedge fund’s views on AppLovin Corporation (NASDAQ:APP) in another article. You can find other investor letters from hedge funds and prominent investors on our hedge fund investor letters 2022 Q2 page.

Disclosure: None. This article is originally published at Insider Monkey.