Alex Sacerdote, founder of Whale Rock Capital, is known for spotting high-growth technology leaders before they hit the mainstream. Rather than spreading capital across every sector, Sacerdote concentrates on companies driving innovation in areas like software, semiconductors, e-commerce, cloud infrastructure, and AI. His strategy blends deep fundamental research with emerging trends and a willingness to hold through short-term volatility when the long-term thesis is intact.
Whale Rock’s portfolio is built on the belief that exponential advances in computing power, automation, and data-driven business models will shape the next decade. Sacerdote looks for dominant market players with expanding addressable markets, strong competitive moats, and the ability to translate innovation into scale and profitability. These aren’t speculative plays; each position is chosen for its potential to deliver sustainable revenue and earnings growth over time.
By focusing heavily on tech, Sacerdote aligns Whale Rock with the accelerating digitization of the global economy. From AI to cloud providers transforming industries, his holdings target the infrastructure and platforms driving modern business. This concentrated, high-conviction approach may bring volatility, but it also positions the fund to capture the outsized returns that come from backing transformative technologies early and holding through market cycles.
1. Applovin (APP) 8.45% of portfolio
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Applovin stands as Whale Rock’s second-largest holding, with $487.3 million invested across 1.84 million shares, making up 8.45% of the portfolio. The firm increased its position slightly by 2.35% in Q1 2025, underscoring its conviction in the mobile app marketing leader. Applovin’s proprietary AI-driven ad optimization technology allows developers to acquire high-value users more efficiently while maximizing lifetime value. Its reach across gaming and non-gaming apps positions the company to benefit from rising mobile ad spend and improved monetization efficiency in a competitive landscape.
The company’s pivot toward higher-margin software services, combined with its growing international footprint, gives Whale Rock multiple avenues for upside. By pairing data-rich ad placement technology with its mobile gaming studio operations, Applovin controls both the supply and demand side of the equation. This vertical integration not only drives profitability but also builds a defensible moat against larger digital ad rivals. For Whale Rock, it’s a bet on a tech platform that thrives when innovation and scalability intersect.
2. Amazon (AMZN) 8.33% of portfolio
Amazon represents $480.1 million, or 8.33% of Whale Rock’s portfolio, even after a 27.78% reduction in Q1 2025. The firm’s 2.52 million shares still reflect a substantial commitment to one of the most diversified technology and retail companies in the world. AWS remains the crown jewel, generating significant cash flow that fuels investments in logistics, AI-powered retail automation, and digital advertising. Amazon’s strategic focus on AI, both in its retail recommendation engines and AWS services, aligns directly with Whale Rock’s emphasis on innovation-driven growth.
While trimming the position could reflect tactical portfolio rebalancing, Amazon’s fundamentals remain strong. Its advertising business is now a multibillion-dollar revenue stream growing faster than core e-commerce. Meanwhile, its forays into healthcare, streaming, and autonomous delivery expand its ecosystem and entrench customer loyalty. For Whale Rock, Amazon offers a rare combination: global scale, diversified revenue, and consistent reinvestment into frontier technologies.
3. Duolingo (DUOL) 4.89% of portfolio
Duolingo accounts for $281.7 million in Whale Rock’s portfolio, representing 4.89% of total assets. The fund did reduce its stake by 23.12% in Q1 2025, but it still holds 907,049 shares, enough to keep it among the firm’s top ten holdings. Duolingo remains the dominant player in app-based language learning, with a subscription-based revenue model that delivers high margins and recurring income. Its gamified learning experience keeps users engaged, while the company’s push into math, music, and AI-powered tutoring expands its addressable market far beyond traditional language courses.
Importantly, Duolingo’s scale and brand strength create a growth loop as its massive user base provides more training data for its AI models, which in turn improves learning outcomes and drives further adoption. Whale Rock’s continued investment signals confidence in Duolingo’s ability to transition from a language learning app to a multi-subject digital education powerhouse. For a tech-focused fund, it’s a prime example of a consumer app with enterprise-level growth potential.
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4. NVIDIA (NVDA) 3.50% of portfolio
Whale Rock’s $201.5 million NVIDIA stake, 3.50% of the portfolio, reflects the firm’s belief in the company’s central role in powering the AI economy. While the fund reduced its holdings by 37.79% in Q1, NVIDIA’s dominance in GPUs for AI workloads, gaming, and professional visualization keeps it a core tech position. The company’s Hopper and Blackwell architectures are setting performance benchmarks in AI training and inference, while its CUDA ecosystem creates high switching costs for customers.
Beyond hardware, NVIDIA’s growing suite of AI-focused software, from Omniverse to enterprise AI frameworks, is helping it capture more of the value chain. Whale Rock’s remaining position leaves room to re-expand if market volatility offers an attractive entry point. In the broader AI arms race, NVIDIA remains both the pick-and-shovel provider and an innovation engine, giving Whale Rock exposure to one of the most powerful secular trends in technology.
5. Microsoft (MSFT) 3.50% of portfolio
Microsoft ranks as a mid-tier holding for Whale Rock, with $201.7 million invested across 537,431 shares, accounting for 3.50% of the portfolio. The position surged in Q1 after the fund added over 512,000 shares, a massive 2,067% increase, signaling a sharp rise in conviction. Microsoft’s cloud dominance through Azure, its deep integration of generative AI into products like Copilot, and its enterprise software stronghold make it one of the most strategically important tech companies in the market.
This investment expansion reflects Microsoft’s position as both a growth engine and a defensive anchor in tech portfolios. AI integration across Office, Dynamics, and Azure is creating new monetization opportunities, while gaming via Xbox and Activision Blizzard offers a consumer growth vector. For Whale Rock, Microsoft’s combination of recurring enterprise revenue and AI-driven upside represents a high-quality, long-duration holding that aligns perfectly with its innovation-first philosophy.
Tech Compounding for the Next Decade
For Whale Rock, the strategy isn’t about chasing short-lived hype, it’s about backing technology leaders with the potential to dominate their categories for years to come. By concentrating on companies with durable moats, scalable business models, and exposure to transformative trends, Sacerdote positions his portfolio to capture sustained growth through market cycles. Over a decade, these kinds of holdings can compound dramatically, especially when anchored by disciplined portfolio management.
From cloud computing to AI infrastructure, Whale Rock’s top tech picks are positioned to benefit from structural tailwinds rather than fleeting market fads. It’s a patient approach that rewards conviction, allowing innovation and market share gains to do the heavy lifting over time. For investors who believe the next decade belongs to the companies driving digital transformation, Whale Rock’s portfolio offers a roadmap for participating in that growth.
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Disclaimer:
Please note that the articles on TIKR are not intended to serve as investment or financial advice from TIKR or our content team, nor are they recommendations to buy or sell any stocks. We create our content based on TIKR Terminal’s investment data and analysts’ estimates. Our analysis might not include recent company news or important updates. TIKR has no position in any stocks mentioned. Thank you for reading, and happy investing!
