Exploring Similarweb Ltd. (SMWB) Investor Profile: Who’s Buying and Why?

You see the headlines about Similarweb Ltd. (SMWB) hitting $71.8 million in Q3 2025 revenue, an 11% jump year-over-year, and you have to wonder who is betting big on this digital intelligence platform and why they're buying now. Institutional money is defintely piling in, holding approximately 57.59% of the stock, which means the smart money has a heavy hand in its valuation. We're not talking about small moves; firms like Wellington Management Group Llp recently boosted their position by a staggering 163.6%, adding over 1.5 million shares, while the company itself raised its full-year 2025 revenue guidance to a range between $285.0 million and $288.0 million on the back of strong customer growth. Is this accumulation driven purely by the company's eighth consecutive quarter of positive free cash flow, or is it the massive potential in their Generative AI data offerings? We need to look past the top-line numbers to see if the conviction of these major holders-who collectively own over 44.6 million shares-aligns with the company's path to profitability and the analyst consensus of a 67.84% potential upside.

Who Invests in Similarweb Ltd. (SMWB) and Why?

You want to know who is betting on Similarweb Ltd. (SMWB) and what their thesis is. The quick takeaway is that institutional money, the so-called smart money, holds the majority stake, but the investment case has shifted from pure revenue growth to a focus on profitable expansion, driven by the company's proprietary data and its new Gen AI products.

The investor base is a mix, but it's heavily weighted toward large institutions like mutual funds and pension funds, plus a significant slice of long-term insider holdings. As of late 2025, institutional investors own roughly 57.6% of the company's stock, giving them substantial influence over the share price and strategy.

To be fair, the remaining ownership is split between insiders and the general public, or retail investors. Insiders-founders, executives, and board members-hold a critical stake, often around 15%. This high insider ownership is defintely a positive signal, showing management's interests are tightly aligned with shareholders' long-term returns.

Key Investor Types and Their Stakes

The ownership structure of Similarweb is typical for a growth-oriented technology company that has recently pivoted toward profitability. It shows conviction from large, stable funds, but also a healthy level of activity from more agile investors.

Here is a simplified breakdown of the ownership profile based on recent 2025 data:

You see names like Wellington Management Group LLP and T. Rowe Price Investment Management Inc. among the top institutional holders. These are not short-term players; they are looking for multi-year growth stories. Plus, you also see the presence of funds like Schonfeld Strategic Advisors LLC, suggesting that some capital is deployed with a more tactical, event-driven (short-term) strategy.

Investment Motivations: The Growth-to-Profit Story

What attracts this diverse group of investors to Similarweb? It boils down to a few concrete factors, all centered on the company's unique data asset and its recent financial discipline.

• Proprietary Digital Data: Similarweb's core value is its massive, proprietary dataset that provides digital intelligence-a critical input for business strategy, marketing, and investment decisions.
• Path to Profitability: The company has demonstrated strong financial discipline, raising its non-GAAP operating profit guidance for the full fiscal year 2025 to between $8.5 million and $9.5 million. This is a huge draw for institutional investors who want to see a clear path to sustainable earnings.
• Consistent Cash Flow: Similarweb reported its eighth consecutive quarter of positive free cash flow in Q3 2025. Positive free cash flow is the lifeblood of any company, and that consistency is a major de-risking factor.
• AI-Driven Growth: New products like Gen AI Intelligence and App Intelligence are opening up new revenue streams. Gen AI Intelligence alone surpassed $1 million in Annual Recurring Revenue (ARR) since its launch in early 2025, which proves the company's ability to monetize its data in high-growth areas.

The company is guiding for full-year 2025 revenue between $285.0 million and $288.0 million, which represents about 15% year-over-year growth at the midpoint. This is solid growth, but the real story is the simultaneous margin expansion.

Investment Strategies in Play

The strategies employed by SMWB investors are a blend of long-term conviction and tactical trading, reflecting the company's position as a maturing SaaS (Software as a Service) business.

Long-Term Holding: This is the dominant strategy among the large institutional holders. They are buying into the core thesis that digital intelligence is a non-negotiable expense for modern businesses, and that Similarweb has a defensible moat with its data. They appreciate the durability of revenue, which is underscored by the fact that 58% of the company's ARR is contracted under multi-year agreements. These investors are focused on the long-term vision laid out in the Mission Statement, Vision, & Core Values of Similarweb Ltd. (SMWB).

Growth at a Reasonable Price (GARP): Many investors are now viewing Similarweb through a GARP lens. They are not just chasing top-line growth at any cost. Instead, they are looking at the 15% revenue growth alongside the newly raised profit guidance. Here's the quick math: a company generating consistent free cash flow and a non-GAAP operating profit of nearly $9 million (at the midpoint) while still growing at a double-digit rate is appealing to investors who are wary of unprofitable tech.

Short-Term Trading / Event-Driven: You see this strategy around earnings reports. For example, Q3 2025 saw revenue of $71.8 million, which was right in line with expectations, but the market reacted to the raised profit guidance and the strong Gen AI adoption. Short-term traders are looking for these catalysts-new product announcements, raised guidance, or shifts in the competitive landscape-to make quick moves.

Institutional Ownership and Major Shareholders of Similarweb Ltd. (SMWB)

You want to know who is really calling the shots at Similarweb Ltd. (SMWB) and what that means for your investment. The short answer is that institutional money-the big funds and asset managers-holds the majority stake, which gives them significant sway. As of November 2025, institutional investors own a substantial 66.55% of Similarweb's stock. That's a powerful concentration of capital, and it's what we call the smart money. This group collectively controls the stock's direction and can influence major strategic decisions, so you need to know who they are and what they've been doing.

Top Institutional Investors and Their Positions

When you look at the top holders, it's a mix of strategic venture capital, insurance giants, and major asset managers. The largest single shareholder is often a pre-IPO investor, which is the case here, but the sheer number of institutional funds filing 13F reports shows broad professional interest. As of the most recent filings (Q3 2025 data), the largest institutional positions are held by a few key players.

Here's the quick math on the largest positions, based on the market value of their holdings from the 2025 fiscal year data:

• Naspers Ltd: Holds approximately 11.17 million shares, with a market value of about $103.9 million.
• Menora Mivtachim Holdings LTD.: Holds about 3.21 million shares, valued at roughly $29.84 million.
• Migdal Insurance & Financial Holdings Ltd.: Holds around 3.11 million shares, with a market value of nearly $28.89 million.

You can see the dominance of these top three, but the list goes on to include other significant names like Ulysses Management LLC, Phoenix Holdings LTD., and Wellington Management Group LLP. Even a firm like BlackRock, Inc. holds a notable position, with approximately 0.945 million shares, valued at around $8.79 million. That kind of institutional backing lends a certain credibility to the stock, even in volatile markets.

Recent Shifts: Who's Buying and Selling?

The real signal for a seasoned analyst isn't just who holds the stock, but how their conviction is changing. We've seen a net buying trend from institutions over the past two years, with a total purchase volume of over 23.2 million shares. That's a strong vote of confidence in Similarweb's long-term digital intelligence strategy and its Mission Statement, Vision, & Core Values of Similarweb Ltd. (SMWB).

Looking at the most recent quarter-over-quarter changes in 2025, the accumulation trend is clear. Wellington Management Group LLP, for instance, has been a major buyer, adding around 1.53 million shares to their stake in the first quarter of 2025. Phoenix Holdings LTD. also significantly increased its holding by approximately 1.36 million shares. This tells me that some of the biggest players are defintely increasing their exposure to the name, which is a key indicator of perceived opportunity.

Still, it's not all one-way traffic. While the overall trend is accumulation, some institutions have been trimming their positions. For example, CenterBook Partners LP reduced its stake by about 0.261 million shares in a recent quarter. This selling activity is normal portfolio rebalancing, but it's a reminder that not every fund sees the same near-term trajectory.

The Impact of Large Institutional Investors on SMWB

The influence of these large institutional investors is twofold: it affects both the stock price and the company's strategic direction. With institutions owning over 66% of the company, their collective sentiment drives the stock's volatility and liquidity. If a few major funds decide to sell, the stock price can drop sharply, which is a near-term risk you must map.

More importantly, these shareholders have a significant voice in the boardroom. The top seven shareholders alone hold over 52% of the business. This means management must align its long-term strategy-especially around growth, profitability, and capital allocation-with the interests of these large, sophisticated owners. Their focus on disciplined execution and sustained demand for Similarweb's Digital Data, evidenced by the company's eighth consecutive quarter of positive free cash flow as of Q3 2025, is a direct result of this institutional oversight. Their buying signals approval of the company's push into Generative AI data and solutions, which is one of Similarweb's fastest-growing revenue streams.

Your action here is simple: track the 13F filings closely. If you see a sustained, broad-based reduction in institutional ownership, it's a red flag. For now, the accumulation trend shows that the big money believes in the story.

Key Investors and Their Impact on Similarweb Ltd. (SMWB)

You want to know who is really calling the shots at Similarweb Ltd. (SMWB) and why the stock moves the way it does. The short answer is that institutional money-the large funds and investment houses-holds the majority stake, about 57.59% of the company's stock, as of late 2025. This high concentration means a few major players have significant sway over the stock price and strategic direction.

The investor profile is a mix of venture capital legacy, strategic foreign investment, and big-name asset managers. This combination tells us the market sees both a long-term growth story and near-term trading opportunities in the digital intelligence space.

Notable Investors and Their Concentrated Power

When you look at Similarweb Ltd.'s cap table, you see a clear hierarchy. The top seven shareholders own over half the business, which is a powerful concentration of capital. This isn't a company where retail investors or a fragmented institutional base dictates the narrative; the big funds' decisions matter a lot.

The largest shareholders include a mix of early-stage investors and major financial institutions. Naspers Ltd. and its subsidiary Prosus Ventures N.V. have been foundational, holding a significant stake-Naspers Ltd. alone held over 11.17 million shares as of September 30, 2025. This kind of foundational investment signals a belief in the core technology and long-term vision of the digital data platform. Also in the top tier are prominent Israeli institutional investors like Menora Mivtachim Holdings Ltd. and Migdal Insurance & Financial Holdings Ltd., which is common for Israeli-founded tech companies.

For a sense of scale, here are the largest institutional holders by shares held in the most recent filings (Q3 2025):

• Naspers Ltd.: 11,173,265 shares
• Viola Ventures V.C. Management 4 Ltd.: 10,810,778 shares
• Menora Mivtachim Holdings Ltd.: 3,208,394 shares
• Migdal Insurance & Financial Holdings Ltd.: 3,106,157 shares
• Wellington Management Group LLP: 2,457,805 shares

Investor Influence: Beyond Just Shares

The influence of these investors isn't just about voting power; it's structural. For instance, Joshua Alliance, one of the largest individual shareholders (holding an 11% stake as of June 2025), is also a Member of the Board of Directors. That's direct influence-he's not just an investor; he's in the room for every major decision. This level of insider-aligned ownership, with insiders collectively owning about 15% of the company, suggests management's interests are tightly aligned with shareholder returns.

When institutions own the 'lion's share,' as they do here with 57.59%, their collective sentiment drives the stock price, especially during earnings cycles or major product announcements. If a few of these top holders decide to trim their positions, the stock can see a sharp drop, regardless of the company's fundamentals. You need to watch their filings.

Recent Moves and the AI Opportunity

Recent institutional activity suggests a bullish, though cautious, outlook, especially around Similarweb Ltd.'s role in the booming Generative AI (Gen AI) space. The company's Q3 2025 revenue came in at $71.79 million, and the full-year 2025 revenue is guided to be between $285.0 million and $288.0 million. This growth, particularly in data licensing for large language model (LLM) training, is what's attracting fresh capital.

In the third quarter of 2025, we saw significant accumulation from major players. Wellington Management Group LLP, for example, increased its position by over 1.5 million shares, a massive vote of confidence that suggests they see a clear path to future growth. Phoenix Financial Ltd. also added over 1.3 million shares in the same period. This buying activity is a tangible endorsement of the company's strategy, especially its expansion into AI data solutions.

However, it's not all one-way traffic. Some funds, like CenterBook Partners LP, reduced their holdings by over 260,000 shares in the same period, which is a reminder that not every investor agrees on the valuation or the near-term risk profile. This split reflects the current market reality: high growth potential (especially in AI) balanced against the company's forecast of a negative EPS of -$0.24 for the full fiscal year 2025. For a deeper dive into the numbers behind this investor confidence, you can check out Breaking Down Similarweb Ltd. (SMWB) Financial Health: Key Insights for Investors.

Here's the quick math: when big funds are buying millions of shares, they are betting that the company's future earnings power will far outweigh the current negative GAAP net loss. Your action item is to track the next round of 13F filings to see if this accumulation trend continues into Q4 2025.

Market Impact and Investor Sentiment

You're looking at Similarweb Ltd. (SMWB) and wondering who's buying and why the stock moves the way it does. The quick answer is that institutional investors are firmly in control, and their sentiment is cautiously positive, driven by the company's push into Generative AI data, despite persistent net losses.

As of late 2025, institutional investors and hedge funds own a significant chunk-specifically, 57.59%-of Similarweb Ltd.'s stock. This kind of heavy institutional ownership often signals a degree of credibility, but it also means the stock price is highly sensitive to their collective moves. We're seeing a 'Moderate Buy' consensus from Wall Street, which is a good sign.

New players are still entering the game. In the third quarter of 2025 alone, we saw new stakes being acquired, like Larson Financial Group LLC's initial position valued at $25,000, and Wexford Capital LP buying in with a stake worth $64,000. These aren't huge checks, but they show money managers are still initiating positions, not just exiting. The biggest reported institutional holding recently was Migdal Insurance & Financial Holdings Ltd., holding 3,106,157 shares valued at $28.89 million as of October 30, 2025.

• Institutional ownership is 57.59%.
• New money is still starting positions.
• Sentiment is 'Moderate Buy' overall.

Stock Reactions: Why Good News Can Still Mean a Drop

The market's reaction to Similarweb Ltd.'s news in late 2025 has been a classic example of a growth stock paradox: strong operational performance is often overshadowed by the bottom line. For instance, the company reported third-quarter 2025 revenue of $71.8 million, an 11% year-over-year increase, and beat analyst consensus on earnings per share (EPS), reporting $0.05 versus a consensus of $0.02. This is great execution.

The immediate reaction was a gap-up in the stock price, which previously closed at $7.14, opening at $7.70 and trading as high as $8.04 on elevated volume. That's a roughly 12.1% gain in a day. But here's the rub: the stock also saw a drop of 9.5% shortly after the Q3 2025 earnings release. Why? Because the GAAP net loss widened to $(4.33) million from $(2.57) million a year earlier, despite the revenue beat and the fact that management raised its full-year 2025 revenue guidance to a range of $285.0 million-$288.0 million.

Here's the quick math: investors are happy with the top-line growth, but they are unforgiving about the widening GAAP net loss, even if the non-GAAP operating profit was a healthy $4.6 million. The market is still treating Similarweb Ltd. as a growth-at-all-costs story, but it's demanding a clearer path to GAAP profitability. If you want to dive deeper into the fundamentals, you should read Breaking Down Similarweb Ltd. (SMWB) Financial Health: Key Insights for Investors.

Analyst Focus: The Billion-Dollar AI Bet

Analyst perspectives are overwhelmingly positive, but their focus is less on current profitability and more on the enormous, long-term opportunity in data licensing, specifically for large language models (LLMs). This is the core thesis for the 'Buy' ratings.

The consensus price target among 11 Wall Street analysts is $13.38, which suggests an impressive potential upside of 82.34% from the stock's recent price of $7.34. Needham & Company LLC, for example, reiterated a 'Buy' rating and a $14.00 price target, noting that the LLM data opportunity alone could represent a potential $1 billion revenue source. They acknowledge this revenue stream will be a little lumpy (uneven) at first, but the magnitude is what matters.

Still, not everyone is uniformly bullish on the near-term. Jefferies Financial Group adjusted their price target down to $11.00 from $14.00, citing stalled growth, even while maintaining a 'Buy' rating. This split view highlights the tension: the long-term vision is compelling, but the near-term execution on core sales and the pace of the LLM contract wins are what will defintely move the stock in the next few quarters.