New York, Jan 23, 2026, 18:29 EST — After-hours
- After a volatile session, AppLovin shares ticked higher in after-hours trading
- The company dismissed a short-seller report that claimed it had links to money laundering
- Investors are eyeing next month’s earnings for fresh insights on demand and key disclosures
Shares of AppLovin Corporation ticked up 0.5% to $524.41 in after-hours trading Friday, bouncing between $509.36 and $535.68 earlier in the session.
The modest shift wrapped up a turbulent week for the ad-tech company, with traders digesting another short-seller report. These investors, betting a stock will drop, can swiftly alter how risky high-priced growth stocks seem with their public accusations.
On Wednesday, the Palo Alto firm forcefully denied a CapitalWatch report linking it to a money-laundering network. A spokesperson dismissed the story as “rife with false, misleading, and nonsensical allegations,” firmly stating, “we categorically reject the claims made in this report.” 1
CapitalWatch’s report also raised doubts about AppLovin’s ownership and suggested its tools might be exploited to launder money through the mobile ad ecosystem, according to the Investing.com report. AppLovin pushed back, saying its platform employs “Know Your Customer” checks—basic identity verification—plus tax validation, and called the described economics unlikely.
Lawyers wasted no time jumping in. On Thursday night, Pomerantz LLP announced it’s probing claims for AppLovin investors following a report by CapitalWatch. The stock dropped $32.96, or 5.83%, closing at $532.56 on Jan. 21. 2
The company has faced short reports before. Back in March 2025, AppLovin hired Quinn Emanuel partner Alex Spiro to investigate short-report activity. CEO Adam Foroughi stated, “We are fully committed to defending the Company, its operations, and its reputation from those seeking to manipulate the market.” 3
Regulatory scrutiny is in play. Bloomberg News flagged in October that the U.S. Securities and Exchange Commission had been investigating AppLovin’s data-collection practices, Reuters reported then. 4
Some analysts continue to highlight solid results from AppLovin’s ad platform, Axon. Morningstar’s Mark Giarelli recently noted that “AppLovin is driving a 45% higher return on ad spending than Meta Platforms,” according to a Nasdaq.com article referencing his research. 5
Still, the stock’s next move might depend more on confidence than on the numbers. A hint of advertisers stepping back, tighter platform rules, or fresh regulatory action could quickly sour sentiment. Plus, ongoing legal pressures risk turning into a serious drag.
AppLovin plans to release its fourth-quarter and full-year 2025 earnings on Feb. 11, after the U.S. market closes. The company will host a management webcast at 5 p.m. ET. 6
