New York, January 25, 2026, 16:03 EST — The market has closed.
- After a choppy session, AppLovin shares closed Friday a bit higher.
- The company’s denial has done little to shake off the overhang created by short-seller allegations.
- Investors are eyeing the Fed decision this week and AppLovin’s earnings report in February.
AppLovin shares (APP.O) start Monday weighed down by lingering short-seller pressure, having closed Friday at $524.41. The stock has dropped roughly 22% since Dec. 31 and fell another 0.7% in after-hours trading to $520.92. 1
The swings carry extra weight now that AppLovin is part of the S&P 500, triggering more activity from passive funds and index-linked flows. This inclusion also means the stock draws more attention whenever tech volatility picks up. 2
The Federal Reserve meets Jan. 27-28, kicking off a packed week of U.S. earnings that could shift views on high-multiple growth stocks. “At the end of the day, earnings are the driver,” said Franklin Templeton strategist Chris Galipeau in a Reuters report. 3
Trouble for AppLovin kicked off Tuesday when short-seller CapitalWatch released a report claiming ties to money laundering. The stock reacted swiftly, dropping up to 4.7% in premarket trading, per an Investing.com story.
On Wednesday, AppLovin fired back at the report, labeling it “rife with false, misleading, and nonsensical allegations” in an emailed statement to Investing.com. The company went further, saying it “categorically reject[s]” the accusations and stressed it has no control over who buys, holds, or sells its shares. 4
The short-seller assault also brought AppLovin’s data practices back into focus following an October Reuters report that the U.S. SEC was investigating the company’s data-collection methods, citing a Bloomberg News report and sources familiar with the situation. Reuters noted the regulator hadn’t accused AppLovin or its executives of any misconduct. 5
Certain analysts remain bullish on AppLovin, highlighting its role as a key player in mobile gaming advertising and its expanding e-commerce performance segment. Evercore ISI’s Robert Coolbrith kicked off coverage earlier this month with an Outperform rating and an $835 price target, dubbing AppLovin the “dominant” platform in mobile gaming ad tech, according to TheFly via TipRanks. 6
Supporters highlight Axon, AppLovin’s AI-driven ad recommendation engine, and its result-based pricing model, such as “cost-per-action,” where advertisers pay only when a user takes a specific action, not just for ad impressions. Morningstar analyst Mark Giarelli noted in a Nasdaq.com report that Axon has outperformed Meta’s ad tools and other platforms in return on ad spend. The piece also drew a contrast between AppLovin’s method and that of competitors like The Trade Desk. 7
The broader market showed volatility as well. The Nasdaq edged up 0.28% on Friday, while the Dow dropped 0.58%. Intel’s earnings outlook hurt risk appetite, Reuters noted. 8
AppLovin is set to unveil its quarterly numbers soon, releasing fourth-quarter and full-year 2025 results after the U.S. market wraps up on Feb. 11. CEO Adam Foroughi and CFO Matthew Stumpf will host a 5 p.m. ET webinar to discuss the report. 9
Yet the stock’s recent rollercoaster ride proves how fast sentiment can shift. Fresh info linked to the short report, a regulatory update, or a cautious February outlook might slam the shares again.
Traders will be eyeing Monday’s open for signs of momentum. The next key milestones are the Fed’s decision on Wednesday and AppLovin’s earnings report on Feb. 11.
