New York, Jan 29, 2026, 11:45 ET — Regular session
- AppLovin shares climbed roughly 2% in late-morning action, bouncing back from a shaky start to the week.
- The move came after the company issued a cease-and-desist letter to short seller CapitalWatch, demanding a retraction.
Shares of AppLovin Corporation climbed 1.7% to $551.58 in late-morning trading Thursday following news the advertising software company has called for a retraction of a recent short-seller report. (Mobilegamer)
The letter is significant as AppLovin’s stock has been volatile this month, with traders quick to react against news on governance and compliance. The shares dropped almost 6% on Jan. 21 but have climbed in three of the past four sessions, leaving the stock still trying to find a stable footing. (Investing)
Mobilegamer.biz, referencing CNBC, reported that AppLovin issued CapitalWatch a cease-and-desist letter, labeling the allegations as “defamatory and baseless.” The company also dismissed the report as filled with “numerous absurd and demonstrably false statements.” (Mobilegamer)
Short sellers borrow shares to sell now, hoping to repurchase them cheaper later; this strategy can magnify price swings, especially when a stock faces heavy shorting or weak conviction. AppLovin has frequently been targeted by short reports, with each fresh wave often spilling over into options trading and momentum-driven moves.
The company’s move beyond mobile-game ads into e-commerce marketing has become another tailwind, with investors trying to size up the potential of this next growth phase. Needham upgraded the stock to “buy” from “hold” this week, setting a $700 price target. They highlighted rising adoption of AppLovin’s Axon tools and fresh e-commerce brands jumping on board. Analyst Bernie McTernan noted, “it is still early days.” (Barron’s)
AppLovin’s focus on e-commerce is what still puts it in the same league as much bigger ad platforms, though the comparison is far from perfect. The stock behaves more like a leveraged bet on how well the company executes. The real test going forward: can it keep onboarding web advertisers without margins slipping or stricter platform regulations cutting in?
On the downside, it’s simple: expect more volatility, tighter scrutiny, and less room for errors. Bloomberg reported in October that the U.S. Securities and Exchange Commission is investigating AppLovin’s data-collection methods. This cloud could darken further if regulators or platform partners intensify their review of ad targeting tactics. (Reuters)
Investors are keeping an eye on whether the legal battle over CapitalWatch will dampen the momentum or prolong the saga, leaving the stock vulnerable to a steady drip of headlines. A turbulent trading tape can inflict real harm if it lines up with weak guidance or a disappointing miss.
AppLovin plans to release its fourth-quarter and full-year 2025 earnings on Feb. 11, right after the U.S. market shuts. A management webinar will follow at 5:00 p.m. ET. (Applovin)
