New York, February 16, 2026, 10:46 EST — The market has closed.
- U.S. stock markets will be closed Monday for Presidents Day. Trading picks up again Tuesday.
- AppLovin shares finished up in the latest session, capping off a choppy period for software and ad-tech stocks.
- Fresh analyst resets are drawing investor attention, along with signals on inflation and the Fed set for this week.
AppLovin Corp ended Friday at $390.55, up 6.4%. U.S. markets shut Monday for a holiday, so trading resumes Tuesday. (Reuters)
After a tough stretch for some software stocks—investors have been dumping shares vulnerable to pressure from artificial-intelligence advances—the sector finally caught a break. AppLovin, for one, rebounded Friday as broader U.S. markets found their footing. (AP News)
Why is that relevant now? AppLovin has turned into a sentiment barometer—sometimes tracking ad market swings, sometimes trading like a software play, and recently drawing the “AI disruption” crowd. With one more day on pause, investors get a chance to separate the static from the substance.
Barron’s, over the weekend, noted that CapitalWatch—well known for its criticism of AppLovin—has pulled its allegations and won’t be covering the company further. In the same piece, Morgan Stanley reiterated its Overweight, though the price target dropped to $720. BofA Securities left its Buy unchanged but took its target down to $705. (Barron’s)
AppLovin’s fourth quarter numbers remain in focus. The company reported $1.66 billion in revenue, and its sales outlook for the first quarter landed between $1.75 billion and $1.78 billion—topping analyst expectations, according to Reuters. Jefferies analysts, cited by Reuters, pointed to tougher ad competition, noting the risk that Meta could ramp up its bidding on Apple’s iOS traffic. (Reuters)
AppLovin reported operating cash flow of $1.31 billion for the quarter, with 0.8 million shares repurchased and withheld at a cost of $481.7 million, according to its earnings release. For the year, share repurchases and withholdings hit 6.4 million shares, totaling $2.58 billion. Looking ahead, the company is targeting an adjusted EBITDA margin of 84% this quarter. Adjusted EBITDA, as defined by AppLovin, excludes certain expenses like interest, taxes, and non-cash charges. (AppLovin)
CEO Adam Foroughi, during the call, noted that certain advertisers report, “Performance on our platform is really good.” CFO Matt Stumpf added, “very confident in the margin level that we’re at today.” (Investing.com)
Jefferies’ James Heaney stuck with his buy rating, shrugging off the drop as “overblown.” (Investors)
Still, the risks haven’t gone anywhere. AppLovin is under investigation by the U.S. Securities and Exchange Commission for its data-collection practices, according to a Reuters story from October. The company’s also caught plenty of heat from short-sellers, a combination that can spark a fresh bout of volatility without much warning. (Reuters)
Investors return Tuesday watching to see if Friday’s bounce has legs, and whether fresh research notes trickle out post-holiday. Macro data might steal the spotlight as the week rolls on: the Fed drops minutes from its January meeting on Wednesday (Feb. 18), while the personal consumption expenditures price index lands Friday (Feb. 20)—that’s the Fed’s go-to measure for inflation. (kiplinger.com)
