New York, Feb 24, 2026, 19:23 (EST) — After-hours
- Shares of AppLovin bounced back Tuesday, recovering from a sharp decline the previous day.
- On one hand, the software sector is seeing a broad rebound. Still, an ongoing SEC investigation continues to cast a shadow for traders.
AppLovin Corp clawed back some ground Tuesday, finishing 3.3% higher at $393.20 after a sharp 9.1% drop the previous session. The stock traded between $366.67 and $398.11 during the day. Volume came in at roughly 4.54 million shares, a notable pullback from Monday’s tally of 7.21 million, Investing.com data show. (Investing.com)
Timing is key here. Investors have been hunting for any hint that the software sector’s slide might be losing steam. Anthropic, the AI startup, announced it’s rolling out new “plug-ins” with partners—news that’s being interpreted by some in the market as a sign of broader uptake, not just shakeup. “We feel positive to see companies partnering with Anthropic,” said Eric Kuby, chief investment officer at North Star Investment Management. Dennis Dick, chief market strategist at Stock Trader Network, called software names “massively oversold,” and pointed out that real disruption could still be “years out.” (Reuters)
AppLovin has another headache. Traders remain on edge after Bloomberg reported that the U.S. Securities and Exchange Commission described its probe into the company as still “active and ongoing.” According to Barron’s, investigators are looking into whether AppLovin broke service agreements with platform partners while trying to improve ad targeting. Shares have tumbled roughly 49% from the $733.60 peak hit on Dec. 22. (Barron’s)
AppLovin makes marketing and ad-tech tools that help app publishers find users and generate revenue. The shares have turned into something of a volatile barometer for software valuations, anxiety about AI upending the sector, and worries over regulatory crackdowns.
AppLovin CFO Matthew Stumpf and CTO Vasily Shikin each reported via a pair of Form 4s on Tuesday that the company withheld shares to meet tax liabilities from vesting RSUs. According to the filings, “This transaction is not a sale of shares” by either executive. Specifically, Stumpf had 2,362 shares withheld, while Shikin had 2,747, both at $418.68 per share. (SEC)
Filings like these are nothing unusual. But with AppLovin, even standard disclosures draw a crowd—shares have shown they’re sensitive to shifts in risk appetite and can move fast.
Still, there’s a clear risk here: should the SEC’s investigation drag out or conclude with enforcement, any recovery in the shares could quickly disappear. With the probe’s scope still undefined, investors remain jittery over what AI disruption could mean for software firms’ pricing leverage.
On Wednesday, traders will be alert for new statements from the company or regulators. The key question: can Tuesday’s rebound in software stocks carry into another session?
Nvidia’s quarterly report lands Wednesday, and it’s shaping up as the next major test for the tape. “People are so concerned about AI spending — whether we’re in a bubble,” Spear Invest’s chief investment officer Ivana Delevska told Reuters, highlighting just how fast tech sentiment can shift and pull volatile stocks like AppLovin along for the ride. (Reuters)
