New York, Feb 24, 2026, 2:01 PM EST — Regular session rolls on.
- AppLovin shares climbed roughly 4% during afternoon trading, after a volatile session earlier in the day.
- U.S. software names are climbing back after a sharp selloff linked to worries over AI-driven upheaval. The bounce follows that recent swoon.
- Reports that the SEC probe into AppLovin is still “active and ongoing” have traders on edge.
AppLovin stock rallied 4.4% to $397.23 on Tuesday as tech names snapped back, the Nasdaq-listed shares regaining ground after a stretch of heavy volatility.
This is notable: AppLovin has turned into a high-beta stand-in for two clashing bets—the “AI changes everything” optimism driving up select tech names, and the fears about AI’s impact on margins, jobs, and regulation. The result? Individual stock moves like this one pack more punch. Investing.com
For AppLovin, investors continue to weigh the potential fallout from a still-active U.S. Securities and Exchange Commission probe. What happens next, or how much risk remains on the table, isn’t clear yet.
Shares swung between $366.67 and $397.32 over the session, underlining just how sharply sentiment keeps shifting.
U.S. software stocks bounced Tuesday, reversing some of the heavy selling that’s hit the sector lately over worries about AI upending traditional business models. The main software ETF (IGV) surged, while a handful of AI-linked partners clocked notable gains.
“Software stocks, and especially the IGV, are just massively oversold right now,” said Dennis Dick, chief market strategist at Stock Trader Network. Investing.com
AppLovin faces its own unique pressure. On Feb. 20, Bloomberg said the SEC described its probe into AppLovin as “active and ongoing” in a letter, refusing to release documents because of the continuing investigation. Reuters
The SEC hasn’t alleged any misconduct by AppLovin or its leadership. Both the regulator and the company stayed silent when asked by Bloomberg, according to Reuters.
The company’s stuck handling fresh probe headlines, even as it pushes to highlight gains in its advertising unit. AppLovin, for its part, put out a first-quarter sales outlook earlier this month: $1.75 billion to $1.78 billion—topping what Wall Street was looking for, as per Reuters.
Jefferies analysts see competitive threats looming in Apple iOS ad auctions, with Meta Platforms’ aggressive bidding likely to squeeze margins, according to Reuters.
Bulls face a clear risk here: a probe might widen, carry on longer than expected, or result in enforcement or operational shifts — tough scenarios to quantify, particularly with the stock already seeing big daily moves.
Investors are waiting for either fresh word on the SEC situation—regulatory updates or any statements from the company—or the next earnings release. Investing.com pegs that report for May 13.
