New York, Feb 4, 2026, 4:38 PM ET — After-hours
- AppLovin shares dropped 16.1% to $387.34 but held steady in after-hours trading
- A report on AI startup CloudX shook mobile ad-tech stocks, dragging down AppLovin and Unity
- Investors are shifting focus to the Feb. 11 earnings, seeking clues on competition and advertising demand
Shares of AppLovin Corp dropped 16.1% on Wednesday, slipping to $387.34 by the close—a $74.35 decline—after hitting an intraday low of $382.50. The stock showed little movement in after-hours trading as investors dumped mobile ad-tech names amid renewed concerns that new AI tools might disrupt the industry’s “ad stack.”
The decline comes just a week ahead of AppLovin’s earnings report, where the company must prove growth and margins can withstand automation encroaching on areas once seen as safe. It also highlights how fast “AI disruption” has shifted from hype to a trigger for selling pressure.
The trigger came from a report on startup CloudX, highlighted by AdExchanger as having reached general availability for a platform designed to “rewire the mobile ad stack using AI agents.” This software targets automating parts of the advertising process—deciding which ad appears, to whom, and at what price. According to the report, CloudX, led by CEO and co-founder Jim Payne, employs large language model agents—AI trained on vast text datasets—to replace tasks usually done by engineers and ad-ops teams. Unity Software shares dropped roughly 10%. (Investing)
The broader market added to the pressure. The Nasdaq Composite dropped 1.5% on Wednesday, weighed down by tech shares, while the Dow inched up 0.5%. Outside of big tech, many stocks managed to hold steady. (AP News)
Investors worldwide are shifting away from software and growth stocks amid concerns that emerging AI technologies might disrupt established business models, Reuters reported. Meanwhile, the dollar strengthened following mixed U.S. economic data. (Reuters)
Some analysts say the market might be jumping the gun. Jefferies analyst Brent Thill dismissed worries around Google’s Project Genie launch as “overblown.” He told investors that an influx of AI-generated content could actually boost distribution value — a trend that might help ad platforms, not hurt them. (TipRanks)
Deutsche Bank echoed this view earlier this week, noting that AppLovin’s risk-reward profile had “meaningfully improved” following the selloff triggered by Genie. The bank said it’s still “far too early” to tell how disruptive the tool might be, and laid out scenarios where it could actually boost advertising businesses linked to gaming. (Investing)
Legal chatter is picking up. On Tuesday, Pomerantz LLP announced it’s probing claims for AppLovin investors. (GlobeNewswire)
AppLovin provides software that assists app developers in purchasing ads and monetizing users. Its offerings include the MAX platform along with various marketing tools, per the company profile. (MarketScreener)
The company said it will release its fourth-quarter and full-year 2025 results on Feb. 11 after the U.S. market closes. CEO Adam Foroughi and CFO Matthew Stumpf are set to lead a webcast that day. (AppLovin)
The selloff highlights just how fast sentiment can turn if investors start doubting the “ad stack”—the software chain behind ad auctions and targeting—will hold its value. Should marketers and app developers shift to cheaper, AI-powered platforms sooner than anticipated, AppLovin might see pressure on both pricing and growth.
Next up is the Feb. 11 report. Traders will be watching closely for management’s take on competitive pressures, ad-demand patterns, and whether the company’s edge still hinges on technology or if it’s merely riding the cycle.
