New York, January 14, 2026, 15:51 EST — Regular session
AppLovin shares dropped 7.3% to $619.79 in afternoon trading Wednesday, despite Evercore ISI kicking off coverage with an Outperform rating and a $835 price target. The day before, Morgan Stanley lifted its price target to $800 and maintained an Overweight rating, according to GuruFocus.
The move came as U.S. stocks slipped, dragged down by tech and financial sectors, with the Nasdaq retreating 1.35%. “After a nice run, and so-so or mediocre earnings, you’re seeing profit-taking and consolidation,” Michael O’Rourke, chief market strategist at JonesTrading, said. Reuters
AppLovin’s recent rally has moved its shares firmly into the “priced-for-growth” territory, making the stock sensitive to sharp swings on any negative news. The company will release its fourth-quarter and full-year 2025 earnings on Feb. 11, after the U.S. market closes. AppLovin
Evercore described AppLovin as an expanding ad platform, anchored by mobile gaming with e-commerce performance advertising set to drive the next phase. The firm projects mobile gaming ad spend to climb roughly 23% annually through 2028. It also expects combined mobile gaming and e-commerce operations to deliver over 30% revenue and EBITDA growth through that year; EBITDA stands for earnings before interest, tax, depreciation, and amortization. Evercore noted the stock currently trades near 36 times fiscal 2026 EV/EBITDA—a standard valuation metric—and labeled the risk of deplatforming, meaning major mobile platforms blocking access, as “truly remote.” Investing.com
The stock has drawn plenty of strong calls, yet Wednesday’s trading made clear how fast they can vanish amid market moves. AppLovin shot up 104% in 2025, according to Barron’s, but slid almost 10% year-to-date in 2026 through Wednesday and at one point was the S&P 500’s worst performer that day.
Macro cross-currents complicated the picture. U.S. retail sales jumped 0.6% in November, while producer prices nudged up 0.2%, Reuters reported, citing delayed data due to the lengthy federal government shutdown. Investors are parsing what this means for growth and inflation. The Federal Reserve is widely expected to hold rates steady between 3.50% and 3.75% at its January 27-28 meeting, the report added.
Regulation and platform policy continue to loom as major downside risks for AppLovin. Bloomberg News reported in October that the U.S. Securities and Exchange Commission is investigating the company’s data-collection practices, per Reuters. The SEC has not formally accused AppLovin or its executives of any wrongdoing. Meanwhile, AppLovin maintains it does not comment on potential regulatory probes.
Evercore’s view positions AppLovin nearer to the top-tier ad platforms than most investors have assumed. Analyst Robert Coolbrith at Evercore suggested AppLovin might evolve into a leading e-commerce marketing channel, competing with the likes of Google, Meta, and Amazon, according to Investors.com.
Before AppLovin’s earnings, the Bureau of Economic Analysis will drop its “Personal Income and Outlays” report for October and November 2025 on Jan. 22 at 10 a.m. ET. This release features the Fed’s favored PCE inflation metrics, which often shift rate outlooks and can have a direct impact on high-multiple tech stocks. bea.gov
