New York, Jan 30, 2026, 11:54 AM (ET) — Regular session
- AppLovin shares dropped in late morning trading as investors pared back exposure to tech-related stocks.
- Traders zeroed in on the company’s reaction to a recent short-seller report.
- Coming next: AppLovin’s quarterly earnings and guidance, set to drop after the close in mid-February.
AppLovin Corp shares dropped 11.3%, slipping to $504.80 in late morning trading on Friday, after hitting a session low of $495.23. The Nasdaq-listed stock fell $64.44 from its previous close.
The sell-off follows AppLovin’s pushback against a short-seller report from CapitalWatch. The company issued a cease-and-desist letter, labeling the report “defamatory and baseless” and calling its claims “absurd and demonstrably false,” CNBC reports. Short sellers typically publish negative research while wagering that the stock will decline. (LinkedIn)
AppLovin plans to release its fourth-quarter and full-year 2025 results on Feb. 11, right after the U.S. market closes, the company said. Management will hold a webcast that same day. (AppLovin)
Macro headwinds weighed on U.S. stocks, which dipped following President Donald Trump’s nomination of former Fed Governor Kevin Warsh to head the central bank. On top of that, producer prices came in hotter than anticipated, according to a Reuters report. “There is a general sense of hawkishness in the market,” noted Swissquote Bank senior analyst Ipek Ozkardeskaya. (Reuters)
Software stocks showed vulnerability on Thursday. SAP and ServiceNow dropped following updates that stirred fresh concern over AI tools potentially cutting into demand for subscription software, or SaaS, Reuters reported. “Pricing a worst-case scenario that software is dead,” said Adam Turnquist, chief technical strategist at LPL Financial. (Reuters)
AppLovin stands right where these trends converge: software stocks sensitive to rate shifts and advertising spend that can shrink quickly when caution sets in. When sentiment shifts bearish, high-growth firms often get hammered before anyone digs deeper.
AppLovin’s stock remains comfortably above its 52-week low but has slipped significantly from its peak. According to MarketBeat, the 52-week range spans $200.50 to $745.61; as of Friday, the share price sat roughly 32% below that top mark. (MarketBeat)
The downside scenario is straightforward. If the short-seller controversy drags on, it could continuously weigh on positioning. Any hint of weaker ad demand or cautious guidance would only intensify the pressure.
The tone would shift if the numbers were cleaner, the outlook steadier, and management offered a clear distinction between noise and signal. Investors, meanwhile, must brace for whatever unfolds next in rates and risk appetite.
Eyes will be on Feb. 11, as AppLovin releases its earnings after the bell. Beyond the headline numbers, traders want to hear the company’s guidance and any response to the short-seller claims.
