New York, Feb 5, 2026, 17:59 ET — After-hours
- AppLovin shares edged lower in late trading after another volatile session for the ad-tech stock.
- A Wedbush analyst cut his price target, pointing to a valuation reset and headwinds.
- Investors are bracing for Feb. 11 results as talk of AI-driven competition swirls.
AppLovin shares fell 3.1% to $375.23 in after-hours trading on Thursday, after swinging between $360.13 and $401.10 earlier in the session.
The move lands with the stock already on a short fuse. A broad selloff has hit software and services names as investors debate whether new AI tools will start eating into established business models, wiping about $830 billion in market value from the group since late January, Reuters reported. (Reuters)
Wall Street’s tone did not help on Thursday. The Nasdaq ended sharply lower as investors fretted over a fresh wave of heavy AI spending and whether it will translate into profits, Reuters said, with SimCorp’s Melissa Brown calling last year’s “AI trade” an “extinguisher” this year. (Reuters)
On the AppLovin-specific side, Wedbush analyst Michael Pachter cut his price target on the stock to $465 from $800 while keeping an Outperform rating, citing a reset in valuation amid softer industry sentiment and potential headwinds. Wedbush said AppLovin’s push into e-commerce and, eventually, connected TV could help offset competitive pressure, but flagged regulatory issues and weaker e-commerce data from rivals as reasons to re-rate the stock. (TipRanks)
Competition jitters have also grown louder this week after industry publication AdExchanger reported that CloudX, a mobile-ad platform, launched into “general availability” on Wednesday — meaning the product is now broadly available. AdExchanger said CloudX is using large language model agents, or AI systems trained on vast text data, to automate ad-operations tasks, quoting CEO Jim Payne: “There’s a limit to what a single ad monetization person can do.” (AdExchanger)
CloudX, on its website, said it is now generally available with seven bidders — Meta, Unity, Liftoff, Magnite, InMobi, Mintegral and Moloco — competing in the same auction, and it highlighted early partnerships with publishers including Scopely and 52 Entertainment. (Cloudx)
AppLovin’s slide accelerated a day earlier. The stock dropped 16.1% on Wednesday to around $387 on heavy volume, after trading as low as $382.40, MarketBeat reported. (MarketBeat)
The selling has not looked like a routine tech dip. In the software sector more broadly, dip-buyers have been “not as eager” and options flows have stayed “overwhelmingly defensive,” Reuters reported, citing Interactive Brokers strategist Steve Sosnick and Susquehanna’s Chris Murphy. (Reuters)
Next week brings a hard catalyst. AppLovin said it will report fourth-quarter and full-year 2025 results on Feb. 11 after the U.S. market closes and host a webcast at 5 p.m. ET, led by CEO Adam Foroughi and CFO Matthew Stumpf. (AppLovin)
But the stock’s whipsaw cuts both ways. A Pomerantz law firm notice this week said it is investigating claims on behalf of AppLovin investors, citing a CapitalWatch report that alleged the company was tied to illicit funds — the sort of headline risk that can keep some funds on the sidelines even as others hunt for a bottom. (GlobeNewswire)
For now, traders head into Friday watching for any easing in the software selloff and for follow-through on CloudX headlines. The bigger test comes after the bell on Feb. 11, when AppLovin’s results and guidance will show whether its ad engine can keep delivering through a fast-shifting market.
