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. 1
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. 2
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. 3
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.” 4
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. 5
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. 6
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. 7
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. 8
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. 9
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.
