New York, Jan 13, 2026, 18:13 EST — After-hours
- AppLovin shares climbed 1.6% in late trading following a boost to the price target from Morgan Stanley
- The broker maintained an “Overweight” rating on the ad-tech firm
- Fresh options activity is pushing traders to focus on earnings due Feb. 11
AppLovin Corp shares climbed 1.6% to $668.63 in after-hours trading Tuesday, continuing a volatile rebound. Morgan Stanley bumped its price target from $750 to $800 and maintained an Overweight rating.
The call is crucial now as AppLovin’s stock has swung back into momentum mode — steep falls followed by rapid rebounds. Investors are pinning their hopes on next month’s earnings to see if this rally can sustain itself.
In a note on the North America internet sector, Morgan Stanley said 2026 could look “thematically similar” to 2025, with investors favoring companies that deliver “material positive ROIC” from generative AI or GPU-driven tech. ROIC, or return on invested capital, gauges how much profit a company generates from its invested funds; GPUs are the processors behind many AI systems. TipRanks
AppLovin’s shares fluctuated between $643 and $679.27 on Tuesday. The stock’s been on a rollercoaster since late December, hitting a record close of $733.60 on Dec. 22 before plunging sharply into the new year, despite rallying 108% so far in 2025.
AppLovin, the software and AI firm that helps businesses engage and monetize audiences, will release its fourth-quarter and full-year 2025 results on Feb. 11 after U.S. markets close. CEO Adam Foroughi and CFO Matthew Stumpf plan to host a webcast that same day.
Options trading picked up steam as well. The Fly noted a buyer scooped up 2,000 weekly Feb. 6 $650 calls—these give the holder the right to purchase shares at $650 by expiration—and by the previous session, they were looking at about a 20% mark-to-market gain following a jump in the shares.
Traders are keeping an eye on whether broker target changes lead to more sustained momentum or just another rapid squeeze in a stock known for sharp moves on headlines and positioning.
The risk is clear: lofty expectations. Should AppLovin’s February update show softer guidance, signs of weaker ad demand, or any suggestion that margins have topped out, the stock could quickly adjust downward.
Competition plays a role as well. Investors have been sifting through ad-tech stocks, aiming to distinguish platforms delivering consistent, measurable results from those still valued largely on potential.
Mark your calendar for Feb. 11 — that’s when AppLovin will drop its earnings report and host the management webcast. Investors will be watching closely to gauge how the company’s growth story shapes up through 2026.
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