New York, Feb 3, 2026, 11:47 (EST) — Regular session underway.
- AppLovin shares dropped roughly 4%, hitting $463.90 in late morning trading.
- Unity and Roblox fell as investors remained cautious about AI’s effects on gaming stocks.
- Wall Street is turning its attention to AppLovin’s earnings and guidance set for Feb. 11.
Shares of AppLovin Corp dropped roughly 4% on Tuesday, hitting $463.90 by 11:47 a.m. EST. The stock remains under strain following a steep selloff in late January.
That’s significant given the size of the moves. AppLovin ended January down 30%, shaken by several factors hitting risk appetite. A fresh short-seller report — an investor’s bearish research note — rattled sentiment, alongside fears that new AI tools might upend parts of software and gaming.
Investor sentiment took a hit. On Tuesday, software and advertising stocks plunged further amid doubts about whether established firms can hold onto their business models as AI technology advances. “The software companies were assumed to be winners from AI,” noted Lars Skovgaard, senior investment strategist at Danske Bank. Reuters
Game-linked stocks lagged the broader market once more. Unity Software dropped roughly 11%, and Roblox declined around 5.5%. Meanwhile, the Nasdaq-heavy Invesco QQQ Trust fell about 1.4%, and the SPDR S&P 500 ETF edged down approximately 0.6%.
Google DeepMind’s “Project Genie,” a new prototype that lets users build and navigate interactive 3D worlds using text or image prompts, has sparked fresh debate. Deutsche Bank weighed in, saying AppLovin’s risk-reward profile “meaningfully improved” following the selloff. The bank also cautioned it’s “far too early” to assess Genie’s disruptive potential, noting that increased game content could boost ad activity in certain scenarios. Investing.com
Benchmark Equity Research dismissed the threat narrative in a Monday note following Google news that rattled some in the gaming sector. “AI-native creation changes how games are built, but not how they are discovered, acquired, or monetized,” said Benchmark analyst Mike Hickey. Barron’s
AppLovin announced it will release its fourth-quarter and full-year 2025 earnings on Feb. 11, after U.S. markets close. CEO Adam Foroughi and CFO Matthew Stumpf will hold a webcast at 5 p.m. ET.
Investors are keen to hear how management describes demand for mobile advertising and app monetization tools, and if the company expects any ripple effects from AI-driven shifts in game development.
The risk list remains extensive. AppLovin, often targeted by short-sellers, last month firmly denied money-laundering accusations linked to a CapitalWatch report, labeling the claims “false, misleading, and nonsensical.” Investing.com
Traders are bracing for continued volatility heading into next week. All eyes turn to Feb. 11, when AppLovin releases its earnings and updates its business outlook.
