New York, January 22, 2026, 17:18 EST — After-hours trading
- AppLovin shares dropped 2% on Thursday, then held steady in after-hours trading.
- This week, a short-seller report alleged that the ad-tech firm has links to money laundering; AppLovin swiftly denied the claims.
- The next clear catalyst investors are eyeing is the company’s Feb. 11 results.
AppLovin shares dropped another 2% Thursday, closing at $521.94. After-hours trading showed little movement. During the day, the stock fluctuated between $514.67 and $539.86. (Investing)
The latest drop adds to the pressure on a stock already swinging wildly as traders balance headline risk with the company’s growth narrative. Volatility has spiked since a short-seller report emerged early this week and dominated trading activity.
The reason this matters now is straightforward: the market sees it as a test of credibility. If investors believe the allegations could involve regulators, app-store operators, or ad buyers, the stock could jump sharply on any fresh developments.
For a company providing marketing and monetization tools to app developers, these questions hit a nerve. Digital ads rely heavily on trust and access—lose either, even briefly, and the whole system faces serious strain.
Tuesday saw short seller CapitalWatch release a report accusing AppLovin of connections to money laundering and other serious allegations. AppLovin did not reply to requests for comment at the time, according to Investing.com. (Investing)
One day later, a spokesperson for the company fired back in an email, calling the report “rife with false, misleading, and nonsensical allegations.” They added, “we categorically reject the claims made in this report.” According to the statement, AppLovin employs “Know Your Customer” checks—a standard identity-screening measure—along with other safeguards to spot illicit activity. (Investing)
The episode also reignites a common concern among investors: regulatory scrutiny. Bloomberg News reported in October that the U.S. Securities and Exchange Commission has been investigating AppLovin’s data-collection practices, according to Reuters. (Reuters)
On a broader scale, traders face a messy environment when trying to price risk in real time. Short reports might vanish quickly—or drag on as a slow bleed if customers, partners, or regulators begin probing.
The risk is the saga drags out, stoking volatility and pushing investors to demand a bigger discount for a stock already priced for high hopes. Even without a formal outcome, the shares remain vulnerable to whatever headline comes next.
AppLovin is set to release its fourth-quarter and full-year 2025 earnings on Feb. 11, after U.S. markets close. The company also plans to hold a management webcast that day, according to AppLovin.
Traders will be on the lookout for any further moves from the company, reactions from platforms or advertisers, and whether selling pressure eases once the U.S. market kicks back in on Friday.
