NEW YORK, January 3, 2026, 04:31 ET — Market closed
- AppLovin shares closed down 8.2% on Friday, extending a sharp pullback from late-December highs.
- The drop stretched APP’s losing streak to seven sessions and made it the S&P 500’s worst performer on the day, Barron’s reported. 1
- Next week’s U.S. jobs report and inflation data loom for high-growth stocks as traders reassess rate-cut expectations. 2
AppLovin Corp (APP.O) shares slid 8.2% to end Friday at $618.32, after swinging between $688.36 and $611.06 in the first U.S. session of 2026.
The selloff matters now because AppLovin has become a momentum trade — a stock investors piled into because it kept rising — and those positions tend to unwind quickly when the calendar turns and money managers rebalance. A sharp break can also draw in rules-based selling tied to price trends, magnifying day-to-day moves.
The decline extended APP’s losing streak to seven sessions from an all-time closing high of $733.60 on Dec. 22, Barron’s reported, citing Dow Jones Market Data. Barron’s said the drop came during the “Santa Claus rally,” a seasonal stretch when stocks often rise, and left AppLovin as the S&P 500’s worst performer on the day. 1
The broader market did not mirror the move. The S&P 500 and Dow finished higher on Friday while the Nasdaq ended slightly lower, as investors weighed Treasury yields and the outlook for Federal Reserve policy. 3
With no fresh company announcements driving the tape, traders largely framed Friday’s drop as profit-taking after a steep run and a test of whether dip-buyers still show up in size. That dynamic can turn volatile fast when a stock has been priced for strong growth.
AppLovin also underperformed key ad-tech peers on the day. The Trade Desk fell 0.8%, Unity Software was little changed, and Digital Turbine dropped 4.3%, based on closing data.
The company has been repositioning toward advertising technology after shedding parts of its gaming exposure. In May 2025, Tripledot Studios agreed to buy AppLovin’s mobile games studio portfolio for about $800 million in cash and stock, Reuters reported. 4
Regulatory scrutiny has also hung over the shares. Reuters reported in October that the U.S. Securities and Exchange Commission had been probing AppLovin’s data-collection practices, after allegations it violated platform partners’ service agreements to deliver more targeted ads. 5
AppLovin has pushed back against short-seller claims in the past. “We are fully committed to defending the Company, its operations, and its reputation from those seeking to manipulate the market through false narratives,” CEO Adam Foroughi said in a March 2025 statement. 6
For investors, the immediate question is whether APP can stabilize after breaking below recent trading ranges. A hold above the low-$600s would ease pressure, while another push lower would keep attention on how quickly high-momentum names can reprice when sentiment cools.
Before next session, the macro calendar is likely to do some of the heavy lifting. The U.S. jobs report due Jan. 9 and the consumer price index on Jan. 13 are among the near-term events that could shift expectations for interest rates — and, by extension, valuations for growth stocks like AppLovin. 2
Before next session, investors will also start looking further out to AppLovin’s next quarterly update. Zacks’ earnings calendar currently points to a report around Feb. 11. 7
