New York, Feb 23, 2026, 11:26 EST — Regular session
- AppLovin shares slid with a broader selloff in software and other high-growth names.
- Investors weighed tariff uncertainty and a fresh “worst-case” AI scenario note making the rounds.
AppLovin Corp (APP.O) shares fell about 9% on Monday, tracking a pullback in software stocks. The stock was down 9.2% at $380.23 in late-morning trade after opening at $401.63 and sliding as low as $376.78.
The move mattered beyond one name. Technology shares led U.S. stocks lower as investors digested renewed uncertainty on trade policy after President Donald Trump announced a new 15% global tariff following a Supreme Court ruling that invalidated most of his earlier tariffs. (Reuters)
A scenario analysis from Citrini Research also landed badly on screens. The note, framed as a “dystopian” downside case for rapid AI advances, sparked selling across software and payments names, with the iShares Expanded Tech-Software Sector ETF (IGV) down about 5% as it circulated. (Investing)
The jitters are showing up beyond equities. Software borrowers have delayed debt deals as lenders demand more yield and tougher protections, and UBS credit strategist Matthew Mish said, “We expect AI disruption risk to be increasingly reflected over 2026 to early 2027.” (Reuters)
AppLovin has its own overhang. Bloomberg News reported on Friday that the U.S. Securities and Exchange Commission’s probe into the company is “still active and ongoing,” after the agency declined to release documents tied to the inquiry; the regulator has not accused AppLovin or its executives of wrongdoing. (Reuters)
The selling comes despite upbeat recent operating signals. AppLovin earlier this month beat fourth-quarter sales estimates and forecast first-quarter revenue of $1.75 billion to $1.78 billion, but the company faces a tighter fight for ad dollars and pressure from larger rivals as the macro picture stays uneven. (Reuters)
Traders are watching whether Monday’s drop turns into another multi-day de-risking wave in high-multiple software, or whether buyers step back in once the broader market steadies.
But the setup cuts both ways. If tariff headlines keep moving markets and the AI “disruption” narrative keeps spreading from software into ad tech, investors can keep marking down the group; any escalation on the regulatory front would add another layer of uncertainty.
Next up, investors will look to Nvidia’s results on Wednesday, Feb. 25, after the market close, as a litmus test for the AI trade — and for risk appetite in the software names that have been whipsawed in February. (Nvidia)
