New York, February 14, 2026, 10:29 EST — Market closed
- AppLovin shares closed up on Friday, recovering after some wild post-earnings volatility in the ad-tech stock.
- Several Wall Street firms cut their price targets following the quarterly results, though guidance still topped forecasts.
- With Washington’s Birthday keeping U.S. markets closed on Monday, trading won’t pick back up until Tuesday.
AppLovin Corp wrapped up Friday at $390.55, gaining 6.6%. Shares bounced between $359.18 and a session high of $394.10.
The timing is key here: the stock’s tangled up in a broader “AI scare trade” that’s sent investors rushing to offload anything at risk of being overtaken by new tech. Barclays equity strategist Emmanual Cau described the mood as “sell first think later.” Over at Dakota Wealth, senior portfolio manager Robert Pavlik highlighted the mounting view that AI might disrupt established business models faster than many anticipated. (Reuters)
AppLovin managed to beat December-quarter sales expectations and projected stronger-than-anticipated revenue for the first quarter, injecting some momentum this week. Shares, however, lost ground in after-hours trading. Analysts pointed to stiffer competition for ad budgets and a wary climate from the broader economy. Jefferies analysts also flagged Meta Platforms’ aggressive moves on Apple’s iOS traffic, warning this could ramp up auction battles, drive up ad costs, and put pressure on margins. (Reuters)
AppLovin turned in fourth-quarter revenue of roughly $1.658 billion, with adjusted EBITDA landing at $1.399 billion. Free cash flow hit $1.31 billion. The company reported buying back and withholding 6.4 million shares in 2025 at a cost of $2.58 billion. Looking ahead, AppLovin put its first-quarter adjusted EBITDA forecast between $1.465 billion and $1.495 billion, pointing to an 84% margin for the metric. Adjusted EBITDA—stripping out interest, taxes, depreciation, and some other costs—remains the company’s preferred profit gauge. (Applovin)
Sell-side analysts didn’t waste time recalculating. Eric Sheridan of Goldman Sachs left his Neutral call unchanged but dropped his price target sharply, down to $585 from $710. Over at Wells Fargo, Alec Brondolo stayed Overweight, though he slashed his target to $543 from $735, according to Benzinga. Nat Schindler at Scotiabank took the opposite tack—raising his target to $775 from $750. (Benzinga)
Morgan Stanley cut its price target on AppLovin to $720, down from $800, but maintained its Overweight rating. The firm described AppLovin as a “great business on sale,” according to TheFly. (TipRanks)
Traders are getting a muddled near-term picture. AppLovin isn’t following a steady fundamental path—instead, it’s behaving like a high-beta barometer for risk appetite.
The downside risk still hangs over the tape. Should advertisers pull back on spending, or if larger competitors decide to drive up mobile inventory prices by bidding harder, it’s the company’s guidance—and those notably wide margins—that will likely come under immediate market scrutiny.
The holiday schedule squeezes decision-making. With U.S. markets shut Monday for Washington’s Birthday, investors get a pause—time to absorb the fresh analyst calls and the ongoing AI-fueled drop before things pick up again on Tuesday. (New York Stock Exchange)
Growth stocks that are sensitive to interest rates may see some action later this week when the Federal Reserve drops minutes from its January 27–28 meeting. The release lands Wednesday, February 18. (Federal Reserve)
All eyes turn to AppLovin’s next move: APP’s trading action as U.S. markets come back online Tuesday will be the story, with attention on whether that Friday bounce survives the holiday pause.
