New York, February 18, 2026, 13:02 EST — Regular session
- AppLovin stock climbed, joining a wider tech rally, while investors kept an eye on the upcoming Fed minutes.
- APP is still down significantly for the year, after swings fueled by AI rivalry worries and chatter from short sellers.
- Traders are eyeing if the rebound can stick through the afternoon — and into next week.
AppLovin Corp shares jumped roughly 7% Wednesday, bouncing back as investors rotated into beaten-up tech stocks. The stock traded at $403.00, up $26.62, having earlier hit $404.57.
U.S. stocks climbed alongside a broader tech-driven rally, as investors attempted to shrug off this month’s “AI disruption” worries that have rattled software and internet shares. Attention turned to possible new rate clues expected later this day. (Reuters)
Why it matters now: AppLovin’s been square in the crosshairs on the 2026 tape, drawing a wave of short-seller attention as tech names get hammered and investors start to rethink the lofty multiples slapped on so-called “AI winners.” Shares have plunged almost 40% this year, according to Business Insider, which means they’re exposed to violent short-covering as sentiment or positions flip. (Business Insider)
AppLovin’s fourth-quarter numbers—out last week—still loom large. The company topped sales estimates and set its first-quarter revenue outlook at $1.75 billion to $1.78 billion, ahead of consensus. Even so, management warned about a more difficult ad-spend environment and rising competition for ad budgets. Shares dropped almost 6% in after-hours action following the release. (Reuters)
AppLovin’s latest SEC filing showed fourth-quarter revenue hitting $1.658 billion, with net income coming in at $1.102 billion. Free cash flow for the quarter reached $1.31 billion. For the first quarter, the company projected adjusted EBITDA between $1.465 billion and $1.495 billion—a figure that excludes certain expenses. (SEC)
CEO Adam Foroughi didn’t shy away from the topic of the stock’s sharp moves during the earnings call, telling listeners, “the recent volatility warrants addressing.” He pointed to the company’s “own AI models” as a key reason for solid operating performance. (The Motley Fool)
Investors have been quick to react to external criticism. Shares snapped back earlier this month after a well-known detractor softened some of the claims, according to Investopedia. (Investopedia)
Still, that bounce doesn’t look stable. AppLovin operates in a packed ad market, where prices shift fast and investors keep changing their minds over whether fresh AI tech will boost ad platforms or chip away at their advantage.
Macro takes the spotlight next, with investors zeroing in on the Federal Reserve’s latest meeting minutes, out at 2 p.m. EST. They’ll be combing through for any sign officials are rethinking the balance between inflation risks and potential rate cuts. (Reuters)
