New York, Feb 17, 2026, 10:48 EST — Regular session
- AppLovin shares slipped roughly 4% early Tuesday, following Monday’s market holiday.
- After last week’s AI-driven tech rout and the company’s quarterly release, the stock is still swinging.
- Friday’s PCE inflation data has traders watching closely, looking for the next major macro signal.
AppLovin Corporation (APP.O) dropped roughly 4% Tuesday morning, sinking to $374.81 following an earlier high of $388. Shares were recently off $15.74 versus Monday’s $390.55 close.
U.S. stocks slipped after the holiday break, tech names dragging the market down as investors fretted over fresh AI threats to established business models. Alibaba’s launch of its Qwen 3.5 AI model only fueled the jitters. “You are seeing a rebalance,” said Stash Graham, managing director and CIO at Graham Capital Wealth Management. (Reuters)
AppLovin has turned into something of a bellwether for the AI-disruption theme, thanks to its high-beta stock. Shares plunged 19.7% on Feb. 12 after its fourth-quarter report, marking the steepest drop in the S&P 500 software index that day. “We see this as a ‘prove it’ year for AI,” said Jack Herr, primary investment analyst at GuideStone Funds. (Reuters)
AppLovin posted a 66% jump in fourth-quarter revenue, bringing in $1.658 billion, and reported diluted earnings of $3.24 per share on Feb. 11. Looking ahead, the company expects first-quarter revenue between $1.745 billion and $1.775 billion, with an adjusted EBITDA margin target of 84%. Adjusted EBITDA excludes interest, taxes, and certain other items. Free cash flow came in at $1.31 billion for the quarter. AppLovin also said it repurchased and withheld 0.8 million shares at a total cost of $481.7 million. (SEC)
With AI tools reshaping ad buying, traders are left eyeing the resilience of ad demand—especially for app installs and gaming marketing. But the real question on the tape cuts deeper: how much of this growth is genuine, and how much just came from pricing power that could slip if budgets get squeezed?
Heavy buybacks and strong margins look like a safety net to some investors when things get rocky. But for others, the stock still acts like a momentum play—quick to swing on whatever headline drops.
The main risk isn’t showing up in the income statement. AppLovin is under scrutiny from the U.S. Securities and Exchange Commission over its data-collection practices, according to Bloomberg News. Still, Reuters says the regulator hasn’t alleged any misconduct by the company or its executives. (Reuters)
Shares could get rattled once more if there’s a new disclosure from that review—or if another short attack lands.
Macro data sets up the next hurdle. The Bureau of Economic Analysis drops its Personal Income and Outlays report, featuring the PCE price index—the Fed’s go-to inflation measure—on Feb. 20 at 8:30 a.m. ET. This readout has the potential to shift rate-cut expectations and risk appetite, particularly for growth names like AppLovin. (Bea)
