New York, Feb 13, 2026, 11:41 a.m. EST — Regular session
- AppLovin shares up about 1.5% in late morning trade, a day after a 20% slide
- Q4 revenue rose 66%; company guided Q1 revenue of $1.745 billion to $1.775 billion
- Analysts cut price targets after the results, even as several kept bullish ratings
AppLovin (APP.O) shares rose about 1.5% to $372.55 by late morning in New York on Friday, a day after the stock closed down 20% at $366.91. The shares swung between $359.18 and $382.16 in the session. (Applovin)
The snapback matters because it follows a violent reset in a high-expectations stock, with investors trying to decide whether Thursday’s selloff was a clean break or just the first leg. A lot of the broader debate is about what “AI winners” should cost when growth stocks are being repriced, one by one.
Late Wednesday, AppLovin reported fourth-quarter revenue of $1.658 billion, up 66% from a year earlier, and adjusted EBITDA of $1.399 billion. (Adjusted EBITDA is a company-defined profit measure that strips out items such as interest, taxes, and depreciation; it is not a standard accounting metric.) It forecast first-quarter revenue of $1.745 billion to $1.775 billion and adjusted EBITDA of $1.465 billion to $1.495 billion, implying an 84% margin, and said free cash flow was $1.31 billion in the quarter.
Even so, targets came down across the Street. Jefferies cut its price target to $700 from $860 while keeping a buy rating, calling the quarter “impressive,” according to The Fly. Goldman Sachs lowered its target to $585 from $710 and maintained a neutral rating, MT Newswires reported. (TipRanks)
On the earnings call, CEO Adam Foroughi leaned into the company’s pitch that its ad system can follow shifting user behavior as formats change, saying, “We are not tied to any specific genre or format.” CFO Matt Stumpf argued the business still sits in a rare corner of the market, saying, “The combination of growth, profitability, Free Cash Flow, and capital returns we’re delivering is extraordinarily rare.” (Investing)
Traders are also watching whether AppLovin’s push beyond mobile gaming ads — including its e-commerce effort — can keep adding new dollars without dragging margins. The company’s first-quarter outlook suggests only mid-single-digit sequential growth after the seasonally strong fourth quarter, which is where the stock has started to feel less forgiving.
But the downside case is still plain: ad spending can cool fast, and ad-tech is crowded. If bigger platforms roll out newer AI tools that change pricing or performance, or if risk appetite fades again, APP can re-rate lower before it finds a floor.
Friday’s modest lift in APP came alongside steadier U.S. stocks after a softer inflation reading eased some rate jitters, helping a few of Thursday’s hardest-hit growth names claw back losses. (AP News)
Next up, investors are likely to look for follow-through in first-quarter results; Zacks’ earnings calendar lists May 6 as the expected next earnings release date. (Zacks)
