AppLovin Shares Decline Despite Bullish Analyst Sentiment
AppLovin Corporation (APP) shares fell 6.3% to $568.76 on Friday, marking a stark contrast to the optimistic outlook from major Wall Street firms. Morgan Stanley raised its price target to $800 from $750, maintaining an Overweight rating, while Evercore ISI initiated coverage with an Outperform rating and an $835 target.
The drop occurred ahead of the Martin Luther King Jr. holiday weekend, with trading volume reaching 8.6 million shares. The company is set to report Q4 and full-year 2025 earnings on February 11. Meanwhile, the SEC is investigating AppLovin's data-collection practices following allegations from short-sellers regarding targeted ad delivery.
Director Maynard G. Webb Jr. received 28 restricted stock units on January 15, which vested immediately. Market analysts suggest 2026 will mirror 2025 in the internet sector, with a focus on companies leveraging GenAI or GPU-enabled technologies.
