AppLovin Corporation's stock experienced a significant rebound on Monday, climbing 13.7% to $462.54. The rally followed news that financial publisher CapitalWalk retracted portions of a recent report that had alleged connections to money laundering, alleviating some investor concerns that had pressured the shares.
Analyst Backs Stock After Selloff
James Heaney of Jefferies reiterated his Buy rating and $860 price target on the mobile technology platform. He characterized the recent stock decline as "a great buying opportunity," suggesting that market fears about competition and advertising network stability are exaggerated. Heaney highlighted the stock's valuation at approximately 15 times his estimated fiscal 2027 EBITDA.
According to Barron's, CapitalWatch issued a correction and apology to a major shareholder, acknowledging that certain descriptions in its initial article "were inaccurate and failed to meet our publication standards." However, the outlet indicated it continues to examine AppLovin's financial structure and plans further coverage on data-security risks and advertising return metrics.
Earnings Catalyst Ahead
Investor focus now shifts to the company's upcoming financial results. AppLovin is scheduled to report its fourth-quarter and full-year 2025 earnings after the market closes on Wednesday, February 11. A webcast with CEO Adam Foroughi and CFO Matthew Stumpf will follow at 5:00 p.m. ET.
The stock has been notably volatile this year, reflecting the broader turbulence in the software sector as investors assess the impact of rapid AI innovation on business models and valuations. While Monday's rally provided relief, traders remain cautious ahead of the earnings report, watching for management's commentary on growth prospects and any address of the recent controversy.
