Shares of AppLovin Corporation continued their upward trajectory on Tuesday, February 10, 2026, adding approximately 3% in morning trading to reach $474.31. This advance builds on a substantial rally from the prior session, where the stock surged 13.2% to close at $460.38. The two-day rebound follows a significant development involving a financial publication's retraction of certain allegations, which had previously contributed to investor unease and stock price volatility.
Retraction Fuels Recovery Amid Short-Seller Pressure
The catalyst for the recovery stems from CapitalWatch, a financial commentary outlet, formally retracting portions of its report concerning AppLovin shareholder Tang Hao. The publication stated an internal review found some claims did not meet its editorial standards. Notably, CapitalWatch clarified it holds no financial interest in AppLovin and indicated plans to issue a new report on the company. This move comes after AppLovin had pushed back forcefully, including issuing a cease-and-desist letter demanding a retraction. The episode highlights the intense scrutiny and pressure from short-seller research that has whipsawed the stock's price, particularly as the company approaches its quarterly earnings report.
Despite the recent gains, AppLovin's share price remains approximately 37% below its peak from December of the previous year, underscoring the severity of the recent sell-off. However, the stock is still up roughly 20% on a year-over-year basis. Trading on Tuesday saw the stock move between $462.13 and $479.67, reflecting ongoing volatility as traders assess whether this rebound represents a sustainable recovery or merely a temporary respite in a turbulent market tape.
Analyst Commentary and the "Buying Opportunity" Thesis
Adding bullish sentiment, analysts at Jefferies weighed in, characterizing recent investor fears as "overblown." In a research note, analyst James Heaney reiterated a Buy rating on AppLovin and maintained a price target of $860. Heaney suggested the stock's 39% decline year-to-date has created a "great buying opportunity." The note specifically addressed concerns related to competitive pressures from CloudX, Meta's Audience Network, and Google's Genie project, downplaying their near-term impact. Jefferies anticipates AppLovin will deliver a significant fourth-quarter revenue beat when it reports results.
The company is scheduled to release its Q4 and full-year 2025 financial results after the U.S. market closes on Wednesday, February 11. A webcast will follow at 5:00 p.m. Eastern Time, featuring commentary from Chief Executive Officer Adam Foroughi and Chief Financial Officer Matthew Stumpf. The earnings report and subsequent guidance are now the paramount focus for investors, who will be listening intently for management's insights on advertising demand from key verticals like gaming and e-commerce, as well as any address of ongoing questions regarding compliance and data practices.
High Stakes for the Upcoming Earnings Report
The sharp bounce over the past two days, while welcome for shareholders, leaves minimal room for disappointment. Market participants will be highly sensitive to any cautious notes in the company's outlook. Furthermore, the potential for new allegations to gain traction remains a risk that could swiftly reverse recent gains, pulling the stock back into the kind of volatile downdrafts that characterized its performance in January. The upcoming report serves as a critical test for management's credibility and the underlying business resilience.
AppLovin, which was added to the S&P 500 index in late 2025, operates in the competitive mobile technology and advertising sector. The stock's performance is often seen as a barometer for digital advertising health, particularly within the app ecosystem. The recent volatility and subsequent recovery underscore the market's ongoing struggle to price in competitive threats, regulatory scrutiny, and growth prospects accurately. The outcome of the February 11 earnings call will likely set the tone for the stock's trajectory in the coming quarter, determining if this rebound marks a genuine inflection point or merely a pause in a broader corrective phase.
