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AppLovin Jumps After CapitalWatch Walkback as Jefferies Reaffirms Bullish Call

The correction eased a reputational overhang before Wednesday’s earnings.

Overview

  • Shares rose about 13% Monday to $460.38 after CapitalWatch apologized and retracted personal money-laundering allegations against major shareholder Hao Tang.
  • CapitalWatch said its broader concerns about AppLovin’s complex financial structure still warrant scrutiny even as it corrected the attribution.
  • Jefferies kept a Buy rating with an $860 price target, calling the roughly 40% year-to-date slide a buying opportunity and expecting a Q4 revenue beat on February 11.
  • Analyst views remain divided, with Wedbush cutting its target to $465 while maintaining Outperform and Needham upgrading to Buy with a $700 target and higher 2026 e-commerce estimates.
  • Debate continues over AI-driven competitive threats versus confidence in growth from e-commerce and Connected TV that bulls say can offset pressures.