AppLovin shares rise 7.70% after-hours as analysts defend AI competition risks and reject short-seller claims.

AppLovin (NASDAQ: APP) surged 7.70% in after-hours trading, driven by a mix of bullish analyst ratings and investor optimism amid recent volatility. The rebound followed heightened concerns over AI-driven competition from Google’s Project Genie and startup CloudX, which had earlier triggered a sharp sell-off. However, analysts at Piper Sandler, Benchmark, and Wedbush reiterated strong confidence in AppLovin’s competitive moats, arguing that AI tools like Genie and CloudX pose no immediate threat to its data-driven ad-tech platform. Positive sentiment was further bolstered by AppLovin’s robust fundamentals, including revenue and margin expansion, and a stock price trading significantly below analyst price targets. While short-seller allegations and broader software sector jitters had weighed on the stock, the recent analyst defenses and undervaluation created a buying opportunity, catalyzing the post-market rally.