Why AppLovin Corp. (APP) Went Down On Monday?

We recently published a list of Tech Firms Dominate Monday’s 10 Worst Performers. In this article, we are going to take a look at where AppLovin Corp. (NASDAQ:APP) stands against other tech firms that dominate Monday’s worst performers.

Wall Street’s main indices kicked off the trading week in the green territory, albeit with minimal gains, as investors stayed on the sidelines while continuing to digest President Donald Trump’s temporary tax reprieve on technology companies.

The S&P 500 recorded the highest gain, up 0.79 percent, while the Dow Jones came second at 0.78 percent. The tech-heavy Nasdaq was also up by 0.64 percent.

Meanwhile, 10 companies, predominantly in the technology sector, bucked a broader market optimism, booking modest declines during the session. In this article, let us explore Monday’s 10 worst performers and the reasons behind their gains.

To come up with the list, we only considered the stocks with $2 billion market capitalization and $5 million trading volume.

AppLovin Corp. (NASDAQ:APP)

AppLovin Corp. extended its losing streak for a third straight day on Monday, shedding 5.55 percent to finish at $236.07 each amid the looming deadline to lead plaintiff for a class action lawsuit against the company.

On Monday, several shareholder law firms reminded APP shareholders who lost money between May 10, 2023, and February 25, 2025, about the looming deadline to lead as plaintiff for the lawsuit alleging the company of reporting dishonest advertising practices.

The complaint alleged that throughout the class period, APP provided materially false and misleading statements about its business, operations, and prospects concerning financial growth and stability.

The complaint was based on a short seller report on February 26 claiming that APP was reverse engineering and exploiting advertising data from Meta Platforms.

The report further alleged that APP was utilizing manipulative practices to artificially inflate their own ad click-through and app download rates, such as by having ads click on themselves or utilizing design gimmicks to trigger forced shadow downloads, erroneously inflating installation numbers and, in turn, its profit figures.

APP, however, reassured investors of best practices, saying that it hired a law firm to investigate the allegations.

Overall, APP ranks 2nd on our list of tech firms that dominate Monday’s worst performers. While we acknowledge the potential of APP as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than APP but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock.

READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.

Disclosure: None. This article is originally published at Insider Monkey.