AppLovin stock tumbled on Monday, placing it at the bottom of the S&P 500, as industry data suggest that the software company's e-commerce advertising growth is slowing.

Although artificial intelligence stocks were under pressure Monday, many software stocks were trading in the green and near the top of the S&P 500. The one exception was AppLovin, the world's largest mobile-app ad platform.

AppLovin stock fell 10% to $454.40, making it one of the worst performing names in the S&P 500. The decline was in juxtaposition to Intuit's 7% advance, Salesforce's 5.5% gain, and Workday's 5.4% rise.

What set AppLovin apart from other software names was a Bank of America report based on third-party data that indicated AppLovin's e-commerce advertising footprint grew more slowing in June, adding about 750 new pixels versus about 950 pixels in May.

Some of the more bullish views on the stock have been based on AppLovin's expansion into e-commerce advertising. Raymond James in late June initiated coverage of AppLovin with a Buy rating and a $640 price target primarily based on the belief that ads can sustain strong growth.

Bank of America's report could ultimately signal bad news for that thesis, but the bank argued that "it's still too early to extrapolate the near-term trend" given that the data cover only the first to weeks that Applovin's platform has been broadly available. The bank has a Buy rating on AppLovin with a $705 price target.

AppLovin stock is set to close lower for a fifth consecutive trading session, and at last check it had lost $28.25 billion in market value since the closing bell on July 6, according to Dow Jones Market Data.

The stock has declined 32% this year as the market anticipates that AI will disrupt many software offerings. Nonetheless, shares are up 29% over the past 12 months.

Write to Kit Norton at kit.norton@barrons.com

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July 13, 2026 13:19 ET (17:19 GMT)

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