AppLovin Corp. (NASDAQ:APP) shares are trading lower, falling further below their moving averages to a fresh 52-week low, after a Unity spokesperson’s comments appeared to weigh on the stock. Here’s what you should know.
- AppLovin shares are approaching critical lows. What’s behind APP weakness?
AppLovin Sues Unity Over Alleged Data Misuse
AppLovin filed for a temporary restraining order against Unity Software Inc (NYSE:U) in California court this week. The filing accuses Unity’s Ad Quality software of improperly gathering data tied to AppLovin’s ads. That data reportedly includes details on creatives, users, devices, revenue and engagement, Digiday reported.
AppLovin further claims Unity fed that information into its own models to compete against AppLovin in mobile ad auctions. The company has not proven those claims in court.
AppLovin wants the court to block Unity from collecting what it calls its “Protected Data.” That includes pricing and auction information tied to AppLovin’s business. AppLovin is also asking Unity to halt the relevant data collection within five business days and rework its software within 30 days. Separately, AppLovin initiated a JAMS arbitration case. That filing alleges breach of contract, trade-secret misappropriation and violations of California’s unfair competition law.
Unity fired back through a spokesperson. The statement called AppLovin’s lawsuit “a classic case of a dominant incumbent resorting to litigation and intimidation” meant to address “increased competition and slowing growth.” Unity framed the dispute as targeting a small, free tool built to keep harmful ads out of games.
AppLovin’s Chart Shows a Stock in a Clear Downtrend
Beyond the legal dispute, AppLovin’s chart tells its own story. The stock had spent much of September struggling to hold its 20-day moving average. That support finally gave way this week, and the stock has faced heavy selling pressure since. Shares now trade below every major moving average and sit at a fresh 52-week low.
The stock has fallen 11.4% below its 20-day average of $314.58 and sits 39.2% under its 200-day average of $458.24. The 20-day average trading below the 50-day points to near-term weakness. A death cross from March, when the 50-day average dropped beneath the 200-day, continues to weigh on the stock’s broader trend. The next meaningful support level may sit near $220, an area where the stock found buyers during a bounce in late March 2025.
APP Shares Are Dropping
APP Price Action: AppLovin shares were down 2.84% at $282.18 at the time of publication on Thursday. The stock is trading at a new 52-week low, according to Benzinga Pro.
Image: Piotr Swat/Shutterstock
Login to comment