AppLovin Corporation (APP) saw its stock price plummet by 8.63% in pre-market trading on Monday, as AI and tech stocks faced a widespread sell-off. The significant drop in AppLovin's share price is part of a larger trend affecting various sectors, particularly AI-related companies, amidst growing concerns over upcoming tariffs and fears of a global economic slowdown.
The sell-off appears to have been triggered by U.S. President Donald Trump's comments about implementing sweeping tariffs that would target all countries. This announcement has fueled investor anxiety, leading to a flight from riskier assets, especially in the tech and growth sectors. AppLovin, known for its presence in the mobile app and gaming industry, was among the most affected in the AI app category, with other AI stocks like BigBear.ai, SoundHound AI, and Palantir also experiencing significant declines.
The broader market sentiment has turned cautious, affecting not only AI stocks but also other tech-related sectors. Mega-cap growth companies, including Tesla, Nvidia, and Meta, saw declines ranging from 1% to 4% in overnight trading. Additionally, space stocks, nuclear stocks, and cryptocurrency-related shares experienced notable drops, indicating a widespread risk-off attitude among investors as they brace for potential economic headwinds stemming from the proposed tariff policies.
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