AppLovin Drops 19.9% as Investors Flee High-Priced Growth Stocks
As seen on the 24/7 Wall St. homepage on August 6, 2026.
Owning expensive growth cost you today: AppLovin closed down 19.9%, with Axon and Duolingo double-digit and near double-digit losers alongside it. The money rotated into AI hardware, where Astera Labs and Fabrinet both finished higher.
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AppLovin (APP) led a steep selloff in richly valued growth names on August 6, closing down 19.9% to $334.86. Axon Enterprise (AXON) fell nearly 13% to $530.32, while Duolingo (DUOL) shed just under 10% to $121.84. Dutch Bros (BROS) was the session's second-largest loser, dropping 18.1% to $53.79, and fuboTV fell 13.5% to $9.22.
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The rotation out of expensive growth was matched by clear buying interest elsewhere in the market. AI hardware-linked names drew the money that left growth: Astera Labs (ALAB) gained 6.9% to close at $340.48, and Fabrinet (FN) rose 5.7% to $552. Clover Health and SoundHound AI also finished higher, up 12.7% and 9.3% respectively, rounding out a session defined by sharp sector divergence rather than broad market weakness.