Key Takeaways
- AppLovin shares plunged Thursday after short seller Muddy Waters alleged the adtech company engaged in “scammy” practices.
- The report comes just weeks after other short sellers including Fuzzy Panda and Culper Research accused the company of fraudulent and deceptive practices.
- Thursday’s losses brought shares into negative territory for the year. Still, they’ve nearly quadrupled in value over the last 12 months on anticipation of AI-driven growth.
AppLovin (APP) shares plummeted Thursday after short seller Carson Block’s Muddy Waters said it was taking a short position, alleging the adtech company engaged in “scammy” practices.
Shares lost about one-fifth of their value Thursday to close at $261.70, bringing them into negative territory for the year. Still, the stock has nearly quadrupled in value over the last 12 months on expectations it could benefit from growing demand for AI-powered advertising tools as the company reported strong revenue gains.
Muddy Waters accused AppLovin of misappropriating data and violating key partner platforms’ terms of service, among other things, and suggested backlash to its practices could hold back AppLovin’s growth plans and lead its services to be blocked by partners and boycotted by clients.
AppLovin did not immediately respond to a request for comment on the report.
The report from Muddy Waters comes just weeks after other short sellers including Fuzzy Panda and Culper Research issued their own reports against AppLovin, accusing the company of engaging in fraudulent and deceptive practices.
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