AppLovin Corporation (APP) stock plummeted 19.57% in pre-market trading on Wednesday, as short sellers issued scathing reports alleging unethical business practices by the mobile app technology company.
Short sellers Fuzzy Panda Research and Culper Research both disclosed taking short positions on AppLovin, accusing the company of engaging in advertising fraud and exploiting consumer data in ways that violate app store policies.
Fuzzy Panda alleged that AppLovin's core algorithm Axon 2.0, used to match advertisers and publishers, is built upon tactics referred to as "Ad Fraud." The firm also claimed that AppLovin is "stealing" data from Meta (META) as part of its e-commerce push, and believes tech giants like Apple, Google, and Meta have a vested interest in stopping AppLovin's "dark ad practices."
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.