AppLovin (APP) shares were falling past 12% in early trading Wednesday after short-seller Fuzzy Panda Research released a report with allegations including advertising fraud.
Fuzzy Panda said that AppLovin uses a black-box algorithm known as Axon 2.0 "that serves as the 'matchmaker' between advertisers and publishers."
"Our research discovered that Axon 2.0 is the nexus of a House of Cards built upon tactics that formers and experts refer to as 'Ad Fraud,'" Fuzzy Panda said, adding that "we've been told they are stealing data from Meta in their e-commerce push."
AppLovin didn't immediately respond to a request for comment by MT Newswires.
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