Key takeout
- Applovin shares fell sharply on Thursday, with short-seller Muddy Waters claiming that the Adtech company was engaged in “con artists” practices.
- The report comes weeks after other short sellers, such as Fazy Panda and Calper Research, denounced the company for fraudulent and deceptive practices.
- Thursday's losses brought stocks that year into negative territory. Still, they have almost quadrupled their value over the past 12 months, predicting AI-driven growth.
Applovin (APP) shares plummeted on Thursday, said short-seller Carson Block's muddy waters are taking short positions, claiming AdTech companies engaged in “fraud” practices.
The stock lost about a fifth of its value on Thursday, closing at $261.70, becoming the negative territory of the year. Still, stocks have almost quadrupled in value as companies benefit from growing demand for AI-powered advertising tools over the past 12 months, which means they benefit from strong revenue growth.
Muddy Waters accused Applovin of diverting data and violating the terms of service of key partner platforms, suggesting a backlash against its practices, hindering Applovin's growth plans, blocking it by partners, and clients may lead services that have been boycotted.
Applovin did not immediately respond to requests for comment on the report.
The report from Muddy Waters comes just weeks after other short sellers, such as Fuzzy Panda and Culper Research, issued their own reports against Applovin and accused them of engaging in fraudulent, deceptive practices.
