Mobile app marketing firm AppLovin saw its stock drop 12% Wednesday after short sellers Fuzzy Panda and Culper Research accused it of fraud.
They claim AppLovin exaggerates its AI-powered AXON software’s capabilities, reverse-engineers Meta’s data and exploits app store permissions for silent installations.
CEO Adam Foroughi denied the allegations as “false and misleading.”
Meanwhile, AppLovin reported a strong Q4, with ad revenue up 73% to nearly $1 billion. Its stock surged over 700% in 2024.
However, another short seller, Bear Cave, warned AppLovin’s $100 billion market cap is excessive for a company making under $5 billion annually.