On Thursday, $AppLovin Corporation(APP)$ saw a sharp 20% drop in the U.S. stock market, marking its largest single-day decline.
This came after Muddy Waters released a short-selling report targeting the company. This was at least the third short report released against AppLovin by short-sellers in the past month.
In February, Fuzzy Panda and Culper Research both issued short reports on the company, which provides marketing services for app developers, causing its stock price to drop. Just a few days before these reports were released, The Bear Cave also issued a cautious assessment of AppLovin's stock.
AppLovin was once one of the best-performing tech stocks of 2024, with its stock price soaring over 700% fueled by the AI boom. In November, the company’s stock was added to the Nasdaq 100 Index, further driving up its stock price, and by the end of the year, its market value had exceeded $110 billion.
Muddy Waters' report accused AppLovin of data theft and violating platform service terms. Meanwhile, the reports from Fuzzy Panda, Culper, and The Bear Cave previously claimed that AppLovin exaggerated the advantages of its AI platform and artificially boosted revenue by forcing users to install apps.
In response to the reports released in February, the company stated that these reports were filled with "inaccurate information and false assertions."
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