AppLovin shares tumble 13% as short sellers question its centerpiece AXON ad software
Briefly

AppLovin shares fell by 13% following allegations by short-seller Fuzzy Panda, which criticized the integrity of the company's AI-driven AXON advertising software. Fuzzy Panda claimed that the model relies on fraudulent advertising practices, including stealing data from Meta and exploiting consumer data against app store policies. Despite these allegations coming after a strong earnings report, where AppLovin reported a 73% increase in advertising revenue, the future impact of these claims on investor confidence remains uncertain. CEO Adam Foroughi plans to expand AXON into new sectors, but scrutiny from short sellers could hinder growth.
Shares of AppLovin tumbled 13% Wednesday as two short-seller reports cast doubt on the integrity of the company's AI-powered AXON advertising software.
Short seller Fuzzy Panda alleged that the AXON model was "the nexus of a House of Cards" built on fraudulent advertising tactics.
Read at www.cnbc.com
[
|
]