"AppLovin stock is up 85% in 2025. However, the stock fell 14% on Monday and shares fell 3% in premarket trading on Tuesday before reversing course - ending the day up 7.6%. The recovery - 6.6% of ApplLovin's stock is sold short - may have been due to reports from Citigroup and Oppenheimer which reiterated their buy recommendations and suggested the market overreacted to the investigation, noted MarketBeat."
"But short sellers have issued reports raising questions about how the mobile advertising company delivers its services. Those reports may have prompted a Securities and Exchange Commission investigation of AppLovin's data-collection practices, according to . The company's rapid and highly profitable growth make a compelling case for AppLovin bulls. However, if the SEC investigation results in changes to the company's business model, the company's growth could slow - rewarding the short sellers with a drop in the company's stock."
AppLovin's stock rose about 85% in 2025 but recently plunged 14% before partially rebounding to finish up 7.6% after volatile trading. Roughly 6.6% of the float is sold short, and analysts at Citigroup and Oppenheimer reiterated buy recommendations, suggesting an overreaction to scrutiny. Short-seller reports raised questions about how AppLovin delivers services and may have prompted a Securities and Exchange Commission inquiry into data-collection practices. Rapid, profitable growth underpins bullish sentiment, but regulatory changes could slow the business. AppLovin denies the short-sellers' claims and says it engages with regulators and will disclose material developments.
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