Last year, the mobile app advertising platform AppLovin enjoyed a meteoric rise, catching the eyes of advertisers and analysts alike. Lately, though, it’s also caught the attention of critics—including, namely, a quartet of short-sellers who have claimed the company’s success is built on sand. In March, Muddy Waters issued a report that claimed, among other things, that the mobile gaming ads platform appears to be “impermissibly extracting” user data, violating the terms and services of ad giants like Apple and Meta. Muddy Waters joined a pile-on of short-seller investigations from other firms including Culper Research, The Bear Cave, and Fuzzy Panda. It’s a bout of bad press for a company that had recently become something of a Wall Street darling. At one point last year, AppLovin’s valuation was up as much as 550%; the company reportedly even submitted a last-minute bid for TikTok. AppLovin has repeatedly denied the short-sellers’ claims, and in a press release in late March, it announced that it had hired a law firm to “conduct an independent review and investigation into recent short report activity.” When asked for additional comments, AppLovin spokesperson Joshua Grandy pointed Marketing Brew to blog posts the company had recently published. Despite the drama, AppLovin was still considered a “buy” among most analysts in late March, Bloomberg reported, meaning they still considered the company to be a good investment. “We are fully committed to defending the company, its operations, and its reputation from those seeking to manipulate the market through false narratives,” Adam Foroughi, co-founder and CEO of AppLovin, said in the March press release. “We will take all necessary steps to ensure the facts are known and to protect our employees, stockholders, and partners.” Read more here.—RB |