AppLovin Shares Slump Thursday After Muddy Waters Issues Short Report

Important legal information about the email you will be sending. By using this service, you agree to input your real email address and only send it to people you know. It is a violation of law in some jurisdictions to falsely identify yourself in an email. All information you provide will be used by Fidelity solely for the purpose of sending the email on your behalf. The subject line of the email you send will be "Fidelity.com: "

AppLovin Shares Slump Thursday After Muddy Waters Issues Short Report

, MT Newswires - 7:41 AM ET 3/28/2025 default

07:41 AM EDT, 03/28/2025 (MT Newswires) -- AppLovin ( APP ) shares closed 20% lower on Thursday after short-seller Muddy Waters alleged that the company's e-commerce conversion practices represented potential violations of platform terms of service.

About 52% of AppLovin ( APP ) e-commerce conversions come from retargeting, with only 25%-35% deemed incremental, according to a report issued by Muddy Waters on Thursday.

The short-seller alleged that AppLovin ( APP ) is collecting and structuring user IDs from key platform partners, which it said "appears to be" a violation of terms of service.

"APP's advertising clients are likely sensitive to actual incrementality, which should frustrate APP's growth plans," Muddy Waters said.

AppLovin ( APP ) did not immediately respond to an MT Newswires request to comment.

AppLovin ( APP ) shares were more than 7% higher in premarket trading on Friday.

MT Newswires does not provide investment advice. Unauthorized reproduction is strictly prohibited.