Short seller report sparks stock plunge for AppLovin due to alleged violations and growth setbacks

From Stocktwits: 2025-03-27 22:44:00

AppLovin Corp. (APP) faced its worst session ever as a short seller alleged questionable practices, but a sell-side analyst defended the e-commerce company. Muddy Waters claimed AppLovin could be de-platformed due to user ID collection violations. The short seller also noted a high e-commerce client churn rate and potential growth plan setbacks. Despite the negative reports, Wedbush analyst Alec Bonello found that e-commerce customers were mostly new to the brand. Oppenheimer analysts remain bullish on AppLovin’s e-commerce growth, while retail sentiment on Stocktwits turned bearish. The stock closed 20.12% lower at $261.70.



Read more at Stocktwits: AppLovin Analyst Stands Ground As Fresh Short Report Sparks Stock Plunge: Retail Smells Something Fishy