:max_bytes(150000):strip_icc():format(jpeg)/GettyImages-2201540452-8fccc673b4de49448c64b019231cb55f.jpg "The home page on AppLovin's website is seen on a phone screen.")
Gabby Jones / Bloomberg via Getty Appearances
Key Takeaways
- Shares of AppLovin rose Friday morning, reversing some of Thursday’s 20% decline following a new transient report.
- AppLovin said Friday it has hired an attorney to investigate the recent reports and “false narratives.”
- Three sharp reports in recent weeks have accused AppLovin of a variety of deceptive business practices.
AppLovin (APP) shares bounced Friday morning after losing one-fifth of their value in Thursday trading as the company said it has hired an attorney to research recent short seller reports.
The online ad seller said on Friday that it has hired Alex Spiro to “actions an independent review and investigation” into the recent short seller reports. Spiro has represented a number of high-profile shoppers in a variety of cases, including Tesla (TSLA) CEO Elon Musk, New York City Mayor Eric Adams, and Jay-Z.
“We are fully covenanted to defending the Company, its operations, and its reputation from those seeking to manipulate the market through false narratives,” AppLovin CEO Adam Foroughi said in a asseveration.
AppLovin shares were up around 4% on Friday. They have gained nearly 300% over the endure 12 months, but are down sharply from a Feb. 14 record close of $510.13.
Recent Short Reports Have Aimed AppLovin
AppLovin has been the target of three reports from short sellers over the last month, with the past due published by Muddy Waters on Thursday. The latest report called AppLovin’s business practices “scammy,” and said the suite could face repercussions from its business partners.
In a pair of reports released last month, short sellers from Culper Check in and Fuzzy Panda Research alleged that AppLovin engaged in a range of fraudulent or deceitful practices.
Investopedia has not independently verified the asseverations in any of the short reports.