Applovin-AppLovin Corporation (APP) Faces Investor Scrutiny After Losing Over $13.7 Billion Of Shareholder Value After Fuzzy Panda Research and Culper Research Take Aim - Hagens Berman

Core Viewpoint - AppLovin Corporation's stock price dropped significantly by $46.06 (-12%) on February 26, 2025, following allegations from short seller research firms regarding the company's AI ad technology, AXON 2.0, which has been a key driver of its revenue growth and ad performance [1][3]. Company Overview - AppLovin is a software-based platform that assists advertisers in enhancing marketing and monetization of their content [1]. - The company has promoted AXON 2.0 as its fastest-growing product, claiming it significantly boosts ad performance and installs [2]. Investigation and Allegations - Hagens Berman is investigating potential misconduct by AppLovin, focusing on whether the company misled investors about AXON 2.0's capabilities and its role in revenue growth [2][5]. - Reports from Fuzzy Panda Research and Culper Research raised concerns about AppLovin's representation of AXON 2.0, suggesting it may be a smokescreen for other revenue drivers [3][4]. Financial Impact - The negative reports led to a loss of over$ 13.7 billion in shareholder value on February 26, 2025 [4]. Specific Findings - Fuzzy Panda's report accused AppLovin of ad fraud and illegal practices, predicting potential removal from app stores by Apple and Google [4]. - Culper Research concluded that AXON 2.0 is primarily a promotional tool rather than a genuine AI-driven product, with claims of exploiting app permissions for profit [4][6]. Whistleblower Information - Whistleblowers with non-public information about AppLovin are encouraged to assist in the investigation, with potential rewards from the SEC for original information leading to successful recovery [7].