Applovin(APP) CNBC·2025-03-07 20:19Core Viewpoint - The short-seller firm Fuzzy Panda Research has intensified its campaign against AppLovin, alleging serious violations of app store policies and fraudulent practices, while urging the S&P Index Committee to exclude AppLovin from the S&P 500 index [1][2][9]. Company Performance - AppLovin's share price increased over 700% in 2024, raising its market capitalization to over 110 billion, making it a strong candidate for inclusion in the S&P 500, which has a median market cap of approximately 36 billion [3]. - Following its exclusion from the S&P 500 in December, AppLovin's stock price fell by 15% [3]. - The company reported an earnings beat in February, resulting in a 34% stock price increase over two days, but has since seen a nearly 50% decline, significantly underperforming the broader market [7]. Short-Seller Allegations - Fuzzy Panda's allegations include claims of AppLovin engaging in fraudulent advertising tactics, such as data theft from Meta and violations of child protection laws [9][10]. - The firm claims that AppLovin's revenue growth is based on unethical practices, including data theft and revenue fraud [10]. - Fuzzy Panda's research involved interviews with former employees and industry experts, asserting that AppLovin's practices could lead to a permanent ban from major app store platforms [11]. Market Reactions - AppLovin's CEO Adam Foroughi has publicly refuted the allegations, describing them as inaccurate and misleading, and emphasized the sophistication of their AI-driven advertising technology [7][8]. - Analysts from BTIG and Piper have expressed support for AppLovin, maintaining buy ratings and dismissing the short-seller claims as lacking merit [8]. Upcoming Events - The next quarterly rebalancing of the S&P 500 is anticipated later in March, which could impact AppLovin's stock performance depending on the committee's decisions [5].