Applovin(APP) CNBC·2025-03-28 17:36Core Viewpoint - AppLovin's CEO Adam Foroughi responded to short-selling allegations from Muddy Waters Research, emphasizing the need for investors to critically evaluate the claims made against the company's AI-driven advertising technology [1][2]. Group 1: Allegations and Responses - Muddy Waters Research accused AppLovin of violating app stores' terms of service by improperly extracting proprietary IDs from major platforms like Meta, Snap, TikTok, Reddit, and Google [2]. - Foroughi argued that the complexity of AppLovin's technology leads to misunderstandings, suggesting that critics simplify the narrative to claim policy violations to explain the company's success [2][3]. - AppLovin's stock experienced a significant drop of 20% before rebounding by nearly 4% the following day [2]. Group 2: Legal and Market Reactions - In response to the short-selling reports, AppLovin engaged Alex Spiro from Quinn Emanuel for an independent review of the allegations, aiming to address misinformation tactics used by short sellers [3]. - Analysts at Loop Capital maintained a buy rating for AppLovin, setting a price target of $650, indicating confidence in the company's performance despite the negative reports [3][4]. - The company believes that accusations regarding faulty conversions and fraud can be easily disproven through discussions with performance marketers and measurement companies [4].