Wall Street vs. Short-Sellers: Is AppLovin a Buy, Sell, or Hold?
Artificial intelligence-powered ad-tech company AppLovin (NASDAQ: APP) had a dream year in 2024. Its stock exploded roughly 713%, which was exceptional performance even for a stock in the popular AI trade.However, 2025 has been a different story. The stock is down about 6% year to date, and it plunged in mid-February after several short reports came out. (Keep in mind that if someone is short a stock, they make money when it falls.) These reports launched various allegations against AppLovin, from ad fraud to "notorious spyware." Management and several Wall Street analysts have rebutted the reports, setting the stage for a battle between the short-sellers and Wall Street. Is AppLovin a buy, sell, or hold after these recent events?Three different short reports emerged within a week. The first came from a popular newsletter called The Bear Cave, which publishes monthly investigations into publicly traded companies it believes are engaging in questionable practices, or into whether a stock is simply undeserving of its valuation.Continue reading
Artificial intelligence-powered ad-tech company AppLovin (NASDAQ: APP) had a dream year in 2024. Its stock exploded roughly 713%, which was exceptional performance even for a stock in the popular AI trade.
However, 2025 has been a different story. The stock is down about 6% year to date, and it plunged in mid-February after several short reports came out. (Keep in mind that if someone is short a stock, they make money when it falls.) These reports launched various allegations against AppLovin, from ad fraud to "notorious spyware." Management and several Wall Street analysts have rebutted the reports, setting the stage for a battle between the short-sellers and Wall Street. Is AppLovin a buy, sell, or hold after these recent events?
Three different short reports emerged within a week. The first came from a popular newsletter called The Bear Cave, which publishes monthly investigations into publicly traded companies it believes are engaging in questionable practices, or into whether a stock is simply undeserving of its valuation.
