Why AppLovin Stock Crashed on Thursday
App-based advertising technology middleman AppLovin (NASDAQ: APP) certainly wasn't feeling any love from the market on Thursday. In fact, investors were outright hating it. Shares closed the day down 9%, peeling back from a recently reached record high.What gives? A short-seller's claim that the in-app advertising it facilitates isn't as user-friendly as it should be.Most of the blame for today's pessimism belongs to a blog entry posted at Substack, an online platform for publishers of digital newsletters. Edwin Dorsey, a short-seller who manages a Substack publication called The Bear Cave, said that AppLovin's rapid growth has been "fueled by low-quality revenue growth" from ads that don't give clickers what they expect. Continue reading
App-based advertising technology middleman AppLovin (NASDAQ: APP) certainly wasn't feeling any love from the market on Thursday. In fact, investors were outright hating it. Shares closed the day down 9%, peeling back from a recently reached record high.
What gives? A short-seller's claim that the in-app advertising it facilitates isn't as user-friendly as it should be.
Most of the blame for today's pessimism belongs to a blog entry posted at Substack, an online platform for publishers of digital newsletters. Edwin Dorsey, a short-seller who manages a Substack publication called The Bear Cave, said that AppLovin's rapid growth has been "fueled by low-quality revenue growth" from ads that don't give clickers what they expect.
