AppLovin Stock Recovers in 2025 After Hiring Top Attorney Amid Short Seller Claims
AppLovin shares surged after a sharp decline, as the company engages legal experts to probe recent short seller allegations, reinforcing investor confidence.
Highlights
- AppLovin stock climbed Friday morning, recovering from a 20% drop caused by recent short seller reports.
- The company has retained renowned attorney Alex Spiro to conduct a thorough investigation into these claims and counteract misleading narratives.
- Multiple short reports in recent weeks have accused AppLovin of questionable business practices, prompting legal scrutiny.
AppLovin (APP) shares bounced back Friday morning after a significant 20% loss on Thursday, following the announcement that the company has hired legal counsel to investigate allegations from short sellers.
The digital advertising firm disclosed that it appointed Alex Spiro, a prominent attorney known for representing high-profile clients such as Tesla CEO Elon Musk, NYC Mayor Eric Adams, and Jay-Z, to lead an independent review and investigation into the recent short seller reports.
“We are steadfast in protecting the company’s integrity, operations, and reputation against attempts to manipulate the market through false claims,” stated AppLovin CEO Adam Foroughi.
On Friday, AppLovin shares rose approximately 4%, reflecting renewed investor confidence. Despite a nearly 300% gain over the past year, the stock remains below its February 14 peak closing price of $510.13.
Short Seller Reports Spark Legal Action
In the past month, AppLovin has been targeted by three short seller reports, the latest released by Muddy Waters, which described the company's business practices as "scammy" and warned of potential fallout with business partners.
Earlier reports by Culper Research and Fuzzy Panda Research accused AppLovin of engaging in deceptive or fraudulent activities, intensifying scrutiny on the company.
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