AppLovin (APP) saw a recovery in its stock price on Friday morning after a significant drop of 20% during Thursday’s trading session. This rebound follows the company’s announcement that it has engaged an attorney to investigate recent reports from short sellers.
On Friday, AppLovin revealed that it has hired Alex Spiro to undertake an “independent review and investigation” concerning the allegations made by short sellers. Spiro, known for representing high-profile figures such as Tesla CEO Elon Musk, New York City Mayor Eric Adams, and musician Jay-Z, will lead this inquiry.
In a statement, AppLovin CEO Adam Foroughi emphasized the company’s commitment to protecting its operations and reputation against those attempting to distort the market through misleading information. By Friday, AppLovin’s shares had risen approximately 4%. Despite this increase, the stock has experienced a significant decline from its record closing price of $510.13 on February 14, even though it has surged nearly 300% over the past year.
AppLovin has recently faced scrutiny from short sellers, with three reports targeting the company in the last month. The most recent report, released by Muddy Waters on Thursday, described AppLovin’s business practices as “scammy” and warned of potential consequences from its business partners. Previous reports from Culper Research and Fuzzy Panda Research also accused AppLovin of engaging in various fraudulent or deceptive activities.
