Digital Declaration shares Applovin (NASDAQ: App) 18.2 % decreased in March, according to data from S & P Global Market Intelligence.
Applovin had already had a rough February, when two were injured Short seller reports. Although the entire technology sector had a harsh march as well, Applovin had another particular bad month, as it was subjected to-I guessed-a third short report.
On March 27, the director of a short hedge fund called Muddy Waters published a short report against Applovin.
According to Muddy Waters, the new Applovin’s new digital advertising engine shares in a number of tactics that cannot be compensated in order to make digital ads revenues look better than it will be. Muddy Waters mainly concluded Applovin programs user identifiers and data from other social media platforms in order to find high -value goals, which Muddy Waters claim a violation of the application store rules. Then the hedge fund continued to accuse Applovin using “targeting” methods that enhance advertising sales for actual demand.
All in all, Muddy Waters believe that the new Applovin advertisers for e -commerce see only from 25 % to 35 % of “additional” requests on current social media ads, while the Applovin administration claimed that increased spending on the mobile phone game platform was 100 % more like.
Muddy Waters’s claims for Fuzzy Panda and Culper Research, which collaborated in a short report against the company in February. And such short sellers, Muddy Waters believes that Applovin drivers should be “conveyed” from major application stores, given that these accusations will violate the privacy policy of application stores.
In addition, the markets have been stuck by fears of tariff policies that come out of the White House. It turns out that these concerns are correct, as Trump’s tariff policies were revealed to be revealed much worse than they were in thinking, even through skeptics of the market. During the month, the entire technology sector, especially digital advertisers, decreased. Therefore, the addition of the additional short seller is added only to the shrinking mood of Applovin.
It should be noted that short sellers have a clear incentive for “muddy water” if they attract fear, uncertainty and doubt in their targeted companies. Moreover, stocks that have increased a lot in a short period of time may also be particularly good goals.
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