AppLovin Stock Plummets 20% Following Muddy Waters' Allegations

The short-seller's report accuses the mobile marketing company of violating app store rules, over-reliance on retargeting, and facing significant client churn.

• AppLovin's stock fell 20% on March 27, 2025, marking its steepest decline on record, closing at $261.70.
• Muddy Waters Research alleges that AppLovin systematically violates app store policies by extracting proprietary user IDs from platforms like Meta, Snap, and TikTok.
• The report claims that 52% of AppLovin's e-commerce sales stem from retargeting, with only 25%-35% representing new business, raising concerns about growth sustainability.
• A 23% churn rate among AppLovin's e-commerce clients in Q1 2025 was highlighted, suggesting dissatisfaction with the platform's performance.
• CEO Adam Foroughi has strongly denied the allegations, attributing them to short-sellers aiming to profit from the company's stock decline.

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