BUZZ-AppLovin plunges after two short sellers disclose short positions

Shares of marketing platform AppLovin APP.O fall 16% to $317 premarket

Short seller Fuzzy Panda Research says it is short on APP, alleging the company steals data from Meta META.O

"We believe these so-called dark ad practices explain the truth behind how AppLovin seems to have achieved its great growth", Fuzzy Panda Research says

Another short seller, Culper Research also says it is short on co, alleging the company exploits "app permissions that enable advertisements themselves to force-feed silent, backdoor app installations directly onto users' phones"

AppLovin did not immediately respond to a Reuters request for comment

Earlier this month, APP had forecast Q1 revenue between $1.36 billion and $1.39 billion, surpassing analysts' estimates - which had sent its shares to an all-time high

Co had reported Q4 advertising rev of $999 mln, rising 73% YoY

Up to last close, APP shares are up more than 16% YTD after surging more than 700% in 2024