AppLovin falls after Muddy Waters discloses short position

Shares of marketing platform AppLovin APP.O fall 11.6% to $289.72 in afternoon trading

Muddy Waters Research has taken short position on AppLovin

Muddy Waters says web traffic analysis leads it to estimate that ~52% of APP's e-commerce conversions are retargeting and incrementality is only ~25%-35%

APP did not immediately respond to a Reuters request for comment

Muddy Waters says code evidences that APP is collecting and structuring user IDs from its key platform partners, which appears to be a major violation of the platforms' terms of service

In February, two short sellers, Fuzzy Panda Research and Culper Research, disclosed short positions in AppLovin and alleged various concerns about co's business practices

Up to last close, APP down ~1% this year