Why Did Applovin Plunge 9.95% Amid Short Seller Attacks?

On April 30, 2025, Applovin's stock experienced a significant drop of 9.95% in pre-market trading, reflecting a notable decline in investor sentiment.

Analysts have recently downgraded their ratings for Applovin, following a barrage of short seller attacks and an investor lawsuit. This negative sentiment has put pressure on the stock, as investors with losses are encouraged to contact the firm before the May 5th deadline.

Despite the recent downturn, Applovin is expected to post earnings of $1.45 per share for the current quarter, representing a year-over-year change of +116.4%. This positive earnings outlook may provide some support for the stock in the coming weeks.

Applovin Corporation engages in building a software-based platform for mobile app developers to enhance the marketing and monetization of their apps. The company has shown strong growth in recent years, with earnings increasing by 67.03% per year over the past five years and revenue growing by 36.49% per year during the same period.