Applovin Stock Plunges 7.5% Amid Lawsuit, Short Seller Scrutiny

On April 3, 2025, Applovin's stock experienced a significant drop of 7.5% in pre-market trading, reflecting a challenging period for the company.

Over the past quarter, Applovin has seen a 13% decline in its stock price, which has notably impacted shareholder returns. This downturn has been attributed to various factors, including a class action lawsuit that has added to the company's challenges.

Despite the recent setbacks, Applovin has shown resilience in the face of adversity. The company has been actively exploring new opportunities, including a potential bid for TikTok. This move, if successful, could provide a significant boost to Applovin's growth prospects and help mitigate the impact of the recent stock decline.

However, the company has also faced criticism from short sellers, who have questioned the legitimacy of its AI breakthroughs. This scrutiny has added to the pressure on Applovin's stock price, but the company remains focused on delivering value to its shareholders and investors.