Why Did Applovin Stock Soar 7.55% After 20% Plunge?

On March 28, 2025, Applovin's stock surged by 7.55% in pre-market trading.

Applovin's stock experienced a significant decline of over 20% on March 27, 2025, following a critical report from short-selling firm Muddy Waters. The report raised concerns about the company's ad technology, leading to the steepest one-day drop in the company's history since its IPO in 2021. This event marked the third instance of a short-selling firm targeting Applovin, adding to the market's skepticism about the company's digital advertising practices.

Despite the recent downturn, some analysts remain optimistic about Applovin's prospects. Citi and Wells Fargo have both reaffirmed their confidence in the company, with Citi maintaining a $600 price target. FBN Securities also initiated coverage on Applovin with an "Outperform" rating, suggesting that the company's fundamentals remain strong despite the short-term volatility.