AppLovin Stock Surges Despite $423.9 Million Trading Volume Decline

On March 28, 2025, Applovin (APP) saw a trading volume of $423.9 million, marking a 28.27% decrease from the previous day. Despite this, the stock price rose by 4.08%.

AppLovin Corporation has taken a significant step to address recent short-selling allegations by retaining Alex Spiro, a partner and Co-Chair of the Investigations, Government Enforcement White Collar Defense Practice at Quinn Emanuel Urquhart & Sullivan. This move comes after the company's stock experienced a sharp decline following a report by Muddy Waters Research, which accused AppLovin of violating app stores' terms of service and inflating ad performance numbers.

In response to the allegations, AppLovin CEO Adam Foroughi urged investors to "dig deeper" into the claims, asserting that the company's AI-powered ad tactics could be easily disproven by artificial intelligence models. Foroughi acknowledged the complexity of the company's technology and the potential for misinformation to stir fear and doubt among investors.

AppLovin has faced criticism from multiple short-selling firms, including Fuzzy Panda Research and Culper Research, which have published reports questioning the company's technology and business practices. Despite these challenges, analysts at Loop Capital reiterated their buy rating on AppLovin, expressing confidence in the platform's performance and revenue momentum.