AppLovin (APP) Plunges 3.71% Amid National Security Concerns

On June 13, 2025, Applovin's stock experienced a 3.71% drop in pre-market trading.

Applovin has once again come under scrutiny from short sellers, with Culper Research issuing a report alleging that the advertising technology company poses national security risks due to its potential ties to China. The report claims that CEO Adam Foroughi has repeatedly denied any meaningful Chinese ownership or operational ties, but Culper believes that Hao Tang, a Chinese national, has been backing AppLovin since at least 2017. Tang is alleged to have controlled up to 28% of AppLovin's Class A shares before the company's IPO in 2021 and currently controls at least 9.8%.

The report also alleges that Tang has numerous ties to the Chinese Communist Party, money laundering, illegal gambling, and human trafficking operations. This has raised concerns not only for shareholders but also for national and data security. Culper Research has previously issued a short report on AppLovin in February, and the company has since announced plans to merge with TikTok's ex-China business. Culper also alleged that AppLovin formed two agency agreements with Chinese AdTech companies to expand cross-border e-commerce operations in China, which have not been disclosed to U.S. investors.

Despite the allegations, AppLovin's shares have risen more than 400% over the past year. The company beat analyst estimates on both the top and bottom lines when it reported first-quarter results last month, with advertising revenue jumping 71% year-over-year. AppLovin guided for second-quarter advertising revenue in the range of $1.20 billion to $1.22 billion.