Applovin Stock Plummets 423% in Three Days, Trading Volume Drops to 41st Rank Amid Short Seller Allegations

On June 13, 2025, Applovin (APP) experienced a significant decline, with its stock price dropping by 4.23%, marking the third consecutive day of losses. The total trading volume for the day was 16.03 billion, a 34.6% decrease from the previous day, placing it at the 41st position in the daily stock market rankings.

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 highlights Tang's alleged ties to the Chinese Communist Party, money laundering, illegal gambling, and human trafficking operations. 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. The report alleges that AppLovin formed two agency agreements with Chinese AdTech companies BlueFocus Intelligence and eClickTech to expand cross-border e-commerce operations in China, which have not been disclosed to U.S. investors.

Culper Research is not the only short-selling firm targeting AppLovin. Muddy Waters previously alleged that AppLovin is another scammy adtech company that relies on retargeting for e-commerce conversions. Fuzzy Panda Research also accused the company of stealing data from Meta Platforms earlier this year. Despite these allegations, AppLovin's shares have risen more than 400% over the past year, and the company beat analyst estimates on the top and bottom lines when it reported first-quarter results last month. AppLovin guided for second-quarter advertising revenue in the range of $1.20 billion to $1.22 billion.