Applovin Surges to 20th in Trading Volume Amid Controversial Short Report

On June 12, 2025, Applovin (APP) experienced a significant trading volume of $24.48 billion, marking a 77.75% increase from the previous day. This surge placed Applovin at the 20th position in terms of trading volume for the day. However, the stock has since declined by 0.74%, marking two consecutive days of decrease and a total drop of 0.79% over the past two days.

On June 12, 2025, Culper Research published a critical short report on Applovin, alleging a range of deceptive practices and questionable business tactics. The report highlighted concerns over undisclosed agency agreements with two Chinese AdTech firms, raising transparency issues for investors and regulators. Culper Research also claimed that Applovin's AI platform, AXON 2.0, is primarily a promotional tool rather than a genuine revenue driver. The report further accused Applovin of exploiting app permissions to enable silent, backdoor app installations, which directly translate into profits for the company. Additionally, the report suggested that Applovin has copied Meta's advertising strategies and misappropriated data from Meta for its e-commerce initiatives. These allegations have intensified investor scrutiny and contributed to significant market volatility.

Despite the controversies, some industry analysts argue that many of the practices highlighted by Culper are common across the adtech industry. There is skepticism over the feasibility of large-scale ad fraud at Applovin's scale, as advertisers can generally measure the incremental performance of their spend. The debate continues over whether Applovin's methods cross the line from aggressive industry standards to outright fraud. The situation remains fluid as investigations and debates over the company's practices continue.