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A short attack on Applovin becomes shocked on the step.
A week after a vague panda Put the report Claiming the Applovin software “Nexus of the House Cards” and the company’s charge of violating Google and Apple’s The App Store policy, the Short -Campaid Seller calls on the S&P Index Index Committee.
“We write the Committee on very serious charges that were raised against the company that will potentially be added to the S&P 500, Applovin (App),” Fuzzy Panda wrote in a letter on March 4 to the Committee, which is responsible for the quarterly changes to the index. CNBC viewed a copy of the letter.
Applovin and S&P representatives refused to comment.
Case of the fuzzy panda vs Applovin comes after the company’s stock price flew off More than 700% In 2024, raising a $ 110 billion market capitalization. The historic action has made Applovin the main candidate for inclusion in the S&P 500, the average market restriction of about $ 36 billion. However, after the shares remained under the index’s borders in the latest change in December, Applovin decreased by 15%.
The supplier of cloud software A working day It was added in December, although it was estimated by tens of billions of dollars less than Applovin. A shares of the working day cohesive 5% In the news. Reserves often grow when they are included in the index because the fund heads that monitor them should buy stocks.
The next quarterly balance, which provides for the changes of the committee on the S&P 500 index, is expected later in March. As a short seller, Fuzzy Panda relies on the cost of Applovin’s stock value and brings profit when it refuses.
In his Fuzzy Panda letter, Applovin does not meet the S&P 500 standard. Last week Fuzzy Panda was one of two firms as well as short -haired Culper Research sellers who criticized Applovin’s Axon’s software, a company driver Growth of profit And the shares are splash. On February 26, shares decreased by 12%, a day of short reports.
Culper did not respond to a comment request.
Applovin released the updated version of Axon 2.0 in 2023. The company says the technology that works on artificial intelligence, helps put more focused advertising in applications, especially mobile games, and that it is expanding to help e -commerce companies in its actions.
After reports from Fuzzy Panda and Culper, Applovin CEO Adam Forly wrote in Message in the blog that notes were “littered with inaccuracies and false statements.”
“The disappointment that several moody short sellers are false and misleading requirements aimed at undermining our success, and reducing our shares for our own financial benefits, rather than acknowledging the complex AI models that our teams have created to enhance advertising for our partners,”-wrote forough. “It is also noteworthy that short reports appeared after our income report, where we will be during the period when they were unable to respond to the financial indicators.”
Applovin reported Salary bit Earlier in February he sent shares for 34% in two days and for the first time at $ 500. Since then, the shares have fallen by almost 50%, which falls much more than a wider market after 18% fall on Thursday.
Many Wall -Strit analysts have agreed with the Foroughi assessment.
“We believe that most of the issues that have been highlighted recently have almost no merit,” BTIG analysts wrote on February 26, repeating the purchase rating.
Piper analysts also retained a purchase recommendation and stated that “buyers of the application after sale”.
“App customers are the most difficult in digital advertising, and we believe that any alleged fraudulent practice will be felt immediately through their own attribution or testing,” they wrote.
A letter of fuzzy panda to the S&P Committee repeated it Earlier charges fraudulent advertising tactics, for example, allegedly stealing Applovin data Meta In their e -commerce and tracking baby devices, breaking Apple and Google rules. CNBC was unable to check the FUZZY Panda allegations on its own.
Fuzzy Panda said his research consisted of interviews with former Applovin and Meta staff, experts and heads of industry industry companies, as well as their own analysis and testing.
“The latest Applovin revenue growth was based on data theft, income fraud and the operation of our country’s laws that protect children,” the firm wrote to the S&P Committee.
In her previous report on her short position, Fuzzy Panda wrote: “Applovin plays a dangerous game and risks a constant ban on the Duopoline Platforms of Mobile App Store, which manages the gateway to> 99% of the market.”
Representatives Meta, Apple and Google did not comment.
According to the Fuzzy Panda web -resort, the firm has accepted about 20 companies, including Fisker and Lucid electric vehicles, Globe Life insurer and online educational campaign Step.
Life of the Globe In April, stocks fell over 50% after vague panda, in REvolution of one’s short positionHe said it revealed many cases of insurance fraud. Life Globe answers Calling the report “wildly” and “moves exceptionally short -term income” from short sellers.
