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Yahoo
10 hours ago
- Business
- Yahoo
Why AI Stock AppLovin Slumped Today
A report from a short seller slammed the company. It took AppLovin to task for a series of supposed transgressions, including its ambitions to buy TikTok's onetime China assets. 10 stocks we like better than AppLovin › Very frequently, when a company's stock is targeted by a vociferous short seller, it can take a hit to its share price. That was the dynamic behind AppLovin's (NASDAQ: APP) 0.7% dip on Thursday after a notable "shortie" published a report that was highly critical of the company. That decline was a bit steeper than the 0.4% slide of the S&P 500 index that day. The short seller is a firm called Culper Research, and Thursday morning it laid out in a 30-page document its reasons for shorting AppLovin. These center around AppLovin's stated aim of owning the non-China operations of that country's runaway social media success, TikTok. Culper finds that problematic, not least due to what it considers to be significant investment in AppLovin's equity by a Chinese national, Hao Tang. It also expressed dismay about what it considers to be the company's undisclosed partnerships with two companies in the Asian country. Ultimately, wrote Culper, "AppLovin's covert Chinese ownership and operations raise not only concerns for shareholders but for national security and data security -- the very concerns AppLovin purports to address by acquiring TikTok's ex-China operations." The short seller added that Hao "is a bad actor with extensive direct and indirect ties to Chinese espionage, [Chinese Communist Party] state-sponsored propaganda, human trafficking, and money laundering operations." The mild investor sell-off in the wake of Culper's report indicates that more than a few AppLovin shareholders aren't fully buying the firm's arguments. That said, the short seller does raise what might be valid concerns; AppLovin hasn't yet officially responded to the allegations, and it'll be worth watching to see if and when those apparent China connections come to light. Before you buy stock in AppLovin, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and AppLovin wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $657,871!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $875,479!* Now, it's worth noting Stock Advisor's total average return is 998% — a market-crushing outperformance compared to 174% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of June 9, 2025 Eric Volkman has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends AppLovin. The Motley Fool has a disclosure policy. Why AI Stock AppLovin Slumped Today was originally published by The Motley Fool Error while retrieving data Sign in to access your portfolio Error while retrieving data Error while retrieving data Error while retrieving data Error while retrieving data
Yahoo
18 hours ago
- Business
- Yahoo
Short seller makes scathing accusations against popular tech company
Short seller makes scathing accusations against popular tech company originally appeared on TheStreet. Culpepper Research has levied harsh accusations at a popular digital technology company, and not for the first time this year. The activist short-selling firm recently laid out a detailed case against Applovin () , a fast-growing company in the mobile technology space that has enjoyed explosive growth over the past year. Culpepper revealed a short position in APP stock, though, alleging that the tech company is engaged in highly nefarious activity. 💵💰💰💵 While APP stock is up almost 400% for the year, it has struggled recently, dipping 10% over the past week. This is likely partially due to the company being excluded from the most recent S&P 500 quarterly rebalance. However, Applovin may have bigger problems if the harsh accusations made by Culpepper Research turn out to be true. The short-seller doesn't just see the tech firm as a poor investment; it believes it may be a national security risk. Applovin is a company focused primarily on digital apps, specifically helping businesses connect with new customers through various digital platforms. Its services measure apps' performance, as well as user acquisition and monetization. The stock offers investors exposure to multiple tech markets, including digital game development and in-app has reached out to Applovin for a statement on the short report's accusations. As of this writing, the company has not responded, nor issued any public statement. While its shares have risen steadily over the past year, Culpepper Research has been conducting an investigation, culminating in two detailed reports. In February 2025, the short-selling firm accused Applovin of illicit backdoor app installations, claiming that each one helped the company profit. Now it seems to be doubling down on the short position. In its more recent report, Culpepper zeroed in on Applovin's alleged ties to Chinese investors, speculating that the company has misrepresented 'the scope of both its Chinese shareholders and its Chinese operations,' compromising U.S. national security. 'We believe AppLovin has been backed since at least 2017 by Chinese national Hao Tang, who – through a web of offshore shell companies and aided by AppLovin's vague if not deliberately obfuscated disclosures – controlled up to 28% of AppLovin Class A shares ahead of the Company's 2021 IPO, and continues to control at least 9.8% of Class A shares,' the short report states. It adds that 'undisclosed to AppLovin investors, Tang has entered into various margin loan agreements and share forward transactions that our checks indicate remain open as of at least May 2025.' Culpepper also points out that Applovin CEO Adam Foroughi has repeatedly denied any claims of Chinese ownership or operational ties regarding his company. It cites an April 2025 Fox News interview in which he stated, 'I don't know any [investors] that make up a material part of our cap table. Everyone's small." More Tech Stock News: Tech IPO smash reveals something shocking Broadcom could blow past Nvidia, expert predicts Veteran analyst unveils bold price target for Tempus AI stock The short report's authors state, though, that in their view, the company's history disproves the CEO's claims regarding his knowledge of any investors, Chinese or otherwise. In their eyes, it is clear that under his leadership, Applovin has been less than truthful with the disclosures it provides for investors. The bulk of Culpepper's bearish thesis centers around Hao Tang and his alleged ties to Applovin, specifically his controlling stake. However, it also highlights Applovin's quest to acquire TikTok's former China assets, which Foroughi framed earlier this year as an opportunity ripe with any case, the short-seller sees Applovin's ties to Tang as the most concerning element of its business. As the report states: "Tang's network is involved in money laundering, human trafficking, illegal gambling, and data-harvesting. These are all activities the U.S. government has time and time again called out in China. In our view, Tang's background disqualifies AppLovin's pursuit of TikTok's ex-China business, and AppLovin's misleading disclosures around Tang's ownership suggests a cover-up." Culpepper adds that it believes federal regulators will need to assess if a major tech company can be trusted with the data of many Americans if it harbors ties to actors like Tang, who are connected to the Chinese Communist seller makes scathing accusations against popular tech company first appeared on TheStreet on Jun 13, 2025 This story was originally reported by TheStreet on Jun 13, 2025, where it first appeared.
Globe and Mail
2 days ago
- Business
- Globe and Mail
Why AI Stock AppLovin Slumped Today
Very frequently, when a company's stock is targeted by a vociferous short selle r, it can take a hit to its share price. That was the dynamic behind AppLovin 's (NASDAQ: APP) 0.7% dip on Thursday after a notable "shortie" published a report that was highly critical of the company. That decline was a bit steeper than the 0.4% slide of the S&P 500 index that day. Alleged Chinese connections The short seller is a firm called Culper Research, and Thursday morning it laid out in a 30-page document its reasons for shorting AppLovin. Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Continue » These center around AppLovin's stated aim of owning the non-China operations of that country's runaway social media success, TikTok. Culper finds that problematic, not least due to what it considers to be significant investment in AppLovin's equity by a Chinese national, Hao Tang. It also expressed dismay about what it considers to be the company's undisclosed partnerships with two companies in the Asian country. Ultimately, wrote Culper, "AppLovin's covert Chinese ownership and operations raise not only concerns for shareholders but for national security and data security -- the very concerns AppLovin purports to address by acquiring TikTok's ex-China operations." The short seller added that Hao "is a bad actor with extensive direct and indirect ties to Chinese espionage, [Chinese Communist Party] state-sponsored propaganda, human trafficking, and money laundering operations." Muted reaction from the market The mild investor sell-off in the wake of Culper's report indicates that more than a few AppLovin shareholders aren't fully buying the firm's arguments. That said, the short seller does raise what might be valid concerns; AppLovin hasn't yet officially responded to the allegations, and it'll be worth watching to see if and when those apparent China connections come to light. Should you invest $1,000 in AppLovin right now? Before you buy stock in AppLovin, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and AppLovin wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $657,871!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $875,479!* Now, it's worth noting Stock Advisor 's total average return is998% — a market-crushing outperformance compared to174%for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of June 9, 2025
