10 Firms Mirror Wall Street Slump on Thursday

2. AppLovin Corp. (NASDAQ:APP)

AppLovin dropped its share prices for a second day, tumbling 20.12 percent to end at $261.70 apiece after another short seller accused the company of engaging in practices that could lead to deplatforming.

According to Muddy Waters Research, a significant portion of APP’s e-commerce conversions might be retargeting rather than new sales, with an estimated incrementality of only 25 to 35 percent.

The report raised concerns about APP’s methods in identifying high-value users, suggesting that it might be extracting proprietary IDs from major platforms such as Facebook, Snap, TikTok, Reddit, and Google.

Muddy Waters said this could be a violation of its terms and service and could result in APP being deplatformed, similar to what happened with Cheetah Mobile.

APP is currently embroiled in a class action lawsuit over allegations of possible securities violations.

According to the lawsuit, APP provided investors with material information concerning its financial growth and stability.

APP has yet to issue any statement about the allegations.