AppLovin hires legal firm for short report investigation

PALO ALTO, Calif. - AppLovin Corporation (NASDAQ: APP), a technology firm specializing in solutions for businesses to connect with customers, has engaged the services of Alex Spiro from Quinn Emanuel Urquhart & Sullivan to conduct an independent investigation into recent short-seller reports that have targeted the company. The move underscores AppLovin’s commitment to transparency and integrity in the face of what it considers attempts to manipulate market perception through the spread of misleading information.

The investigation by Spiro, who co-chairs the Investigations, Government Enforcement & White Collar Defense Practice at the legal firm, aims to scrutinize the accuracy of the allegations made in the short reports and the motives behind them. Adam Foroughi, Co-founder and CEO of AppLovin, emphasized the company’s resolve to defend its operations and reputation against market manipulation.

AppLovin’s proactive approach to address the short report activity is part of its broader strategy to safeguard the interests of its employees, stockholders, and partners. The company has expressed its determination to reveal the facts and take necessary actions to maintain the market’s trust.

This development comes as AppLovin continues to provide a suite of software and AI solutions that enable businesses of all sizes to reach and monetize their global audiences. The company’s decision to pursue an independent review reflects its stance on maintaining a fair and transparent market environment.

The information for this article is based on a press release statement from AppLovin Corporation.

In other recent news, AppLovin Corp has been the subject of several notable developments. FBN Securities initiated coverage on AppLovin with an Outperform rating and a $385 price target, citing the company’s strong position in the mobile gaming market and its strategic initiatives for growth. Meanwhile, Wells Fargo maintained an Overweight rating with a $538 price target, noting AppLovin’s expanding e-commerce presence and addressing concerns raised in a critical short report. This report by Muddy Waters Research accused AppLovin of practices that could lead to deplatforming, raising questions about its methods for identifying high-value users and potential violations of terms of service.

Citi reaffirmed its Buy rating and a $600 price target, expressing optimism about AppLovin’s future financials, particularly with the anticipated sale of its game studios. Jefferies also maintained a Buy rating with a $600 price target, highlighting significant revenue growth and the successful scaling of e-commerce advertisers on AppLovin’s platform. Jefferies noted a 75% increase in advertising revenues in 2024, indicating the platform’s effectiveness.

AppLovin’s ongoing efforts to enhance ad targeting and onboard more web advertisers have positioned it for potential growth in the coming years. The company’s strategy involves leveraging its extensive data and targeting models to maintain a competitive edge in the digital advertising space. As these developments unfold, investors are closely monitoring AppLovin’s strategic moves and market performance.

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