AppLovin (APP) Under Pressure: Analyst Downgrades Follow Short Seller Barrage, Investor Lawsuit - Hagens Berman

APP Investors with Losses Encouraged to Contact the Firm Before May 5th Deadline

San Francisco, California--(Newsfile Corp. - April 22, 2025) - Just months after basking in the glow of a meteoric 700% stock surge, fueled by investor enthusiasm for its artificial intelligence technology and burgeoning ad business, AppLovin Corp. (NASDAQ: APP) is facing a shift in sentiment on Wall Street. Several prominent investment banks have significantly lowered their expectations for the stock following the release of multiple critical reports from short-selling firms about the mobile advertising technology firm.

Adding to its woes, AppLovin is now facing a securities class action lawsuit. Hagens Berman is investigating the alleged claims and urges investors who purchased AppLovin shares and suffered substantial losses to submit your losses now.

Class Period: May 10, 2023 - Feb. 25, 2025
Lead Plaintiff Deadline: May 5, 2025
Visit: www.hbsslaw.com/investor-fraud/app
Contact the Firm Now: [e-mail]
844-916-0895

Analysts Downgrade APP Shares

The latest blow came on Friday, April 11, when The Goldman Sachs Group slashed its price target for AppLovin from a lofty $500.00 to a more sobering $335.00. This downgrade followed a similar move by UBS Group earlier in the week, when the firm reduced its price target on AppLovin from $630.00 to $450.00.

Short Seller Onslaught: Allegations of Data Exploitation and Inflated Metrics

These downward revisions follow a barrage of critical reports from short sellers. Most recently, on March 28, Muddy Waters Research alleged that AppLovin's ad technology "systematically" violates app store rules by "impermissibly extracting proprietary IDs" from major platforms to deliver targeted ads without user consent. The report also claimed a significant churn rate among e-commerce advertisers, contradicting company statements.

Earlier, in February, Fuzzy Panda Research and Culper Research had also critiqued AppLovin's AXON software, with Fuzzy Panda later urging the S&P 500 committee to exclude the company due to alleged "data theft" and "revenue fraud."

Securities Class Action Alleges Misleading Statements

Adding to AppLovin's challenges, a securities class action lawsuit has been filed against the company. The lawsuit alleges that AppLovin misled investors about the capabilities of its enhanced AXON 2.0 digital ad platform and its "cutting-edge AI technologies."