New York, January 22, 2026, 10:57 EST — Regular session
- AppLovin shares dropped further in early trading after a short-seller report surfaced, followed by the company’s swift rebuttal.
- CapitalWatch claimed money-laundering links, but Piper Sandler dismissed the report as offering “little evidence” and maintained its bullish rating.
- Focus shifts to AppLovin’s Feb. 11 earnings, with investors eager to see if management tackles the allegations head-on.
Shares of AppLovin Corp (APP.O) slipped roughly 2.6% to $518.98 by 10:57 a.m. EST Thursday, deepening their retreat after a short-seller report claimed the mobile ad company was involved in money laundering.
The decline is significant since short-seller attacks can swiftly drain liquidity from momentum stocks, pushing investors to factor in legal and compliance risks—even if the claims remain contested.
It arrives right before AppLovin’s upcoming earnings report, pushing traders to focus more on controls and customer screening than on growth numbers alone.
CapitalWatch labeled AppLovin a “safe haven” for illicit funds linked to criminal activity — allegations the company firmly denied in an email statement reported by Investing.com. AppLovin called the claims “false, misleading, and nonsensical,” and said it “categorically” rejects accusations regarding its ownership and operations. The company highlighted its “Know Your Customer” checks, a basic identity screening process for ad buyers, along with tax verification requirements for partners. 1
Piper Sandler took a more measured stance in a note, stating the report “provides little evidence to support the claims.” They maintained an Overweight rating with an $800 price target. 2
The stock slipped again Wednesday after AppLovin disputed the report. Traders saw it as just another in a string of short-seller assaults targeting the company. 3
AppLovin operates a mobile marketing and app-monetization platform tailored for app developers and advertisers. Its product lineup features AppDiscovery, MAX, and Adjust. The company is based in Palo Alto, California. 4
Still, the danger for bulls is that the allegations stick around, rattling advertisers or drawing tougher scrutiny from regulators and counterparties, which could weigh on the stock ahead of results.
AppLovin will release its fourth-quarter and full-year 2025 results on February 11, after the U.S. market closes. The company will also hold a webinar at 5:00 p.m. ET, featuring CEO Adam Foroughi and CFO Matthew Stumpf. 5
