New York, January 23, 2026, 10:57 AM ET — Regular session
- After slipping for two sessions, AppLovin shares edged up roughly 0.6% in morning trading.
- Company dismissed claims from a short-seller report accusing it of money laundering and fraudulent app installs
- Investors are turning to the Feb. 11 results for clearer insight into growth and compliance
AppLovin Corporation shares edged up 0.6% to $524.91 by 10:57 a.m. ET on Friday, attempting to regain footing after a steep drop following a short-seller report earlier this week. The stock had dipped as low as $509.36 during the session.
This shift is significant because AppLovin has been valued as a growth leader in mobile advertising software, and the recent allegations bring compliance risks back into focus. With earnings less than three weeks away, investors are debating if the selloff is a temporary reaction to headlines or a sign of deeper trouble.
On Wednesday, a company spokesperson fired back in an email, saying AppLovin “categorically” denies the report’s claims, labeling them “rife with false, misleading, and nonsensical allegations.” They added the company conducts “Know Your Customer” checks — standard identity and tax verifications — on all participants in its advertising network. (Investing)
CapitalWatch, a short seller betting against the stock, released a report tying AppLovin to a network that funneled illicit money from Chinese Ponzi schemes and Cambodian fraud into U.S. markets. The report also claimed AppLovin’s AI-powered AXON system and its “Silent Install” tools might be used to disguise these illicit funds as legitimate advertising revenue.
AppLovin pushed back, saying the numbers just don’t work. It argued that advertising middlemen only get a small cut of what advertisers spend. The company added that any laundering effort would waste money and still leave a clear audit trail through app stores, operating systems, and payment providers.
The stock ended Thursday at $521.94, slipping 1.99% after falling 5.83% on Wednesday, based on price data. Friday’s gains haven’t made up for the earlier losses. (Investing)
Pomerantz LLP announced late Thursday that it is probing potential claims for investors after the short report and subsequent selloff. These types of announcements typically come after sudden stock declines and can increase legal pressure. (PR Newswire)
The bigger question is whether these claims will trigger regulatory action or require fresh disclosures. AppLovin has already been under the microscope for its data collection, with a Reuters report last October revealing the U.S. SEC was reviewing its practices. At the time, the company declined to comment on any potential regulatory issues. (Reuters)
AppLovin plans to release its fourth-quarter and full-year 2025 earnings on Feb. 11, after the U.S. market closes, the company announced earlier this month. CEO Adam Foroughi and CFO Matthew Stumpf will hold a webcast at 5 p.m. ET. (Applovin)
Investors are eager for updates on ad demand, AXON’s results, and any new information on platform enforcement. A clear, concrete stance on compliance could ease concerns; anything vague might only heighten them.
At the moment, the stock moves on news alone. The key date to watch is Feb. 11, along with any regulatory or legal updates that come beforehand.
