AppLovin CEO urges investors to dig deeper after short-seller report, company retains Alex Spiro
Summary
AppLovin CEO Adam Foroughi hit back at new short-selling allegations from Muddy Waters Research after the ad-tech companys stock suffered its steepest drop on record on Thursday. Foroughi penned a new blog post that asked investors to "dig deeper" on the allegations, saying the reports claims about the success of their AI-powered ad tactics could be easily disproven by artificial intelligence models like Grok "in minutes." Muddy Waters on Thursday became the third short-selling firm to publish research meant to raise significant investor skepticism about the companys technology, after AppLovins stock price soared more than 700% last year. The report said AppLovins ad tactics "systematically" violate app stores terms of service by "impermissibly extracting proprietary IDs from Meta, Snap, TikTok, Reddit, Google, and others." "Its also incredibly hard for some who dont understand this technology to fathom that we are building the worlds best advertising AI model, so they need a simple narrative that were violating policies in order to comprehend our success," Foroughi wrote.
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