AppLovin Stock Tumbles as Short Sellers Allege AI-Fueled Growth a ‘Smokescreen’ | Global News Avenue

Shares of Applovin (app) After two times, it fell as much as 22% on Wednesday Short sellers The company has published reports on technology companies, accusing various fraudulent and deceptive practices.

Tech company shares rose More than 700% in 2024make it Russell 1000 Last year’s index. Stocks surge Income rises and Investor enthusiasm Its “Axon 2.0” artificial intelligence model is making it more efficient to match ads for mobile games.

Appleovin declined to comment on the text message report Wednesday.

Appleovin shares peaked at $510.13 earlier this month, up more than 57% from the start of the year. Followed by seven failed meetings as a passion for several AI-related stocks Have grown Shaking in recent weeks.

Culper Research calls AI conversation a “smoke screen”

Culper Research Short Seller Reports Applovin’s Proposition AIThe capability effectiveness of Axon 2.0 is a “smoke screen” that can disperse its true growth momentum.

“We believe that Appleovin’s success is not powered by AI, but is system integration and exploitation licensed by well-known dangerous applications that silently trigger the installation of backdoor applications,” Culper Research Analysts wrote.

Culper’s report says Applevin’s software can be pre-installed in various Android Phone, allowing direct download of the application without passing through letters (GOOGL) Google Play Store. This allows Applovin to create ads placed in mobile games, can download other mobile games without user consent, make their ads look more efficient and generate more every install incomeshort sellers claim.

Fuzzy Panda says Applovin’s e-commerce advertising product uses metadata

Meanwhile, another Applovin report from vague Panda Research analysts accused Applevin’s growing e-commerce advertising business of effectively “stealing data” from the Meta platform (Yuan).

They claim that Appleovin uses customers on Meta platforms (such as Facebook) and Instagram To “reversely engineer” the ad data of metadata so that its ads look more effective than being alone. They also claim that Appleovin’s software can track users without the consent of children.

“Even without a (FTC) fine or violating California’s privacy laws, the power to stop Applovin’s cruel business practices is in the hands of three largest tech companies – Apple, Google and Meta,” the short seller wrote.

Recently, Appleovin’s stock has fallen nearly 16% to about $318, but is priced almost five times the stock’s value a year ago.