Why AppLovin Stock Slumped in June

Core Insights - AppLovin faced investor backlash primarily due to missed opportunities rather than its actual performance, including a failure to be included in a top stock index and a critical report from a short-seller [1][6][10] Group 1: Index Rebalancing - AppLovin was speculated to be a candidate for inclusion in the S&P 500 index during the quarterly rebalancing, as noted by analysts from Bank of America [4][5] - The S&P Dow Jones Indices ultimately decided not to change the composition of the S&P 500 index this time, disappointing investors [2][5] Group 2: Short-Seller Report - Culper Research published a detailed 30-page report criticizing AppLovin's business practices, particularly its interest in acquiring TikTok's non-Chinese operations [7] - The report raised concerns about a significant shareholder, Hao Tang, suggesting he has ties to the Chinese government, which could pose national security risks [8] - AppLovin has not publicly addressed the allegations made by Culper Research, which may negatively impact investor sentiment if left unaddressed [10]