Why AppLovin Stock Was Falling Today

Core Viewpoint - AppLovin's shares experienced a pullback following a short-seller report from CapitalWatch, which accused the company of being involved in a Southeast Asian money laundering network [1][3]. Group 1: Short-Seller Report - CapitalWatch claimed that AppLovin has become an "asset sale haven for cross-border black money" and has violated anti-money-laundering laws [3]. - AppLovin responded to the allegations, labeling them as "false, misleading, and nonsensical" [3][6]. - This marks the fourth short report on AppLovin in the past year, with none of the previous reports having a lasting impact [3]. Group 2: Stock Performance and Valuation - Following the report, AppLovin's stock fell by as much as 5.8% [1]. - The company has been a target for short sellers due to its high valuation and complex business model [4]. - AppLovin is expected to report its fourth-quarter earnings on February 11, with analysts predicting a revenue increase of 17.4% to $1.61 billion and earnings per share growth from $1.73 to $2.95 [4].