Applovin’s share, a platform for application technology, has been targeted by empty sellers. The allegations of the shortsellers weigh heavily, the company defends itself.
• Applovine faced with allegations of shortsellers
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• Advertising fraud is in the room
Applovin’s shares reacted to current developments at NASDAQ on Wednesday: the share certificate concluded 12.22 percent weaker at $ 331.00 on Wednesday. In pre-exchanging trading on Thursday, a slight recovery is sometimes emerged with an increase of 3.93 percent to $ 344.00.
Shortseller Fuzzy Panda with sharp allegations
The shortseller Fuzzy Panda Research had previously published a report in which the mobile-ad-tech company was accused of “advertising fraud” and dubious business practices. In particular, they referred to Axon 2.0, the black box algorithm for machine learning (ML), who acted as a “intermediary” between advertisers and publishers and helped applovine to grow strong. “Our research has shown that Axon 2.0 is the hub of a house of cards that are based on tactics that experts refer to as” advertising fraud “. We believe that Applovine applied all the tricks. We were told that they steal meta as part of their e-commerce offensive data. Google and Apple’s app store guidelines violate, “said the empty seller.
Second shortseller joins
Another empty seller, Culper Research, also critically targeted Applovin at the same time: “Applovin consistently attributes Axon 2.0 to his mobile gaming business in the past two years and has now doubled his advertising for Axon 2.0, in his claim that the company will soon also revolutionize e-commerce advertising. Applovine would like to believe that investors would like to believe that Axon 2.0, in the words of CEO Adam Foroughi, is “a blackbox”- not reproducible and awesome. Market capitalization of $ 173 billion at the top. We believe that Applovine could go into history as the greatest US stock advertising that has failed since at least the global financial crisis, “says a report.
But the allegations go much further: According to Culper Research, the recent success of the company in the area of mobile gaming is “the systematic use of app authorizations”, which enables advertisers themselves to load silent app installations triggered by back doors with just one click directly on the users’ phones, emphasizes the empty seller. Since Applovin is largely paid for per installation, any illegal installation leads directly to profit. In addition, it is convinced that applovins burgeoning e-commerce initiative is “a deception” that the company manipulated in its favor from the start.
Both companies have also announced that Applovine have been dealt with empty sales positions, i.e. to bet on the crash of the shares.
Applovin CEO tries to smooth the waves
In response to the reports of the empty sellers, the CEO of Applovin, Adam Foroughi, turned to a letter published on the homepage to shareholders, business partners and the team. “It is disappointing that some shameful empty sellers make false and misleading claims that aim to undermine our success and push our share price into their own financial advantage instead of recognizing the sophisticated AI models that our team developed to improve advertising for our partners,” he denied the accusations of the shortseller.
In addition, he specifically referred to some of the allegations and emphasized that the Applovin platform was subject to the guidelines of the app stores – as well as all the games advertised by the company, should comply with the guidelines of the App Stores. “Our business is based on transparency and integrity. Our partners spend billions every year because we achieve real, incremental value in the form of income that can be attributed directly to the advertising design issued – which proves that our business model is both legitimate and profitable for partners.”
To accuse that apps were “installed” by the back door “on customer devices, For didughi explained:” Every download is the result of an explicit user decision – beyond the app store or our direct download experience. Our economic model requires real, highly targeted engagement to ensure that our campaigns have a meaningful, measurable Submit results “.
He also defended himself against the claim made by Fuzzy Panda that children would be tracked. “Our conditions and guidelines expressly prohibit apps that are only developed and/or to them for children, to provide partners, to provide children’s data and to initialize partners in connection with children’s data”.
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