AppLovin After the Report

JohnnyYoung
01-22

According to the latest news, $AppLovin Corporation(APP)$ refuted all allegations in the short-seller report immediately, stating that the claims about " $AppLovin Corporation(APP)$ facilitating money laundering" or "its products being used for unauthorized downloads" are unfounded.While this move may ease the pressure of stock selling in the short term, in the long run, the successive short-seller reports have already left indelible impacts on $AppLovin Corporation(APP)$ .

If regulators or judicial authorities confirm the core allegations, AppLovin will no longer be seen as a run-of-the-mill high-volatility growth stock. Instead, it will be reclassified as an asset with systemic compliance risks.Once questions are raised about the company’s ownership structure, shareholder backgrounds, and governance transparency, these risks won’t just vanish even if the final verdict is clean. On the contrary, they will solidify into a permanent ESG and governance risk premium that’s here to stay.

Simply put:The company’s fundamentals may survive intact—but its valuation multiples will probably never return to their previous levels.

Capitalwatch releases high-profile short-selling report accusing AppLovin of advertising money laundering and assisting Southeast Asian fraud
Short-selling agency Capitalwatch released a report accusing the core shareholders of Nasdaq-listed AppLovin of systemic compliance risks and financial crimes, saying that its advertising technology was used to launder money and assist Southeast Asian fraud groups, which may trigger a regulatory storm.
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Comments

We need your insight to fill this gap
Leave a comment
12