APPPLTRMETAU

APP: Why the Short Seller Report Gets It Wrong

FUNDA·February 20, 2025

Bear Cave claims look immaterial; META data sharing fuels Axon2 CPA edge, supporting APP ad ROI.

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Momentum stocks were dragged down by PLTR, with Applovin falling the most due to a new short seller report from The Bear Cave and Unity unwind.

Let's summarize the contents of the short seller report from The Bear Cave:

  • Gambling app ads and get-paid-to ads

  • One game had 11 ads that switched quickly, making them difficult to read

  • Applovin forced many customers to spend $600,000 on META to continue using Applovin's services, leading the author to suspect attribution fraud

  • Customers suspect Applovin of fraud because their CAC on Applovin is too good to be true

  • The report cites Lauren Balik's short thesis on Applovin

Here's my response on The Bear Cave report:

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