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Fuzzy Panda Research and Culper Research have taken a short-selling stance on Applovin (APP), alleging that the mobile app designer "force feeds" other mobile app downloads onto a user's device. The stock has fallen lower on Wednesday ahead of the close.
Wedbush Securities managing director of equity research Michael Pachter comes onto Market Domination to speak on why these reports are "extraordinarily poorly reasoned."
"They reflect people who don't play games, which is less than half the population. They absolutely have no idea what Applovin does," Pachter tells Julie Hyman and Josh Lipton. "And every example they gave in each of the four reports about circular advertising and double counting revenue and fraud was a hypercasual game. And a hypercasual game just for your viewers' edification is a game that doesn't have in-app purchases."
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This post was written by Luke Carberry Mogan.