Shares of AppLovin (APP +1.12%) were pulling back today after the high-flying ad-tech company got hit by another short-seller report.

This time, CapitalWatch, a financial research company, accused AppLovin of fostering a Southeast Asian money laundering network.

The accusation came out on Monday, and the stock fell as much as 5% yesterday, but AppLovin recouped most of those losses. Today, AppLovin pushed back on the report as the stock fell 5.8%.

Image source: Getty Images.

What the short report said

CapitalWatch, which is not a well-known short-seller, said that AppLovin had become an "asset sale haven for cross-border black money," and that it had violated anti-money-laundering laws.

In a statement, AppLovin called the allegations "false, misleading, and nonsensical."

APP - AppLovin

$269.12+$2.99 (+1.12%)

NASDAQ · As of 4:00 PM ET 10/19/26

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Key data points

Market capMarket cap calculated using publicly traded shares outstanding only. Does not include unlisted, private, or dual-class non-traded shares. Implied market cap may vary.$89.06B

Day's range$262.29 - $270.40

52wk range$260.59 - $738.01

Volume2.9M

Avg volume5.7M

Gross margin87.65%

What's next for AppLovin

This is at least the fourth short report on AppLovin over the last year or so, and none of the previous ones have stuck.

AppLovin is a ripe target for short sellers in a number of ways, as the stock has soared in recent years, it trades at a lofty valuation, and its business model isn't the most straightforward.

AppLovin will have a chance to bounce back when it reports fourth-quarter earnings on Feb. 11. Analysts see revenue increasing 17.4% to $1.61 billion, which includes a headwind for the sale of its apps business, and earnings per share growing from $1.73 to $2.95.