Shares of AppLovin sank 20% on Thursday, their steepest drop on record, as another short-selling firm raised concerns about the company’s digital ad technology and claimed that it’s violating app store rules.
AppLovin tumbled $65.92 to close at $261.70. The stock soared more than 700% last year, the biggest gain among U.S. tech companies, due to enthusiasm surrounding AppLovin’s artificial intelligence technology and the growth it was spurring in its ad business.
But Muddy Waters Research on Thursday became the third short-selling firm to publish a report meant to raise significant investor skepticism. The stock is down 19% in 2025 after Thursday’s drop.
The report said that AppLovin’s ad tactics “systematically” violate app stores’ terms of service by “impermissibly extracting proprietary IDs from Meta, Snap, TikTok, Reddit, Google, and others.” In so doing, AppLovin is funneling targeted ads to users without their consent, Muddy Waters said.
“If APP is not deplatformed, logically, numerous competitors will start copying APP’s techniques because there is little technology involved,” the firm wrote.
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Last month, Fuzzy Panda Research was one of two firms, along with short-seller Culper Research, that critiqued AppLovin’s AXON software, which drove its earnings growth and stock surge. The shares dropped 12% on Feb. 26, the day of the short reports. Earlier in February, AppLovin reported a revenue and earnings beat.
After the short reports were published last month, AppLovin CEO Adam Foroughi wrote a blog post, defending his company’s technology and practices, and taking aim at the short sellers trying to profit from AppLovin’s decline.
An AppLovin spokesperson didn’t provide a comment on Thursday, referring CNBC to Foroughi’s post.
“It’s disappointing that a few nefarious short-sellers are making false and misleading claims aimed at undermining our success, and driving down our stock price for their own financial gain, rather than acknowledging the sophisticated AI models our team has built to enhance advertising for our partners,” Foroughi wrote. “It’s also noteworthy that the short reports emerged after our earnings report, where we would be in a period of being unable to respond with financial performance.”
Earlier this month, Fuzzy Panda penned a letter to the S&P 500 inclusion committee reiterating its claims of fraudulent ad tactics and alleging that AppLovin didn’t meet the committee’s “gold standard.” The firm encouraged the committee to keep AppLovin out of the S&P 500.
“AppLovin’s recent revenue growth has been based in data theft, revenue fraud, and the exploitation of our country’s laws protecting children,” the firm wrote to the S&P committee.
One of Muddy Waters’ central claims is that e-commerce advertisers are bailing on AppLovin. The firm said that it analyzed 776 advertisers active early in the first quarter and noted that the churn rate was about 23%, while Foroughi “reportedly claims there has been no churn,” according to the report.
Muddy Waters said it conducted the churn analysis by looking at e-commerce websites that, on Jan. 3, had AppLovin’s AXON pixel. The firm then re-ran those checks from March 24-26, and said it found 21 sites with “broken links,” and another 171 that no longer contained the pixel.
The 23% “churn rate is based only on those customers who removed the pixel,” the firm wrote.
A representative for Muddy Waters declined to comment.
Elon Musk, CEO of SpaceX and Tesla, attends the Viva Technology conference at the Porte de Versailles exhibition center in Paris on June 16, 2023.
Gonzalo Fuentes | Reuters
SpaceX and Tesla CEO Elon Musk criticized acting NASA Administrator Sean Duffy after he told media outlets this week that the billionaire’s space company is falling behind U.S. plans to return to the moon.
“The person responsible for America’s space program can’t have a 2 digit IQ,” Musk wrote in a Tuesday post on X.
In response to other user posts, Musk referred to the transportation secretary as “*Sean Dummy” and said he is “trying to kill NASA!” Musk later posted a poll asking users “Should someone whose biggest claim to fame is climbing trees be running America’s space program?” Musk appeared to be referring to Duffy’s background as a competitive speed climber.
On Monday, Duffy told CNBC that SpaceX was “behind” schedule on building its lunar landing system for the space agency’s Artemis III mission and that he would consider other contracts with competitors such as Jeff Bezos’ Blue Origin.
SpaceX and Blue Origin will have until Oct. 29 to offer ways to speed up the project, a NASA official told CNBC. The agency will also ask the industry to suggest ways to “increase the cadence” of Moon missions.
President Donald Trump selected Duffy to become the acting NASA administrator in July. The position had been vacant since the start of Trump’s presidency. Trump had previously nominated Musk ally Jared Isaacman, but he pulled the nomination earlier this year, saying he was a “blue blooded Democrat, who had never contributed to a Republican before.”
CNBC reported earlier this month that Trump has held talks with Isaacman to reconsider the role.
NASA is racing against China and others to get humans back to the moon for the first time since 1972. The space agency launched the Artemis project under Trump’s first administration with the goal of creating a “long-term presence” on the moon for science and tech discovery.
SpaceX won a contract to build the technology in 2021. Other contractors such as Blue Origin, Lockheed Martin and Boeing are participating in various stages of the program.
But the project has been fraught with setbacks.
NASA launched its first Artemis mission in November 2022. Last December, the agency delayed its planned Artemis missions. NASA’s first Artemis launch with astronauts is now slated for April 2026, with a third mission to land two astronauts on the Moon planned for 2027.
Now, the space agency is also grappling with the aftershocks from an ongoing government shutdown that threatens to stall any plans to reopen contracts. CNBC previously reported that NASA’s employees working on the mission with contractors will work during the shutdown.
HBO Max is the latest streaming services to raise its prices.
The streaming giant, owned by Warner Bros. Discovery, announced Tuesday that it is raising prices across all plans. HBO Max’s Basic with ads plan is increasing $1 a month to $10.99, the Standard plan is going up $1.50 to $18.49, and Premium is increasing $2 to $22.99. HBO Max last raised prices in June 2024.
The price hikes are effective immediately for new subscriptions. Existing monthly subscribers will be notified 30 days in advance of their plan renewing, with the new prices starting on their next billing date on or after November 20, the company said.
The updates come as the streaming market becomes increasingly saturated with options — and as other major apps hike their prices. Disney raised the price of its Disney+ plans and bundles last month, Apple hiked the price of Apple TV by 30% in August and Netflixraised its prices early this year.
WBD CEO David Zaslav indicated in September that price increases were on the way along with a stricter crackdown on sharing passwords.
“The fact that this is quality, and that’s true across our company, motion picture, TV production and streaming quality, we all think that gives us a chance to raise prices,” Zaslav said at the Goldman Sachs Communacopia + Technology Conference last month. “We think we’re way underpriced.”
As of June 30, WBD said it had 125.7 million paying subscribers to all of its streaming services. That stat includes HBO Max as well as other legacy linear subscribers to HBO, who have access to the streaming service.
HBO Max’s news comes as its parent company, WBD, undergoes changes of its own. The company announced in June that it plans to split into two public companies by 2026. A streaming and studios company would include its movie properties and HBO Max, while a global networks business would include linear channels like CNN and TNT Sports.
At the same time, WBD is fielding takeout interest from companies including Paramount Skydance and said Tuesday it’s open to a sale.
Packages on a conveyor belt at an Amazon fulfilment center in Dartford, UK, on Monday, July 7, 2025.
Jason Alden | Bloomberg | Getty Images
Amazon on Tuesday launched a new ultrafast delivery service in the United Arab Emirates that can ferry groceries, cosmetics, electronics and other household items to shoppers in 15 minutes or less.
The service is called Amazon Now and includes a range of “everyday essentials,” the company said in a release.
Amazon said orders can be placed “24/7” and are shipped out via micro-fulfillment centers, or small-format warehouses, located in UAE neighborhoods. Each site’s product selection is tailored “based on hyperlocal demand,” the company said.
Some locations can receive deliveries in as little as six minutes, Amazon said.
The launch in the UAE marks an expansion of Amazon Now, which debuted in Bangalore and New Delhi earlier this year. Amazon Now will compete with established “quick commerce” players like Zepto, Swiggy and Blinkit in India, as well as Noon and Careem in the UAE.
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Amazon has built up a sprawling in-house logistics and fulfillment network over the past several years that’s given it increasingly greater control over delivery speeds.
The company is delivering more items the same or next day after making two-day delivery the standard, and it’s also launching delivery drones in some pockets of the U.S. and Europe, which are capable of dropping off some items in 30 minutes or less.
A wave of instant delivery startups took hold in the U.S. in recent years, promising to drop items at shoppers’ doorsteps in 15 minutes or less, but many of them were acquired or shut down, such as Russia-born Buyk or Fridge No More, while Turkey’s Getir exited the U.S. last year.
Prime members get free delivery for Amazon Now orders that are above $6 (AED 25), while orders below that threshold will incur a delivery fee of about $1 (AED 6).