The short-seller assault on AppLovin is getting ratcheted up a notch.
A week after Fuzzy Panda Research put out a report alleging that AppLovin’s ad-tech software is the “nexus of a house of cards,” and accusing the company of violating Google and Apple’s app store policies, the short-seller firm is urging the S&P Index Committee to keep AppLovin’s stock out of the benchmark index.
“We are writing to the committee regarding very serious allegations that have been raised against a company that will potentially be added to the S&P 500, AppLovin (APP),” Fuzzy Panda wrote in a March 4 letter to the committee, which is responsible for making quarterly changes to the index. CNBC viewed a copy of the letter.
Representatives from AppLovin and S&P declined to comment.
Fuzzy Panda’s case against AppLovin comes after the company’s share price soared more than 700% in 2024, lifting its market cap past $110 billion. The historic rally made AppLovin a prime candidate for inclusion in the S&P 500, whose median market cap is about $36 billion. However, after the stock was left out of the index in the most recent change in December, AppLovin plunged 15%.
Cloud software vendor Workday was added in December, even though it was valued at tens of billions of dollars less than AppLovin. Workday shares rallied 5% on the news. Stocks often rise when they get included in the index, because fund managers that track the widely followed benchmark have to buy shares.
The next quarterly rebalancing, which involves the index committee’s changes to the S&P 500, is expected later in March. As a short seller, Fuzzy Panda is betting on a drop in AppLovin’s stock price, and stands to profit if it declines further.
In its letter, Fuzzy Panda said AppLovin doesn’t meet the S&P 500’s “gold standard.” Last week, Fuzzy Panda was one of two firms, along with short-seller Culper Research, that critiqued AppLovin’s AXON software, the driver of the company’s earnings growth and the stock surge. The shares dropped 12% on Feb. 26, the day of the short reports.
Culper didn’t respond to a request for comment.
AppLovin released the updated 2.0 version of AXON in 2023. The company says the technology, powered by advanced artificial intelligence, helps put more targeted ads within apps, particularly mobile games, and that it’s been expanding to help e-commerce companies with their promotions.
Following the reports from Fuzzy Panda and Culper, AppLovin CEO Adam Foroughi wrote in a blog post that the notes were “littered with inaccuracies and false assertions.”
“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.”
AppLovin reported an earnings beat earlier in February, sending the stock up 34% in two days and past $500 for the first time. Since then, the stock is down almost 50%, plummeting significantly more than the broader market, after dropping 18% on Thursday.
Multiple Wall Street analysts agreed with Foroughi’s assessment.
“We believe most of the issues that have been highlighted recently have almost no merit,” analysts at BTIG wrote in a Feb. 26 note, reiterating their buy rating.
Analysts at Piper also kept their buy recommendation and said they were “buyers of APP following the selloff.”
“APP’s customers are the most sophisticated in digital advertising & we believe any alleged fraudulent practice would be felt immediately via their own attribution or incrementality testing,” they wrote.
Fuzzy Panda’s letter to the S&P committee reiterated its earlier allegations of fraudulent ad tactics, such as AppLovin’s alleged stealing of data from Meta in its e-commerce push and its tracking of children’s devices, violating Apple and Google’s rules. CNBC has not been able to independently verify Fuzzy Panda’s allegations.
Fuzzy Panda said its research consisted of interviews with former employees at AppLovin and Meta, industry experts and executives at other ad-tech companies as well as its own analysis and testing of the technology.
“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.
In its earlier report on its short position, Fuzzy Panda wrote, “AppLovin has been playing a dangerous game and is risking a permanent ban from the duopoly mobile app store platforms that controls the gateway to >99% of the market.”
Representatives from Meta, Apple and Google didn’t provide comments.
According to Fuzzy Panda’s website, the firm has taken on about 20 companies, including electric car makers Fisker and Lucid, insurer Globe Life and online education company Stride.
Globe Life shares plummeted more than 50% in April after Fuzzy Panda, in revealing its short position, said it had uncovered numerous instances of insurance fraud. Globe life responded by calling the report “wildly misleading” and “driven solely by short-term profit” from short sellers.
Inside a secretive set of buildings in Santa Barbara, California, scientists at Alphabet are working on one of the company’s most ambitious bets yet. They’re attempting to develop the world’s most advanced quantum computers.
“In the future, quantum and AI, they could really complement each other back and forth,” said Julian Kelly, director of hardware at Google Quantum AI.
Google has been viewed by many as late to the generative AI boom, because OpenAI broke into the mainstream first with ChatGPT in late 2022.
Late last year, Google made clear that it wouldn’t be caught on the backfoot again. The company unveiled a breakthrough quantum computing chip called Willow, which it says can solve a benchmark problem unimaginably faster than what’s possible with a classical computer, and demonstrated that adding more quantum bits to the chip reduced errors exponentially.
“That’s a milestone for the field,” said John Preskill, director of the Caltech Institute for Quantum Information and Matter. “We’ve been wanting to see that for quite a while.”
Willow may now give Google a chance to take the lead in the next technological era. It also could be a way to turn research into a commercial opportunity, especially as AI hits a data wall. Leading AI models are running out of high-quality data to train on after already scraping much of the data on the internet.
“One of the potential applications that you can think of for a quantum computer is generating new and novel data,” said Kelly.
He uses the example of AlphaFold, an AI model developed by Google DeepMind that helps scientists study protein structures. Its creators won the 2024 Nobel Prize in Chemistry.
“[AlphaFold] trains on data that’s informed by quantum mechanics, but that’s actually not that common,” said Kelly. “So a thing that a quantum computer could do is generate data that AI could then be trained on in order to give it a little more information about how quantum mechanics works.”
Kelly has said that he believes Google is only about five years away from a breakout, practical application that can only be solved on a quantum computer. But for Google to win the next big platform shift, it would have to turn a breakthrough into a business.
An attendee wearing a Super Mario costume uses a Nintendo Switch 2 game console while playing a video game during the Nintendo Switch 2 Experience at the ExCeL London international exhibition and convention centre in London, Britain, April 11, 2025.
Isabel Infantes | Reuters
Nintendo on Friday announced that retail preorder for its Nintendo Switch 2 gaming system will begin on April 24 starting at $449.99.
Preorders for the hotly anticipated console were initially slated for April 9, but Nintendo delayed the date to assess the impact of the far-reaching, aggressive “reciprocal” tariffs that President Donald Trump announced earlier this month.
Most electronics companies, including Nintendo, manufacture their products in Asia. Nintendo’s Switch 1 consoles were made in China and Vietnam, Reuters reported in 2019. Trump has imposed a 145% tariff rate on China and a 10% rate on Vietnam. The latter is down from 46%, after he instituted a 90-day pause to allow for negotiations.
Nintendo said Friday that the Switch 2 will cost $449.99 in the U.S., which is the same price the company first announced on April 2.
“We apologize for the retail pre-order delay, and hope this reduces some of the uncertainty our consumers may be experiencing,” Nintendo said in a statement. “We thank our customers for their patience, and we share their excitement to experience Nintendo Switch 2 starting June 5, 2025.”
The Nintendo Switch 2 and “Mario Kart World“ bundle will cost $499.99, the digital version “Mario Kart World” will cost $79.99 and the digital version of “Donkey Kong Bananza” will cost $69.99, Nintendo said. All of those prices remain unchanged from the company’s initial announcement.
However, accessories for the Nintendo Switch 2 will “experience price adjustments,” the company said, and other future changes in costs are possible for “any Nintendo product.”
It will cost gamers $10 more to by the dock set, $1 more to buy the controller strap and $5 more to buy most other accessories, for instance.
An employee walks past a quilt displaying Etsy Inc. signage at the company’s headquarters in the Brooklyn.
Victor J. Blue/Bloomberg via Getty Images
Etsy is trying to make it easier for shoppers to purchase products from local merchants and avoid the extra cost of imports as President Donald Trump’s sweeping tariffs raise concerns about soaring prices.
In a post to Etsy’s website on Thursday, CEO Josh Silverman said the company is “surfacing new ways for buyers to discover businesses in their countries” via shopping pages and by featuring local sellers on its website and app.
“While we continue to nurture and enable cross-border trade on Etsy, we understand that people are increasingly interested in shopping domestically,” Silverman said.
Etsy operates an online marketplace that connects buyers and sellers with mostly artisanal and handcrafted goods. The site, which had 5.6 million active sellers as of the end of December, competes with e-commerce juggernaut Amazon, as well as newer entrants that have ties to China like Temu, Shein and TikTok Shop.
By highlighting local sellers, Etsy could relieve some shoppers from having to pay higher prices induced by President Trump’s widespread tariffs on trade partners. Trump has imposed tariffs on most foreign countries, with China facing a rate of 145%, and other nations facing 10% rates after he instituted a 90-day pause to allow for negotiations. Trump also signed an executive order that will end the de minimis provision, a loophole for low-value shipments often used by online businesses, on May 2.
Temu and Shein have already announced they plan to raise prices late next week in response to the tariffs. Sellers on Amazon’s third-party marketplace, many of whom source their products from China, have said they’re considering raising prices.
Silverman said Etsy has provided guidance for its sellers to help them “run their businesses with as little disruption as possible” in the wake of tariffs and changes to the de minimis exemption.
Before Trump’s “Liberation Day” tariffs took effect, Silverman said on the company’s fourth-quarter earnings call in late February that he expects Etsy to benefit from the tariffs and de minimis restrictions because it “has much less dependence on products coming in from China.”
“We’re doing whatever work we can do to anticipate and prepare for come what may,” Silverman said at the time. “In general, though, I think Etsy will be more resilient than many of our competitors in these situations.”
Still, American shoppers may face higher prices on Etsy as U.S. businesses that source their products or components from China pass some of those costs on to consumers.
Etsy shares are down 17% this year, slightly more than the Nasdaq.