On February 9, 2026, AppLovin Corp. issued a formal response to a retraction by short‑seller CapitalWatch, which had previously alleged that major shareholder Hao Tang was linked to criminal organizations. The retraction was first posted on CapitalWatch’s website on February 4 and reiterated on X on February 9, and it acknowledged that the claim was unsupported by independent verification of a Court of Bordeaux judgment.
AppLovin’s response, released the same day, stated that the allegations were baseless and that the company had already taken legal action by sending a cease‑and‑desist letter to CapitalWatch, labeling the report “defamatory and baseless.” The company reaffirmed its commitment to compliance and transparency.
The retraction removed a significant reputational overhang that had weighed on investor sentiment. Analysts who had previously expressed caution now reiterated buy ratings, citing the company’s strong fundamentals and the removal of the short‑seller’s negative narrative.
AppLovin’s Q3 2025 results, released earlier in the year, showed revenue of $1.405 billion, up 68% year‑over‑year, and adjusted EBITDA of $1.158 billion, reflecting an 82% margin. The growth was driven by robust demand for its AI‑powered advertising platform, Axon, and expanding e‑commerce partnerships, while the high margin was supported by a favorable mix of high‑margin AI contracts and operational leverage.
Management emphasized that the company remains focused on scaling its AI platform beyond gaming into e‑commerce, and that the upcoming Q4 2025 earnings, expected on February 11, will provide further insight into the trajectory of revenue and profitability. The company’s legal stance and the swift retraction signal confidence in its governance and risk management.
Overall, the event underscores AppLovin’s resilience against short‑seller attacks and highlights the importance of its AI and e‑commerce strategy in sustaining growth and profitability.
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