APP: Why the Short Seller Report Gets It Wrong

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Momentum stocks were dragged down by PLTR, with Applovin falling the most due to a new short seller report from The Bear Cave and Unity unwind.

Let's summarize the contents of the short seller report from The Bear Cave:

• Gambling app ads and get-paid-to ads

• One game had 11 ads that switched quickly, making them difficult to read

• Applovin forced many customers to spend $600,000 on META to continue using Applovin's services, leading the author to suspect attribution fraud

• Customers suspect Applovin of fraud because their CAC on Applovin is too good to be true

• The report cites Lauren Balik's short thesis on Applovin

Here's my response on The Bear Cave report: