Muddy short seller report targeting AppLovin ‘fails the sniff test,’ says BofA

BofA notes that AppLovin’s (APP) CEO published a blog post on March 27 clarifying several matters in apparent response to Muddy Waters’ March 27 short report, the fifth such report this year targeting the company. After evaluating both sets of arguments and consulting with an independent expert, the firm argues that the report “fails the sniff test” and that de-platforming concerns are “unfounded,” noting that it changed neither its rating nor its forecast. The short report “appears to us to describe business as usual in the online advertising industry,” says the analyst, who adds that AppLovin remains a top pick with a Buy rating and $580 price target