AppLovin $APP ( ▲ 13.94% ) shares jumped Monday after research outlet CapitalWatch issued a correction and apology tied to parts of its earlier negative report on the company. The stock had been under pressure since January, when the firm published a scathing critique that included serious allegations involving one of AppLovin’s largest shareholders.
Now, at least part of that narrative is being walked back.
Allegations Pulled, Questions Remain
Following what it called a rigorous internal review, CapitalWatch said claims linking shareholder Hao Tang to money laundering were based on a legal document that had been misinterpreted. The outlet acknowledged that certain connections outlined in the original report were inaccurate and did not meet its publication standards.
That said, CapitalWatch did not fully reverse course. It maintained that broader concerns about AppLovin’s financial structures and transactions still deserve scrutiny, even if it no longer ties those issues directly and exclusively to Tang.
Market Relief, Not a Full Reset
Investors appeared to focus on the retraction of the most serious personal allegations, which helped lift shares after weeks of pressure. AppLovin had strongly denied the initial report, calling it false and misleading.
The episode highlights how sensitive high-growth ad tech and software names can be to headline risk, especially in a market already jittery about competitive threats from AI-driven tools and new platforms.
For now, the correction has eased some immediate concerns, but the debate over AppLovin’s business and financial structure is far from settled.