AppLovin Corp (NASDAQ:APP) shares are surging on Monday after CapitalWatch issued a public apology and corrected its report on a major shareholder, just days before AppLovin is set to report earnings.
CapitalWatch Retracts Key Allegations
CapitalWatch acknowledged that its report, published last month, contained inaccuracies linking AppLovin shareholder Hao Tang to criminal organizations, CNBC reported. In an apology posted Sunday on X, the firm admitted that its descriptions "asserting direct connections between Mr. Tang and Chen Zhi, Prince Group, Jin Bei Group, Tang Jun and Yang Zhihui were inaccurate and failed to meet our publication standards."
The short seller said it had "erroneously associated" a ruling from the Court of Bordeaux with Tang and has now removed and retracted all passages related to him personally "to prevent the spread of misinformation and protect the legal rights of the parties involved."
AppLovin had demanded a retraction two weeks earlier, calling the report "defamatory and baseless" in a cease‑and‑desist letter.
Previous Defense Now Walked Back
Initially, CapitalWatch stood by its reporting, claiming it was based on a six‑month investigation supported by documents and multiple sources.
CEO Adam Foroughi has repeatedly denied those allegations, saying last year 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."
Analysts Remain Bullish on APP
Analysts have generally shown a bullish trend towards APP recently. Key actions include Needham’s upgrade from hold to buy on Jan. 26, setting a target of $700.00. Prior to this, Evercore ISI Group initiated coverage with an outperform rating and a $835.00 target on Jan. 14. Morgan Stanley maintained an overweight rating, raising the target from $750.00 to $800.00 on Jan. 13.
Earlier in January, Wells Fargo also maintained an overweight rating on APP, increasing the target from $721.00 to $735.00. Going further back, in December, Jefferies maintained a buy rating, setting a target at $860.00, up from the previous $800.00. This series of positive analyst actions indicates a favorable outlook for APP.
APP Price Action: AppLovin shares were up 14.55% at $465.90 at the time of publication on Monday, according to Benzinga Pro.
Image: Piotr Swat/Shutterstock
