Applovin shares plunged 15% after Fuzzy Panda saying short Applovin, alleging company "stealing" data from Meta.

Fuzzy Panda Research issued a cautious report on AppLovin (APP), an ad-tech company in the mobile gaming space. While its financial performance has turned AppLovin into a “Wall Street darling,” the firm says “no one seems to know what AppLovin does” and that its research discovered that Axon 2.0, a black-box machine-learning algorithm, is the “nexus of a House of Cards” built upon tactics that formers and experts refer to as “Ad Fraud.” We believe AppLovin has pulled every trick in the book.

The firm says it has been told AppLovin is “stealing” data from Meta (META) in their e-commerce push, and that it is exploiting consumers and their data in ways which are clear violations of Google (GOOGL) and Apple’s (AAPL) app store policies.

Fuzzy Panda, which is short AppLovin, says it believes Apple, Google, and Meta all have a vested interest in putting a stop to AppLovin’s “dark ad practices.”