1. AppLovin shares rebounded 4% after a 20% decline on Thursday. 2. The company hired an attorney for an independent investigation of short reports. 3. Three short reports claimed AppLovin engaged in deceptive business practices. 4. AppLovin's CEO committed to defending against perceived market manipulation. 5. Shares rose, but have declined significantly from a February peak.
Despite a recent decline, the hiring of a high-profile attorney indicates AppLovin's commitment to address concerns. Historically, swift action in response to negative reports can stabilize or improve stock prices.
The article discusses key actions AppLovin is taking in response to damaging reports, which could directly affect investor perception. The involvement of a prominent attorney may signal serious intent to defend the company’s reputation.
The immediate response to the short seller reports may create volatility in the near term. Past examples, such as companies who effectively countered allegations, showed stock price recoveries.