AppLovin Stock Dives Amid Allegations of Undisclosed Chinese Ties

AppLovin shares tumbled after short seller Culper Research accused the mobile technology firm of obscuring significant Chinese ownership ties. The report alleges undisclosed offshore holdings by Chinese national Hao Tang, previously controlling 28% of Class A shares pre-IPO, with lingering 9.8% stakes through shadow entities.

Beyond ownership concerns, Culper highlights questionable financial dealings—including unreported margin loans and advertising contracts with Beijing-based BlueFocus and eClickTech. The firm''s alleged data practices and surveillance links raise national security red flags at a time of heightened Sino-US tech tensions.

CEO Adam Foroughi faces scrutiny for potentially misleading statements about Chinese investor influence during AppLovin''s recent TikTok acquisition attempt. These omissions may violate SEC disclosure requirements, exposing the company to regulatory and geopolitical risks as data privacy concerns escalate globally.