AppLovin $APP
The Bear Cave • Published February 20, 2025 • Mobile Ad Network Under Investigation
CORE RESEARCH THESIS
AppLovin's rapid rise is fueled by low-quality revenue growth from ads that are deceptive, predatory, and at times unreadable or unclickable.
The Bear Cave spent dozens of hours playing mobile games in the AppLovin ecosystem to investigate. The results were surprising.
COMPANY OVERVIEW
CONCERNS IDENTIFIED
Based on The Bear Cave's investigation
- Deceptive Advertising — Ads that mislead users
- Predatory Practices — Targeting vulnerable mobile game players
- Unreadable/Unclickable Ads — Low-quality ad inventory
- Potential Ad Fraud — Allegations explored in full report
AppLovin's ad network reaches over 1 billion players daily through mobile games. Investors believe the business has extremely high margins, low marginal costs, and can serve as a growing royalty on mobile gaming.
The Bear Cave sees things differently.
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The Bear Cave's Analysis
The Bear Cave believes AppLovin's meteoric ~750% stock rise to a $166B valuation at ~35x revenue may be built on low-quality, deceptive, and potentially fraudulent advertising practices. The full report details specific findings from extensive firsthand investigation.
Published February 20, 2025
This is a research report, not a short position disclosure. Full investigation available to subscribers.