Short reports targeting AppLovin ‘misguided,’ says Wedbush

Wedbush notes that AppLovin (APP) has been “blasted by a series of short reports” this morning, but the firm thinks the reports are “misguided” and argues that if AppLovin is, in fact, committing fraud, the firm finds it “highly unlikely that it has yet to face a legal challenge from former employees, Facebook, advertisers or competitors.” The firm also finds it “inconceivable that no regulators, attorney generals nor legal authorities have yet begun an investigation,” while noting that the company’s financial reports are audited and the auditors have not raised any fraud issues. Wedbush maintains an Outperform rating and $620 price target on AppLovin shares.