(Bloomberg) — Two short sellers released reports on AppLovin Corp, touching off a rout of as much as 21% in shares of 2024’s best performing technology stock.

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AppLovin, which provides marketing services to app developers, fell to about $312 intraday, the lowest level since November and the worst intraday drop since 2022, as investors unwound some of the blistering rally that saw shares rise eight fold last year. The stock was briefly halted for a volatility pause.

Fuzzy Panda and Culper Research both published short reports against the company, just days after The Bear Cave issued its own cautious report.

AppLovin did not immediately respond to Bloomberg News requests for comment.

The reports effectively allege that AppLovin misrepresents the benefits of its AI advertising platform and instead “force-feeds” app installations onto phones as a way to drive up revenue.

Last year’s rally was concentrated in the fourth quarter, amid excitement over the company’s AI-powered advertising engine. It coincided with a rotation from semiconductor stocks into AI-linked software companies. AppLovin also reported earnings results that beat analyst estimates, and was added to the Nasdaq 100 Index, replacing Dollar Tree Inc.

Wall Street is largely positive on the company, which boasts 21 buy ratings, 6 holds and no sells. The average price target of $542.59 is more than 40% higher than where shares traded at Tuesday’s close.

(Updates stock move after market open, adds third, fourth paragraphs)

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