Shorts Are Returning to AppLovin Even After $3.4 Billion Squeeze

The amount of shares borrowed and sold short this week climbed to the highest level since March, according to S3 Partners LLC. That marks a reversal of the short-covering that unfolded as the stock more than doubled from its low for the year in April. The latest leg up, which pushed the shares’ gain for 2025 to more than 75%, was driven by S&P Dow Jones Indices’ decision to add the company to the S&P 500. While being included in the index will drive buying by passive mutual funds and ETFs, the announcement also removes an important short-term driver of the share price.