Why AppLovin Stock Tumbled by 14% Today

AppLovin (APP) stock dropped sharply on Monday after news reports surfaced that a key regulator was investigating the mobile marketing company’s business practices. Shares fell 14%, a significant contrast to the 0.4% increase seen in the S&P 500 index that same day.

The wrong kind of attention

Just before the stock market closed on Monday, Bloomberg News reported that the Securities and Exchange Commission (SEC) is investigating AppLovin.

The news agency reported, citing sources close to the investigation, that the probe was launched following a whistleblower complaint from earlier this year and recent reports from investors who bet against AppLovin.

The article reported that the SEC is investigating how AppLovin collects data. According to sources at Bloomberg, the company hasn’t been accused of any wrongdoing, but they weren’t sure how far along the investigation was.

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Mum’s the word for now

Look, I’ve been in this game a long time, and when you see silence from the SEC, especially during a shutdown, it usually means they’re playing things close to the vest. They wouldn’t even confirm or deny anything, which isn’t surprising given the government was closed. AppLovin’s response was the typical corporate brush-off – they said they talk to regulators all the time and handle things as usual. Basically, everyone’s being tight-lipped, and it doesn’t tell me much beyond that.

While it’s still too early to know for sure, this situation is definitely something AppLovin investors and those following the company should pay attention to. Because of this uncertainty, it’s probably not a good idea to buy the stock just because the price has dropped.

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2025-10-07 01:58