Regulatory Scrutiny Rattles Applovin Shares

Applovin Corporation faces regulatory pressure as the Securities and Exchange Commission launches an investigation into the company’s data collection practices. The mobile advertising technology firm, which had been enjoying a spectacular rally throughout 2024, saw its shares tumble 14% following the news before staging a partial recovery.

The investment community reacted sharply to Monday’s Bloomberg report revealing the SEC’s formal inquiry. According to sources, the investigation was prompted by whistleblower allegations and several short-seller reports questioning Applovin’s compliance with platform partner terms of service. The core allegation suggests the company may have violated partner agreements to enable more targeted advertising capabilities.

Tuesday’s trading session brought a notable rebound, with shares climbing 7.6% as analysts from Citigroup, Oppenheimer,... Read more...