AppLovin Shares Plummet as SEC Investigates Data Collection Practices
AppLovin Corporation (NASDAQ:APP) stock experienced a significant drop today, falling 14.03 percent to close at $587 per share, following the announcement of a formal investigation by the Securities and Exchange Commission (SEC).
The SEC investigation, according to a report from Bloomberg, centers on allegations that AppLovin violated service agreements with its platform partners to enhance targeted advertising. Enforcement officials specializing in cyber and emerging technologies are leading the probe. This scrutiny comes after complaints surfaced earlier this year and reports from several short-selling firms.
In February, Fuzzy Panda Research alleged AppLovin misappropriated data from Meta, while Culper Research accused the company of exploiting application permissions to trigger unauthorized app installations. Muddy Research followed in March, claiming AppLovin collected and structured user IDs from key platform partners. The company has stated it engaged legal counsel to investigate these claims. Investors are closely watching these developments as concerns about data privacy and advertising practices increasingly impact the tech sector; you can learn more about data privacy regulations from the Federal Trade Commission.
AppLovin’s decline marks a fourth consecutive day of losses for the company. For investors seeking alternative opportunities, exploring emerging technologies like artificial intelligence may offer different risk-reward profiles – see our analysis of stocks investors are currently avoiding.
The SEC has not indicated a timeline for the completion of its investigation, and AppLovin has not yet issued a further statement regarding the matter.
We recently published 10 Stocks Investors Are Dumping. AppLovin Corporation (NASDAQ:APP) is one of the worst performers on Monday.
AppLovin dropped for a fourth consecutive day on Monday, losing 14.03 percent to end at $587 apiece after it triggered an investigation by the Securities and Exchange Commission (SEC) to look into its data collection practices.
A report by Bloomberg, citing people privy to the matte,r said that the SEC is looking into allegations that AppLovin Corporation (NASDAQ:APP) violated service agreements with its platform partners to deliver more targeted advertising to consumers.
Bloomberg added that the probe is being handled by the agency’s enforcement officials, focused on cyber and emerging technologies.
The investigation followed a complaint against the company, alongside short-seller reports, earlier this year.
Fuzzy Panda Research claimed in February that AppLovin Corporation (NASDAQ:APP) misappropriated data from Meta, while Culper Research accused the company of exploiting application permissions to enable advertisements that could trigger unauthorized app installations on user devices.
Meanwhile, Muddy Research said in March that AppLovin Corporation (NASDAQ:APP) collected and structured user IDs from key platform partners.
For its part, the listed firm said it engaged a law firm to investigate the allegations.
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Disclosure: None. This article is originally published at Insider Monkey.
