The Applovin logo was placed on a smartphone in New York, USA on Wednesday, February 26, 2025.
Gabby Jones | Bloomberg | Getty Images
Applovin Stocks tumbled on Monday after Bloomberg reported that the SEC is investigating mobile advertising companies over data collection practices.
The agency is considering whether the company is in violation of a contract to push targeted advertising to consumers, Bloomberg reported, citing people familiar with the matter. The report added that the SEC is responding to a whistleblower complaint filed with multiple short seller reports this year, and that neither the company nor its officials have been accused of wrongdoing.
An Applovin spokesperson said the company typically does not comment on the “existence or existence” of regulatory issues.
“That said, as a global public company, we engage regularly with regulators and when we receive questions, we address them in the normal course,” the spokesperson said in a statement. “Development of the materials, if any, will be disclosed through appropriate public channels.”
Shares fell 14% in regular trading after the report. This landed just before the market closed. It was further reduced by 5% in extended trading.
Applovin stock has been on a tear, up about 80% this year after rising over 700% in 2024. Surge is powered by the company’s artificial intelligence technology, which can provide brands with better ad targeting capabilities.
Last month, Applovin was added to the S&P 500, replacing MarketAxess Holdings at the same time. robin hood Joined Index on behalf of Caesars Entertainment.
Applovin moved to Benchmark despite efforts by short sellers to lock it out.
In March, Fuzzy Panda Research advised the large US Index Committee to prevent Applovin from becoming a member. Applovin shares fell 15% in December when the committee selected Labor Day to join the S&P 500.
Three prominent short-selling companies, including Fuzzy Panda, recently condemned Applovin. The latest one was Muddy Waters Research. In March, it said the company’s advertising tactics “violate app store terms” by “unacceptably extracting unique identities from Meta, Snap, Tiktok, and Tiktok.” redditIn doing so, Applovin funnels targeted ads to users without their consent, Muddy Waters said.
Fuzzy Panda and Culper Research reported last month, aiming for Applovin’s Axon software, driving revenue growth and inventory surge. Shares were down 12% on February 26, a short reporting day.
After these reports were published, Applovin CEO Adam Foroughi wrote a blog post defending his company’s technology and practices and targeting short sellers looking to profit from Applovin’s decline.
Watch: Applovin CEO on company’s bid to buy TikTok
