AppLovin stock tanks on report SEC is investigating company over data-collection practices

Core Viewpoint - AppLovin's shares experienced a significant decline following reports of an SEC investigation into its data-collection practices related to targeted advertising [1][2]. Group 1: SEC Investigation - The SEC is investigating whether AppLovin violated agreements concerning targeted ads, prompted by a whistleblower complaint and multiple short-seller reports [2]. - The investigation has led to a notable drop in AppLovin's stock price [1]. Group 2: Stock Performance - AppLovin's stock surged approximately 80% in 2025, following a remarkable increase of over 700% in 2024, primarily driven by advancements in its artificial intelligence technology for ad targeting [3]. - The company was recently added to the S&P 500 index, replacing MarketAxess Holdings, despite efforts from short-sellers to prevent this inclusion [3]. Group 3: Market Reactions - In March, Fuzzy Panda Research recommended against AppLovin's inclusion in the S&P 500, which reflects ongoing skepticism from certain market analysts [4]. - AppLovin's shares saw a 15% drop in December when the S&P 500 committee chose Workday instead [4].