AppLovin's Hot Stock Dropped 14% Monday. Here's Why.

Core Insights - AppLovin's shares experienced a significant decline of 14% following reports of a Securities and Exchange Commission (SEC) investigation into the company's data-collection practices after a whistleblower complaint [1][2][6] - Prior to this drop, AppLovin's stock had more than doubled in value throughout the year, reflecting strong investor sentiment and positive market performance [4][6] Company Performance - The stock price fell from approximately $683 at the end of last week to $587, marking a return to levels seen about a month ago [4] - Analysts at Wedbush raised their price target for AppLovin shares by $20 to $745, citing the company's exceptional growth and profit margins [5] Market Reaction - Investors were caught off guard by the sudden drop, especially after a positive report from a Wall Street analyst earlier in the day [2] - The SEC's investigation has raised concerns among investors, contrasting sharply with the company's recent addition to the S&P 500 and the overall positive sentiment surrounding its stock [4][6]