SEC Investigates AppLovin’s Targeted Advertising Platform

Core Viewpoint - AppLovin is under investigation by the SEC regarding potential violations of service agreements related to targeted advertising practices, stemming from a whistleblower complaint and short-seller reports [1][2]. Investigation Details - The extent of the SEC investigation is unclear, and no accusations of wrongdoing have been made against AppLovin or its officials as of the latest reports [2]. - AppLovin has stated that it regularly engages with regulators and will address inquiries as they arise, with any material developments to be disclosed appropriately [3]. Company Response - AppLovin has retained a law firm, led by Alex Spiro, to conduct an independent review and investigation into the short report activity targeting the company [4]. - The company's CEO, Adam Foroughi, emphasized a commitment to defending the company against market manipulation and ensuring that facts are known to protect stakeholders [5]. Financial Performance - In its second quarter results, AppLovin reported a revenue increase of 77% year-over-year, reaching approximately $1.3 billion, with net income up 164% and adjusted EBITDA up 99% [6]. - AppLovin was recently inducted into the S&P 500, highlighting its growing prominence in the market [6]. Market Position - AppLovin has been mentioned as a potential acquirer of TikTok, with analysts suggesting it could be the "next TikTok" due to its AI capabilities in data gathering and targeted advertising [5].