Reported AppLovin SEC Probe Wipes Out $8.65 Billion For Its Top Executives And Early Investors

Core Insights - AppLovin's shares fell significantly due to an SEC investigation into alleged data-collection violations related to targeted advertising, resulting in a loss of approximately $8.65 billion in wealth for executives and early investors [1][3][4] Investigation Details - The SEC is probing whether AppLovin violated data-sharing rules by using unauthorized tracking tools for targeted ads, following a whistleblower complaint and short-seller reports [3][5] - The investigation could lead to penalties if violations are confirmed, although no wrongdoing has been officially accused yet [5] Financial Impact - AppLovin's stock dropped by 14% in response to the investigation, leading to significant losses for key individuals, including CEO Adam Foroughi, whose net worth decreased by about $3.4 billion [3][4] - Major early investors also experienced substantial losses, with Ling Tang losing $1.7 billion and Hao Tang losing $1.1 billion [4][8] Company Background - AppLovin's market capitalization peaked at $226 billion over the past year but has since declined to approximately $198.8 billion [6] - The company recently joined the S&P 500, despite concerns raised by short-sellers regarding its data practices [6] Stock Performance - Over the past year, AppLovin's stock has increased by 319%, contributing to the rise of three individuals associated with the company into the Forbes 400 [7]