AppLovin Probed by SEC Over Its Data-Collection Practices

Core Viewpoint - AppLovin is under investigation by the SEC regarding its data-collection practices, leading to a significant drop in its stock price [1][4]. Group 1: SEC Investigation - The SEC is probing allegations that AppLovin violated service agreements with platform partners to enhance targeted advertising [2][5]. - The investigation was prompted by a whistleblower complaint and multiple short-seller reports [5]. - The SEC has not accused AppLovin or its officials of any wrongdoing, and the status of the review remains unclear [5]. Group 2: Stock Performance - AppLovin's shares fell 14%, marking the largest decline since April, with an additional 3% drop in premarket trading [4]. - Despite the recent decline, AppLovin's market valuation has nearly doubled this year, exceeding $230 billion [6]. Group 3: Company Background - AppLovin assists mobile app developers in user acquisition and advertising sales, and was added to the S&P 500 Index in September [6]. - The company has faced criticism from short-sellers for allegedly misusing its position in the mobile advertising ecosystem to track users without authorization [7].