AppLovin stock price turns positive today after tanking on rumored SEC probe. Here’s what’s happening

Core Viewpoint - AppLovin's stock has experienced significant volatility following reports of a potential SEC investigation into its data collection practices, which has impacted its previously high-growth trajectory in 2025 [1][4]. Group 1: SEC Investigation - The SEC is reportedly investigating whether AppLovin violated service agreements with platform partners to enhance targeted advertising, prompted by a whistleblower complaint and short-seller reports [2]. - AppLovin has not confirmed or denied the existence of any regulatory matters but stated that it engages with regulators as needed and will disclose material developments through public channels [3]. Group 2: Stock Performance - AppLovin's stock fell over 14% by market close on Monday following the investigation news, but showed some recovery with a slight increase of about 1.11% in premarket trading on Tuesday [4]. - The stock had previously seen substantial growth, rising from approximately $341 per share in early January to over $682 by the end of the previous week, marking an increase of around 100% [5]. Group 3: Recent Achievements - In September, AppLovin was added to the S&P 500 index after a strong earnings report in August, where net income more than doubled to $819.5 million, attributed to its AI-powered technology for targeted advertising in mobile games [6].