AppLovin (APP) Falls Hard on New Round of Probe

Core Insights - AppLovin Corp. (NASDAQ: APP) experienced a significant decline in share prices, dropping by 5.57% to $565.94 amid investor concerns over a new investigation into consumer data practices [1][4]. Investigation Details - Multiple state attorneys general from Delaware, Oregon, and Connecticut are conducting preliminary investigations into AppLovin, which reportedly began in March and continued through the summer [2]. - The Securities and Exchange Commission (SEC) has also initiated an investigation into AppLovin's data collection practices, announced earlier this month [3]. - Allegations against AppLovin include potential violations of service agreements with platform partners related to targeted advertising [4]. Market Sentiment - Investor sentiment has been negatively impacted by the ongoing investigations, contributing to the stock's poor performance [1]. - Despite the challenges faced by AppLovin, there is a belief that other AI stocks may offer better investment opportunities with higher returns and lower risks [5].