Why AppLovin Stock Lost 11% in October

Core Viewpoint - AppLovin has experienced significant volatility in its stock price, particularly in October, due to an SEC investigation into its data collection practices, which has raised concerns among investors [1][3]. Group 1: Stock Performance - AppLovin's stock rebounded towards the end of October, finishing the month down 11% after a sharp decline of nearly 24% earlier in the month [2]. - The stock fell 14% on October 6 following reports of the SEC investigation [3]. Group 2: Analyst Opinions - Citigroup described the sell-off as a buying opportunity, labeling the pullback as "extreme" [4]. - Oppenheimer reiterated a long-term price target of $740 for AppLovin [4]. - Deutsche Bank initiated coverage with a buy rating, highlighting AppLovin's "best-in-class" technology and growth potential in new markets like e-commerce [5]. Group 3: Company Actions - AppLovin shut down a product related to allegations from short-sellers, indicating a proactive response to the concerns raised [4][6]. - The company stated that the Array product was not economically viable and was merely in testing [5]. Group 4: Upcoming Earnings - AppLovin is set to report third-quarter earnings, with analysts expecting a revenue increase of 12% to $1.34 billion and adjusted earnings per share to rise from $1.25 to $2.39 [8].