A Securities and Exchange Commission probe involving mobile advertising technology company AppLovin Corp. is “still active and ongoing,” the regulator said Friday. https://t.co/6E9DwBJSmu ...

Group 1 - Software manufacturers, advertising companies, and investment firms are facing a new wave of sell-offs due to investor concerns that advanced AI tools may pose risks to their business [1] - An ETF tracking U.S. software stocks dropped by 4.1%, reaching a new low since April of last year [1] - AppLovin Corp. and Unity Software Inc. experienced significant declines, while Take-Two Interactive Software Inc. fell by 6.6% [1] Group 2 - In Europe, software giant SAP SE saw a decline of 4.4%, marking a two-year low [1] - Relx Plc, which owns data analytics service LexisNexis, dropped to its lowest point since 2022 [1] - Other companies such as Publicis Groupe SA, Rightmove Plc, and EQT AB also experienced further declines [1]

Core Viewpoint - AppLovin Corp. has strongly denied allegations from a short seller regarding its connections to a multibillion-dollar money-laundering network, asserting that the claims about its technology and shareholder base are unfounded [1] Group 1 - The company is facing accusations from a short seller, which it categorically rejects [1] - AppLovin emphasizes that the allegations are baseless and aims to protect its reputation in the market [1] - The firm is committed to transparency and integrity in its operations, countering the negative narrative presented by the short seller [1]

Core Viewpoint - The article discusses the trend of insiders in AI-related companies cashing out significant amounts of stock following the end of lock-up periods, highlighting the wealth generated by the AI boom and the subsequent stock sales by executives and major shareholders [3][4][10]. Group 1: CoreWeave's Stock Sales - CoreWeave executives and board members sold over $1 billion worth of stock after the lock-up period ended in mid-August, with the company's stock price having surged over 250% since its IPO in March [1][4]. - The largest insider seller from CoreWeave was board member Jack Cogen, who sold $477 million worth of stock, followed by co-founder Brannin McBee with $426 million [6][10]. - CoreWeave's largest institutional shareholder, Magnetar Financial LLC, also sold nearly $1.9 billion in shares but retained over 20% of the company's Class A shares post-sale [7]. Group 2: Broader AI Industry Trends - The trend of cashing out is not limited to CoreWeave; seven of the top ten insider sellers in Q3 were from AI-related companies, indicating a broader trend in the industry [4][10]. - Notable sales included Arista Networks CEO Jayshree Ullal, who sold over $861 million in stock, and NVIDIA CEO Jensen Huang, who cashed out over $743 million [10][11]. - Amazon founder Jeff Bezos topped the list of insider sellers in Q3, selling $4.917 billion worth of stock, which was part of a larger plan to fund other ventures [11][12]. Group 3: Other Notable Sellers - The top ten insider sellers also included Frank Slootman from Snowflake, who sold $463 million, and Tony Ressler from Ares Management, who sold $357 million [12][13]. - Other significant sellers included Baiju Bhatt from Robinhood, who sold nearly $300 million, and Brian Armstrong from Coinbase, who sold $268 million for funding scientific research [13].

Core Viewpoint - The AI boom is reshaping market dynamics and creating significant wealth for insiders, who are converting paper gains into real cash [1] Group 1: Insider Selling Trends - CoreWeave insiders sold over $1 billion worth of stock after the IPO lock-up period ended in mid-August [1][2] - In the third quarter, seven of the top ten insider sellers were from companies benefiting from AI [3] - CoreWeave executives led the selling trend, with board member Jack Cogen selling $477 million and co-founder Brannin McBee selling $426 million [4] Group 2: Institutional Selling - CoreWeave's largest institutional shareholder, Magnetar Financial LLC, sold nearly $1.9 billion in shares but still holds over 20% of the company's Class A stock [6] Group 3: Notable Sales in the AI Sector - Arista Networks CEO Jayshree Ullal sold over 6 million shares for $861 million, ranking second among sellers [9] - NVIDIA CEO Jensen Huang sold over $743 million in the third quarter, with total insider sales nearing $1.5 billion for the first three quarters of 2025 [10] Group 4: Other Major Sellers - Amazon founder Jeff Bezos topped the list with $4.917 billion in sales, significantly exceeding other sellers [11] - Other notable sellers included Frank Slootman of Snowflake ($463 million), Tony Ressler of Ares Management ($357 million), and Brian Armstrong of Coinbase ($268 million) [12]

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].

We recently published 11 Stocks Failing to Keep up With The Market. Unity Software Inc. (NYSE:U) is one of the top performers on Tuesday. Unity Software snapped a two-day winning streak on Tuesday, shedding 6.75 percent to close at $40.04 apiece as investors took path from a rating downgrade from an investment firm. In a market note, HSBC revised its recommendation for Unity Software Inc. (NYSE:U) to “hold” from “buy” previously amid valuation concerns, having already jumped by nearly 100 percent year-to ...