Core Insights - Investing in companies facing temporary challenges can yield significant returns if the company rebounds [1][2] - AppLovin, an adtech company, has faced scrutiny from short-sellers and regulatory bodies, leading to a decline in its stock price [3][5] Company Overview - AppLovin has experienced rapid growth in recent years but is currently under pressure due to multiple short-seller reports questioning its data collection practices [3][5] - The stock has decreased by 15% in the past month and is down 26% from its 52-week high, despite being up over 70% year-to-date [3][8] Regulatory Scrutiny - The SEC has initiated an investigation into AppLovin's data collection practices following whistleblower complaints and short-seller allegations [6][8] - There has been an increase in short interest against the company amid these developments, reversing a previous decline [6] Valuation Context - Despite recent challenges, AppLovin's stock has appreciated over 3,000% in the past three years, indicating strong long-term performance [9]