Core Insights - Applovin's stock experienced a significant decline of 18.31% over four days, with a single-day drop of 14.03% on October 6, due to an investigation by the SEC into its data collection practices [1][2] - The investigation is focused on potential violations in service agreements with platform partners, particularly regarding targeted advertising practices [1] - The investigation was prompted by reports from short-sellers and a whistleblower complaint, raising concerns about the company's use of proprietary identifiers without permission [1] Company Performance - Applovin's stock had previously shown strong performance, rising approximately 80% year-to-date and being included in the S&P 500 index [2] - The ongoing investigation poses a risk of stock re-evaluation, which could impact advertising precision and investment returns, as well as relationships with major platforms [2] Investor Guidance - Experts recommend a cautious approach for investors in the short term, advising close monitoring of the company's communications with regulatory bodies [2] - Despite current challenges, if Applovin can effectively address regulatory issues, its advanced advertising technology may still hold strong market competitiveness, suggesting potential long-term investment opportunities for risk-tolerant investors [2]