AppLovin Shares Plummet 14% on Reported SEC Probe After Soaring 80% in 2023
AppLovin, a mobile gaming company, has seen its shares soar over 80% this year, backed by positive ratings from financial firms. However, the company's stock plummeted 14% after hours on Monday following reports of a potential Securities and Exchange Commission (SEC) probe into its data collection practices.
Despite the recent dip, AppLovin's shares have been performing exceptionally well in 2023, driven by positive assessments from Wedbush, Piper Sandler, and UBS. Yet, the company has faced scrutiny this year with multiple short reports issued by firms such as Fuzzy Panda and Muddy Waters. Notably, the most recent critical reports were published by Fuzzy Panda and Muddy Waters.
The SEC is reportedly investigating allegations that AppLovin violated service agreements to send more targeted advertising to consumers. It is important to note that AppLovin has not been accused of any violations by the SEC, as per a Bloomberg report.
AppLovin's shares have experienced significant volatility this year, with a substantial increase followed by a substantial decrease due to the potential SEC probe. While the company has received positive ratings from several financial firms, it has also faced criticism from short-sellers. The outcome of the SEC's investigation, if any, will likely have a significant impact on AppLovin's stock performance.
