"AppLovin Corporation ( APP) experienced a dramatic sell-off on Monday, October 6, 2025, after Bloomberg reported that the Securities and Exchange Commission has been investigating the mobile advertising company over its data-collection practices. The stock plummeted 14% during regular trading and continued falling another 3.28% in pre-market hours on Tuesday to $567.75 as of 6:16 AM EDT. The investigation centers on allegations that AppLovin may have violated service agreements with platform partners to deliver more targeted advertising to consumers,"
"According to Bloomberg's report, the SEC investigation is responding to a whistleblower complaint filed earlier this year, along with multiple short-seller reports targeting the company. The agency is examining whether AppLovin systematically violated app store terms of service by extracting proprietary user identification data from major platforms including Meta, Snap, TikTok, Reddit, and Google without proper consent. This practice allegedly enabled AppLovin to funnel highly targeted advertisements to users who had not authorized such data collection."
AppLovin experienced a steep stock decline after news of an SEC probe into its data-collection practices, with shares falling 14% in regular trading and another 3.28% in pre-market to $567.75. The SEC is examining whether AppLovin extracted proprietary user identification data from major platforms including Meta, Snap, TikTok, Reddit, and Google without proper consent, potentially enabling highly targeted advertising. The inquiry follows a whistleblower complaint and several short-seller reports. AppLovin said it regularly engages with regulators, typically does not comment on the existence of inquiries, and will disclose any material developments through appropriate channels.
Read at TalkMarkets
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