"According to Bloomberg, the SEC probe followed a whistleblower's complaint and several short seller reports issued earlier this year. Dessouky thinks that the selloff following the news presents "a particularly attractive buying opportunity based on what we know today." The 5-star analyst contends that the absence of an SEC or company disclosure and no Form 8-K filing suggest that the probe may still be "an informal, information gathering exercise," rather than a formal investigation."
"The analyst believes that AppLovin is reshaping the mobile gaming space into an effective e-commerce channel for merchants. He expects the company to deliver revenue growth of 65% in 2026, driven by e-commerce and mobile gaming advertisers. Moreover, Dessouky expects APP's 2026 EBITDA (earnings before interest, taxes, depreciation, and amortization) to come in at $7.5 billion, 36% above the consensus estimate."
An SEC probe is targeting AppLovin's data collection practices after a whistleblower complaint and previous short-seller reports, prompting a share price decline. Bank of America analyst Omar Dessouky maintained a Buy rating and a $860 price target, viewing the pullback as a buying opportunity. Dessouky believes the probe may be informal due to lack of regulatory or company disclosures. He projects AppLovin will deliver 65% revenue growth in 2026 driven by e-commerce and mobile gaming advertisers, and forecasts 2026 EBITDA of $7.5 billion, about 36% above consensus estimates. Q3 results could catalyze the stock via e-commerce advertiser expansion and rollout timing.
Read at TipRanks Financial
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