"AppLovin Corp (NASDAQ: APP) slumped Monday afternoon after Bloomberg reported the SEC is probing the mobile ad-tech firm's data-collection practices, including possible breaches of partners' service agreements for ad targeting, according to people familiar with the matter. APP stock is encountering selling pressure. Get the scoop here. What To Know: Shares fell as much as 19% during Monday's regular session. Benzinga has reached out to AppLovin for comment on the report."
"Why Investors Sold: An SEC probe heightens enforcement risk that could bring fines or mandated changes, threatening precision in AppLovin's targeting engine and ROI. It also puts platform relationships ( Meta Platforms, Amazon, Google) at risk. Any limits those partners impose could curb data access, compress take-rates and slow growth. After a 70% year-to-date rally and S&P 500 addition, Monday's report could lead to a de-rating as uncertainty rises."
The SEC is probing AppLovin's data-collection practices, including possible breaches of partners' service agreements for ad targeting. Shares fell as much as 19% during the trading session, creating notable selling pressure after a prior 70% year-to-date rally and S&P 500 inclusion. The agency's cyber and emerging-tech unit opened the review following a whistleblower complaint and short-seller allegations of unauthorized "fingerprinting" to track users across apps, a practice restricted by Apple and, until February, by Google. AppLovin denies creating alternative device identifiers and states it regularly engages with regulators. The probe raises risks of fines, mandated changes, strained platform relationships, reduced data access, compressed take-rates, and slower growth.
Read at Benzinga
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