"AppLovin Corporation (NASDAQ: APP) has seen a decline of nearly 20% in its market value within just ten days, erasing over $40 billion in market capitalization - one of the most significant short-term declines among major U.S. software companies this year. This selloff has prompted investors to question whether this is merely a sharp correction of an overheated stock or the beginning of a more profound reckoning for one of the fastest-growing entities in mobile advertising."
"The decline was initiated by reports stating that the U.S. Securities and Exchange Commission (SEC) has launched an investigation into AppLovin's data collection methods. As per , regulators are investigating whether the company breached privacy or platform regulations in how it collected and utilized user data for ad targeting. This revelation was sufficient to cause shares to plunge from approximately $719 to nearly $600, marking their worst week since the tech crash of 2022."
AppLovin's market value fell nearly 20% in ten days, erasing over $40 billion in market capitalization. The selloff followed reports that the SEC launched an investigation into AppLovin's data collection methods, examining potential breaches of privacy or platform regulations in ad-targeting practices. Shares dropped from about $719 to nearly $600, marking the company's worst week since the 2022 tech crash. Prior to the decline, quarterly revenue surged 54% year-on-year to $1.65 billion, and an adjusted figure rose to $910 million, driven by strong demand for the MAX ad platform. The High Quality Portfolio is presented as a lower-volatility alternative, having outperformed benchmarks with over 105% returns.
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