Why AppLovin Stock Tumbled by 14% Today
Key Points
A media report stated the company is being probed by the SEC.
The securities regulator was apparently responding to a whistleblower complaint and several short-seller reports.
- 10 stocks we like better than AppLovin ›
AppLovin (NASDAQ: APP) stock took quite a fall in late-session action on the market Monday. Investors were clearly spooked by a media report that a top regulator was looking into certain business practices of the mobile marketing specialist. That sudden slide saw the company's shares fall 14% in value, contrasting quite poorly with the 0.4% gain of the S&P 500 index on Monday.
The wrong kind of attention
Near market close Monday, Bloomberg reported that AppLovin has been the subject of a probe by the Securities and Exchange Commission (SEC).
Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Continue »
Image source: Getty Images.
According to unidentified "people familiar with the matter," the financial news agency wrote that the probe is in response to a whistleblower complaint filed earlier this year, plus a series of short seller reports on AppLovin disseminated recently.
Specifically, the article stated, the SEC's effort is focused on AppLovin's data collection practices. Bloomberg's sources said that the company hasn't (yet) been accused of wrongdoing, although it did not seem to be aware of what stage the regulator's probe might be in.
Mum's the word for now
The SEC declined to comment on the matter, citing an inability to respond to press queries due to the federal government shutdown. AppLovin also effectively refused, stating that "we regularly engage with regulators and if we get inquiries we address them in the ordinary course."
Although at this point any investigation must be considered speculative, this is unquestionably a development worth watching for AppLovin investors and observers. Given that, it wouldn't be wise to invest in the company on that share-price swoon.
Should you invest $1,000 in AppLovin right now?
Before you buy stock in AppLovin, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and AppLovin wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $621,976!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,150,085!*
Now, it’s worth noting Stock Advisor’s total average return is 1,058% — a market-crushing outperformance compared to 191% for the S&P 500. Don’t miss out on the latest top 10 list, available when you join Stock Advisor.
See the 10 stocks »
*Stock Advisor returns as of September 29, 2025
Eric Volkman has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
Recommended Articles
