AppLovin rebounds as Oppenheimer doesn't expect much from SEC inquiry

[Group Of Colleagues Listening To Presentation Together]
Tom Werner

* AppLovin (NASDAQ:APP [https://seekingalpha.com/symbol/APP]) erased part [https://seekingalpha.com/news/4502119-applovin-shares-tumble-following-sec-probe-report] of Monday's losses and rose 6.7% on Tuesday as Oppenheimer said there is likely to be “more noise,” but it doesn't expect anything to come from the SEC inquiry.
* “Sources in the [Bloomberg] report suggest that the SEC is responding to a whistleblower complaint filed earlier this year, short-seller reports published in the past months,” Oppenheimer analyst Martin Yang wrote in a note to clients. “By reviewing the SEC's FOIA logs, we find four more open requests on APP, all made by Bloomberg. We believe the recent report, alongside open FOIA requests, and potentially more short seller reports could result in more volatility in the stock [near-term]. However, our [long-term] bullish thesis is intact.”
* Following yesterday's report [https://seekingalpha.com/news/4502119-applovin-shares-tumble-following-sec-probe-report], AppLovin said it “regularly” engages with regulators and addresses inquiries in ordinary course. If there were material developments, they would be disclosed in the “appropriate public channels.” Since the company is in a quiet period, Yang said he interpreted the response “as a non-denial denial.”
* Yang has an Outperform rating and $740 price target on AppLovin.

MORE ON APPLOVIN

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* AppLovin: The Party Is Nearing Its End (Rating Downgrade) [https://seekingalpha.com/article/4827782-applovin-the-party-is-nearing-its-end-rating-downgrade]
* AppLovin: Execution Appears Flawless, Valuation Is Not [https://seekingalpha.com/article/4827010-applovin-execution-appears-flawless-valuation-is-not]
* Biggest stock movers Tuesday: TMQ, STZ, and more [https://seekingalpha.com/news/4502213-biggest-stock-movers-tuesday-tmq-stz-and-more]
* AppLovin shares tumble following SEC probe report [https://seekingalpha.com/news/4502119-applovin-shares-tumble-following-sec-probe-report]