AppLovin shares tumble following SEC probe report

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AppLovin (NASDAQ:APP [https://seekingalpha.com/symbol/APP]) shares tumbled 14% by the end of market trading on Monday following a report that the U.S. Securities and Exchange Commission was potentially probing the digital ad tech company over its data collection processes.

The commission is looking into allegations AppLovin violated service agreements with platform partners to send more targeted advertising to consumers, Bloomberg [https://www.bloomberg.com/news/articles/2025-10-06/applovin-has-been-probed-by-sec-over-data-collection-practices] reported, citing people familiar with the issue.

"We regularly engage with regulators and if we get inquiries we address them in the ordinary course," an AppLovin spokesperson said to Bloomberg. "Material developments, if any, would be disclosed through the appropriate public channels."

The SEC has not accused AppLovin of committing any violations, the report said.

Seeking Alpha reached out to AppLovin for comment.

AppLovin shares have surged more than 80% year to date. The stock has received a swath of positive ratings from financial firms, including one today by Wedbush [https://seekingalpha.com/news/4502020-applovin-sees-bullish-views-at-wedbush]. Piper Sandler and UBS recently increased their price targets on the stock due in part to Axon Ads Manager, which launched a self-service portal on October 1 in the U.S. and abroad.

However, multiple short reports have also been issued on AppLovin this year, such as those by Fuzzy Panda and Muddy Waters [https://seekingalpha.com/news/4425923-applovin-sinks-after-muddy-waters-short-report].

MORE ON APPLOVIN

* AppLovin Is Positioned To Capitalize On Ad-Tech With AXON [https://seekingalpha.com/article/4827872-applovin-is-positioned-to-capitalize-on-ad-tech-with-axon]
* 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]
* AppLovin sees bullish views at Wedbush [https://seekingalpha.com/news/4502020-applovin-sees-bullish-views-at-wedbush]
* AppLovin jumps as it prepares to launch self-serve tool, analysts raise estimates [https://seekingalpha.com/news/4499909-applovin-jumps-as-it-prepares-to-launch-self-serve-tool-analysts-raise-estimates]