AppLovin Stock Rebounds After SEC Probe Selloff, Wall Street Maintains Bullish Stance

AppLovin's stock tumbled 14% Monday following reports of an SEC investigation into its data-collection practices for targeted advertising. The mobile advertising tech giant swiftly recovered, gaining 7.6% Tuesday amid strong analyst support.

Oppenheimer's Martin Yang reaffirmed his Buy rating, projecting 17% upside despite the regulatory scrutiny. The probe stems from whistleblower complaints and short-seller reports, with SEC records showing four additional open requests regarding AppLovin's operations.

Year-to-date performance remains stellar at +95%, underscoring Wall Street's confidence in the company's AI-powered advertising solutions and market dominance. The rapid rebound suggests investors view the probe as a temporary hurdle rather than a structural threat.