AppLovin Stock Plummets 16% Amid SEC Data Collection Probe
AppLovin (APP) shares tumbled over 16% this week following a Bloomberg report revealing an SEC investigation into alleged illegal data collection practices. The digital advertising giant faces scrutiny over claims it harvested personal data from apps like TikTok to refine ad targeting—a potential violation that could trigger fines and disrupt its revenue model.
Market reaction was swift: shares cratered on the news, staged a partial recovery, then slid again amid broader market weakness. The sell-off interrupts a meteoric 300% rally over the past year, underscoring how regulatory risks can abruptly reset investor sentiment toward high-growth tech names.