AppLovin (APP) Stock Plunges As SEC Probes Data Practices: Report

AppLovin Corp (NASDAQ:APP) slumped Monday afternoon after Bloomberg reported the SEC is probing the mobile ad-tech firm's data-collection practices, including possible breaches of partners' service agreements for ad targeting, according to people familiar with the matter.

APP stock is encountering selling pressure. Get the scoop here.

What To Know: Shares fell as much as 19% during Monday’s regular session.

“Generally, we do not comment on the existence or non-existence of any potential regulatory matters. That said, as a global public company, we regularly engage with regulators and if we get inquiries we address them in the ordinary course. Material developments, if any, would be disclosed through the appropriate public channels,” said an AppLovin spokesperson to Benzinga.

The review by the agency's cyber and emerging-tech unit follows a whistleblower complaint and short-seller reports alleging unauthorized "fingerprinting" to track users across apps, conduct restricted by Apple and, until February, by Google.

Per Bloomberg, AppLovin denies creating alternative device identifiers and says it regularly engages with regulators. Bloomberg on Monday noted the SEC declined to comment.

Read Also: Muddy Waters Doubles Down On AppLovin In New Short Report

Why Investors Sold: An SEC probe heightens enforcement risk that could bring fines or mandated changes, threatening precision in AppLovin's targeting engine and ROI.

It also puts platform relationships (Meta Platforms, Amazon, Google) at risk. Any limits those partners impose could curb data access, compress take-rates and slow growth. After a 70% year-to-date rally and S&P 500 addition, Monday’s report could lead to a de-rating as uncertainty rises.

How To Buy APP Stock

By now, you're likely curious about how to participate in the market for AppLovin — be it to purchase shares, or even attempt to bet against the company.

Buying shares is typically done through a brokerage account. You can find a list of possible trading platforms here. Many will allow you to buy “fractional shares,” which allows you to own portions of stock without buying an entire share.

If you're looking to bet against a company, the process is more complex. You'll need access to an options trading platform or a broker who will allow you to “go short” a share of stock by lending you the shares to sell. The process of shorting a stock can be found at this resource. Otherwise, if your broker allows you to trade options, you can either buy a put option or sell a call option at a strike price above where shares are currently trading — either way, it allows you to profit from the share price decline.

APP Price Action: AppLovin shares closed Monday’s session lower by 14.03% at $587, according to Benzinga Pro.

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