AppLovin selloff extends after SEC probe

Published 07/10/2025, 11:40
© Reuters

Investing.com -- AppLovin shares continued to fall Tuesday, down 3.2% in premarket trading, extending Monday’s 14% decline after reports that the Securities and Exchange Commission is investigating the company’s data-collection practices.

Bloomberg, citing people familiar with the matter, reported Monday that the SEC is examining whether AppLovin violated platform partners’ service agreements to deliver more targeted advertising to consumers. 

The investigation is being handled by the agency’s enforcement officials focused on cyber and emerging technologies, according to the report.

The probe is said to center on whether the mobile advertising technology company improperly collected or used data in ways that contradicted its agreements with major platform partners. 

Such actions could raise regulatory compliance concerns at a time when data privacy and digital advertising practices are under growing scrutiny from U.S. authorities.

AppLovin has become a key player in app monetization and marketing through its software platforms that enable developers to target and analyze users across mobile devices. 

The SEC investigation adds to broader regulatory uncertainty surrounding data use in digital advertising, an industry facing heightened oversight in both the U.S. and Europe.

Prior to Monday’s double-digit percentage decline, the stock had been on a tear this year, rising around 80%. Over the last 12 months, AppLovin shares have rallied by over 325%.

 

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