:max_bytes(150000):strip_icc()/GettyImages-2238737937-f4a8e26709664607ab82f730e040690c.jpg "AppLovin’s Hot Stock Dropped 14% Monday. Here’s Why.")
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Key Takeaways
- AppLovin shares had more than doubled this year through Friday’s close. Today a press report cut into those gains substantially.
- The SEC is investigating the company, among the newest members of the S&P 500, after a whistleblower’s report, according to Bloomberg.
Shares of AppLovin tumbled Monday, a stumble in what has largely been a powerful upward run for the stock in 2025.
AppLovin (APP) finished the day down 14%, with most of that following an afternoon report from Bloomberg that, citing people familiar with the matter, said the Securities and Exchange Commission was investigating the mobile app monetization company’s data-collection practices after a whistleblower’s complaint.
Why This Matters to Investors
In the span of just a few hours, AppLovin investors were both digesting an upbeat report from a Wall Street analyst and trying to unpack a double-digit swoon that followed a report indicating a government investigation into the company. Today’s drop was an unexpected surprise for investors who’ve feasted on good news this year.
An AppLovin spokesperson in a statement said that “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.” The SEC did not provide a statement, citing the ongoing government shutdown.
The news wasn’t well-received by investors, who through Friday’s close seen the shares more than double this year and in September cheered the company’s addition to the S&P 500 months after short-sellers had set their sights on the stock. The shares finished last week near $683; they ended today at $587, reflecting a slip to prices last seen roughly a month ago.
Analysts at Wedbush, meanwhile, had earlier today lifted their price target on the shares by $20 to $745, saying that the company’s “phenomenal growth will continue for the foreseeable future, with a staggering profit margin.” They’re far from the only Wall Street bulls out there, to be sure: The average price target, as tracked by Visible Alpha, is just under $708.
