Highflying AppLovin (APP) stock plunged on Monday following a report that the Securities and Exchange Commission is investigating the mobile advertising tech company’s data collection practices.
The SEC is looking into allegations that AppLovin violated service agreements with platform partners to send more targeted advertising to consumers, Bloomberg reported, citing people familiar with the matter.
The SEC has not accused AppLovin of committing any violations, the report said.
AppLovin, which helps mobile app developers find users and sell advertising in their apps, has seen its shares surge this year on booming sales and earnings. AppLovin stock hit a record high of 745.61 on Sept. 29.
However, on the stock market today, AppLovin tumbled 14% to close at 587.
Earlier in the day, Wedbush Securities analyst Alicia Reese reiterated her outperform rating on AppLovin stock and raised her price target to 745 from 725.
Reese expressed confidence that AppLovin can continue its heady growth as it rolls out new services for advertisers and app developers.
AppLovin stock is on four IBD lists: IBD 50, Big Cap 20, Leaderboard and Tech Leaders.
Follow Patrick Seitz on X at @IBD_PSeitz for more stories on consumer technology, software and semiconductor stocks.
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