AppLovin shares fell 14% on September 6, after a Bloomberg report said the US SEC is probing the company’s data-collection practices.

The probe reportedly stems from a whistleblower complaint and short-seller reports, examining whether AppLovin violated agreements related to targeted ads.

The company said it regularly engages with regulators and would disclose any material developments.

Short-seller groups including Muddy Waters, Fuzzy Panda, and Culper Research have recently criticized AppLovin’s ad practices and software.

The stock dropped another 5% in after-hours trading, extending earlier losses.

Despite this, AppLovin shares have surged about 80% in 2025 after rising more than 700% last year, driven by its AI-powered ad targeting technology.

🔗 Source: CNBC