AppLovin Shares Plunge 8.6% as SEC Confirms Ongoing Data Probe
AppLovin shares slid 8.6% on Monday after the SEC confirmed its probe into the company’s data-collection practices remains active and ongoing, raising regulatory risk. The retracement follows speculative gains from ChatGPT ad-monetization talk and comes as AppLovin invests in a next-generation social platform targeting Meta, TikTok and Snap competitors.
1. SEC Investigation Update
The SEC confirmed its probe into AppLovin’s data-collection practices remains active and ongoing, examining potential breaches of platform partners’ rules following a whistleblower complaint and short-seller reports. No formal accusations have been made against the company or its executives at this stage.
2. Stock Pullback & Technical Trends
Shares fell 8.6% on Monday, trading 14.1% below the 20-day simple moving average and 34.4% below the 100-day average, signaling a sustained bearish trend. Key support and resistance levels are at $360 and $429 respectively.
3. AI Monetization and Social Platform Plans
AppLovin’s recent rally was fueled by speculation that OpenAI will partner to monetize ChatGPT with its ad tech, while the company has posted roles for developing a next-generation social platform to challenge Meta, TikTok and Snap. These strategic moves underscore its push into media delivery and real-time interaction.
4. Analyst Ratings & Price Targets
Analysts maintain a Buy consensus with an average price target of $708.41. Jefferies lowered its target to $700, Citigroup set it at $710, and UBS raised its projection to $740.