- The regulator declined to share correspondence between staffers.
- Since October, SEC has investigated allegations that AppLovin has been promoting more targeted advertising to consumers, which has allegedly violated platform partners’ service agreements.
- Convequity in a social media post said there is potential that Applovin stock may drop further and people can wait to invest in the stock at a lower point.
Applovin is still reportedly facing a probe from the Securities and Exchange Commission that started in October last year.
The regulator stated to Bloomberg News that an “investigation involving AppLovin is still active and ongoing” and the release of any records could interfere with the enforcement proceedings. The SEC didn’t specify the subject or scope of the investigation in its response.
The regulator declined to share correspondence between staffers referencing AppLovin because it might “cause harm to the ongoing and active enforcement investigation,” the agency said in a letter to Bloomberg News.
At the time of writing, stock was up 4.4%.
SEC Probe
Bloomberg News in October had reported that the SEC has investigated allegations that AppLovin has been promoting more targeted advertising to consumers, which has allegedly violated platform partners’ service agreements.
As per the report, SEC was responding to a complaint filed by a whistleblower and multiple short-seller reports published in the past several months.
Applovin at the time denied the allegations.
Convequity’s Take On Stock
Convequity in a social media post said there is potential that Applovin stock may drop further and people can wait to invest in the stock at a lower point.
“Investing in $APP means you are investing in a company before crush and you believe it is going to survive the crush and having a rebirth again. IMO better to wait and invest after there is a total crush. The power and potential of 3D real-time game engine and agent isn't yet to be fully understood by the public at large yet,” the post said.
"Applovin identified an area where strong DLRM players like Google and Meta didn't play" -- which is the modern ads monetization, Convequity noted.
How Did Stocktwits Users React?
Retail sentiment around APP trended in ‘bullish’ territory amid ‘normal’ message volume.
Shares in the company have fallen 12% over the past year.
For updates and corrections, email newsroom[at]stocktwits[dot]com.