AppLovin Stock Up 85%. Learn Whether To Bet Against $APP
1. AppLovin's stock surged 85% in 2025 but fell 14% on Monday.
FAQ
Why Bearish?
The SEC investigation could lead to regulatory fines or changes in operations, negatively impacting growth potential. Historically, regulatory scrutiny has led to significant stock downturns, as seen with various tech companies facing similar investigations.
How important is it?
The SEC investigation directly threatens AppLovin's operational model and market perception, which are critical drivers of stock value. Given that the company's growth narrative hinges on robust data practices, any discrediting of these could severely impair its valuation.
Why Short Term?
The immediate effects of the SEC investigation may cause volatility until clarity is provided about potential fines or sanctions. Previous investigations have often resulted in rapid share price movements followed by a recovery, suggesting short-term impacts may be more pronounced.