AppLovin

AppLovin’s stock (APP) fell sharply after a Bloomberg report revealed an SEC probe into its data collection for targeted advertising. The investigation, spurred by a whistleblower and short-seller concerns, centers on potential violations of advertising agreements. AppLovin, recently added to the S&P 500, defends its practices, but the news triggered a significant stock decline after a period of substantial growth fueled by its AI-powered AXON engine. Short-sellers have previously criticized AppLovin’s data privacy and ad targeting, alleging violations of app store terms of service.

AppLovin (APP) and Robinhood (HOOD) shares jumped 7% after-hours following S&P Global’s announcement of their inclusion in the S&P 500, effective September 22nd. AppLovin replaces MarketAxess (MKTX), and Robinhood replaces Caesars Entertainment (CZR). This is a significant validation, especially for Robinhood. While index inclusion typically boosts share prices, the long-term benefits for AppLovin, in the competitive mobile advertising sector, and Robinhood, requiring sustained profitability, remain to be seen.