AppLovin stock: why SEC probe shouldn’t concern long-term investors

AppLovin Corp APP tumbled rather significantly late on Monday following reports the SEC is probing its advertising practices – particularly around its AI-enabled AXON platform.

The scrutiny follows short seller allegations of unauthorised data collection and deceptive targeting methods – and casts a shadow over APP’s near-term growth narrative while raising questions about compliance risks.

For long-term investors, though, it may just be an opportunity to , “but AppLovin has exploded,” now commanding roughly $15 billion in gross ad spend – nearly half the mobile gaming market.

The failed merger allowed AppLovin to stay nimble, innovate faster, and expand its TAM into e-commerce.

What once looked like missed opportunity now appears to be a strategic win, reinforcing AppLovin stock’s edge in a rapidly evolving ad tech landscape.