Oppenheimer notes that on October 6, Bloomberg reported that the SEC is investigating AppLovin’s (APP) data-collection practices, according to sources familiar with the matter. The probe centers on allegations that AppLovin violated service agreements with platform partners to enable more targeted consumer advertising. Sources in the report suggest that the SEC is responding to a whistleblower complaint filed earlier this year, short-seller reports published in the past months. By reviewing the SEC’s FOIA logs, the firm finds four more open requests on AppLovin, all made by Bloomberg. Oppenheimer believes the recent report, alongside open FOIA requests, and potentially more short seller reports could result in more volatility in the stock near-term. However, its long-term bullish thesis is intact. The firm has an Outperform rating on the shares with a price target of $740.
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