AppLovin Under Regulatory Probe
"Let's go to App Leven. What's going on? >> Yes, the keep it easy for us. The ticker is a App. Uh shares are down as much as more than 7%. Um now they paired a bit up down about 3.8%. This is after the New York Post reported that the state regulators have reached out to multiple short sellers in a possible preliminary probe on the company here. So the states involved in this concern are Delaware, Oregon, Connecticut. This all according to the report. But if you do look back uh earlier this month in early October, we had the SEC that was probing the company in terms of its data collection practices. So lots of heat right now on this company. Uh shares are up though 78% so far this year."
The speaker discusses regulatory pressures on AppLovin, noting that shares have dropped over 7% amidst reports of state regulators contacting short sellers. This follows an earlier SEC probe into the company’s data collection practices. Despite these headwinds, the stock has delivered strong year-to-date gains of 78%, reflecting mixed sentiment.
Applovin Falls 5.6% Amid Regulatory Probe
"And finally, the worst performer in the S&P 500 though was Apploving down 5.6%. Shares fell after the New York Post reported that state regulators have reached out to multiple short sellers in a possible preliminary probe for the mobile advertising company. The states include Delaware, Oregon, and Connecticut. The report comes after news earlier this month that the SEC has been probing Apploving's data collection practices."
The commentary on Applovin is notably bearish, as the stock fell by 5.6% following regulatory scrutiny. The mention of outreach to short sellers and ongoing SEC probes signals heightened risks associated with its practices.
Forced Buying Opportunity in AppLovin (APP) via S&P 500 Inclusion
"AppLovin ticker APP shares up more than 11 percent. Bloomberg Intelligence is forecasting its third quarter sales guidance to be between 10 to 12 percent growth, significantly higher than the consensus estimate of 8 percent. With its S&P 500 index inclusion, passive funds will likely be forced to purchase the stock."
The podcast highlights AppLovin (APP) as a tradeable opportunity due to its recent S&P 500 inclusion, which will likely compel passive funds to buy the stock. Coupled with stronger than expected Q3 guidance (10-12% growth vs 8% consensus) and positive product developments, this creates a short-term bullish scenario for momentum investors.