We recently published 10 Stocks With Massive Losses; AI Stocks Not Spared. AppLovin Corp. (NASDAQ:APP) is one of the worst performers on Monday.
AppLovin saw its share prices decline by 5.57 percent on Monday to finish at $565.94 apiece as investor sentiment was dampened by news that it is facing a new round of investigation, this time by multiple state attorneys general, over consumer data concerns.
A report by the New York Post over the weekend, citing unnamed sources, said that state regulators from Delaware, Oregon, and Connecticut have reached out to multiple short sellers as part of their preliminary investigations into AppLovin Corp. (NASDAQ:APP).
The probe apparently began in March and continued through the summer.
This followed the Securities and Exchange Commission’s own investigation of AppLovin Corp. (NASDAQ:APP), which was announced earlier this month, to similarly look into its data collection practices.
AppLovin (APP) Falls Hard on New Round of Probe
According to an earlier report by Bloomberg, the SEC was looking into allegations that the listed firm violated service agreements with its platform partners to deliver more targeted advertising to consumers.
For its part, AppLovin Corp. (NASDAQ:APP) said it engaged a law firm to investigate the allegations.
While we acknowledge the potential of APP as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the best short-term AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.