AppLovin Shares Sink 28% on Soft Q3 Outlook as SEC Closes Probe
Updated
Updated · Yahoo Finance · Aug 6
AppLovin Shares Sink 28% on Soft Q3 Outlook as SEC Closes Probe
3 articles · Updated · Yahoo Finance · Aug 6
Summary
AppLovin shares fell as much as 28% after hours, later trimming the drop to 17%, after third-quarter guidance missed Wall Street expectations despite news that the SEC ended its inquiry without action.
Q3 revenue guidance of $2.055 billion to $2.085 billion came in light at the midpoint versus a $2.08 billion consensus, while adjusted core profit guidance of $1.71 billion to $1.74 billion trailed a $1.75 billion estimate.
Q2 revenue rose 53% to $1.924 billion but missed the roughly $1.94 billion consensus, as CEO Adam Foroughi said slower-than-usual AI model improvements in gaming ads and higher computing spending weighed on results.
The SEC probe, first reported in late 2025, had examined AppLovin's data-collection practices after a whistleblower complaint and short-seller reports alleging unauthorized fingerprinting to target ads.