AppLovin Stock Plunges 28% After-Hours on Q3 Guidance Miss; SEC Probe Ends

According to AppLovin's latest earnings report, the company's shares plunged as much as 28% in after-hours trading on Wednesday, paring to a 17% decline after the advertising technology firm issued third-quarter guidance of $2.055–2.085 billion, below Wall Street estimates of $2.08 billion.

APP reported Q2 revenue of $1.924 billion, slightly missing the $1.94 billion consensus. CEO Adam Foroughi attributed the shortfall to slower-than-expected AI model improvements in the core gaming advertising business and higher computing costs to train improved models. CFO Matt Stumpf announced that the SEC concluded its inquiry into the company's data-collection practices with no recommended action or findings of wrongdoing.