AppLovin stock plummeted over 16% this week due to an investigation by the SEC into its data collection practices for targeted advertising. The company, known for its rapid growth, faced selling pressure and a decline in share price. Despite revenue growth, the stock is trading at a premium with a high price-to-sales ratio. With competition from tech giants and potential legal issues, AppLovin appears overvalued and risky. Investors are advised to avoid buying shares at this time.

Read more at Yahoo Finance: Why AppLovin Stock Sank 16% This Week