AppLovin shares plummeted on Monday after Bloomberg reported that the SEC has been probing the mobile advertising company over its data-collection practices.

The agency has been looking into whether the company violated agreements on pushing targeted ads to consumers, Bloomberg reported, citing people familiar with the matter. The report said that the SEC is responding to a whistleblower complained filed this year along with multiple short-seller reports, and added that neither the company nor its officials have been accused of wrongdoing.

An AppLovin spokesperson said the company doesn’t typically comment on the “existence or non-existence” of regulatory matters.

“That said, as a global public company, we regularly engage with regulators and if we get inquiries we address them in the ordinary course,” the spokesperson said in a statement. “Material developments, if any, would be disclosed through the appropriate public channels.”

The stock dropped 14% in regular trading after the report, which landed shortly before market close. It fell another 5% in extended trading.

AppLovin’s stock has been on a tear, jumping about 80% this year after soaring more than 700% in 2024. The surge has been driven by the company’s artificial intelligence technology that’s allowed it to provide better ad targeting capabilities to brands.

Last month, AppLovin was added to the S&P 500, replacing MarketAxess Holdings, at the same time that Robinhood joined the index in place of Caesars Entertainment.

AppLovin made the move into the benchmark despite a short-seller’s effort to keep it out.

In March, Fuzzy Panda Research advised the committee for the large-cap U.S. index to keep AppLovin from becoming a constituent. AppLovin shares dropped 15% in December, when the committee picked Workday to join the S&P 500.

Three notable short-seller firms, including Fuzzy Panda, have slammed AppLovin of late. The latest was Muddy Waters Research, which in March said the company’s ad tactics “systematically” violate app stores’ terms of service by “impermissibly extracting proprietary IDs from Meta, Snap, TikTok, Reddit, Google, and others.” In so doing, AppLovin is funneling targeted ads to users without their consent, Muddy Waters said.

Fuzzy Panda and Culper Research put out reports the prior month, taking aim at AppLovin’s AXON software, which drove its earnings growth and stock surge. The shares dropped 12% on Feb. 26, the day of the short reports.

After those reports were published, AppLovin CEO Adam Foroughi wrote a blog post, defending his company’s technology and practices, and taking aim at the short sellers trying to profit from AppLovin’s decline.

WATCH: AppLovin CEO on company’s bid to buy TikTok

Figma shares jumped 7% on Monday after the design software vendor’s technology was promoted by OpenAI CEO Sam Altman in an onstage demo at his company’s annual DevDay conference in San Francisco.

Altman discussed Figma’s integration into ChatGPT, which has more than 800 million monthly users. He showed how third-party applications could plug in with OpenAI’s Apps SDK, or software development framework.

“When someone’s using ChatGPT, you’ll be able to find an app by asking for it by name,” Altman said. “For example, you could sketch out a product flow for ChatGPT and then say, Figma, turn this sketch into a workable diagram. The Figma app will take over respond and complete the action.”

In addition to asking for Figma’s help by name in ChatGPT, the assistant can also suggest Figma when it’s relevant, Figma product manager Luke Zhang said in a blog post.

The rally for Figma, at its high point, was the steepest since the day of the company’s public market debut on the New York Stock Exchange in July.

Figma has been ramping up its own tools for working on app and website designs using generative AI models from OpenAI and other providers.

Subscribers to products that connect to the Apps SDK will be able to log in without leaving their ChatGPT conversations, Altman said. He said people working on products in Figma can also launch the FigJam tool to keep working on development ideas. Apps SDK is based on the Model Context Protocol, an open standard that OpenAI rival Anthropic introduced last year.

Software developers will be able to submit apps for review later in 2025, Altman said.

Over time, OpenAI will offer many ways to generate revenue through third-party integrations, Altman said. Last week, OpenAI announced a feature allowing people to buy products listed on Etsy through ChatGPT.

WATCH: Figma shares slide on revenue growth rate outlook

Instagram announced on Monday the launch of a new “Rings” award that will give 25 creators a literal gold ring and a matching badge on their profile, but no cash.

Winners will be chosen by a panel including Instagram chief Adam Mosseri, filmmaker Spike Lee, designer Marc Jacobs and YouTuber Marques Brownlee.

The move comes as Meta-owned Instagram has wound down its creator bonus program and brand deals are slowing across the industry, raising the question of why one of the world’s richest companies is offering jewelry and profile features instead of direct payouts.

“It’s more about a special visibility and sort of incentive for people to work towards a really cool elevated recognition,” Brownlee told CNBC.

He said he nominated creators whose work showed the most effort and risk-taking, not simply those with the biggest followings.

Winners can also change their profile backdrop color and customize the “like” button.

Meta ended its Reels Play bonus program, which was a key source of income for many creators, on Instagram and Facebook in 2023. At the time, some vented online that losing the payments left them struggling.

“As stupid as it sounds, in this economy it was a blessing for my household to have the extra money coming in,” wrote a user on Reddit.

Mosseri said in June 2024 that the company is considering changes to creator compensation, but no new plan has been announced.

Rivals YouTube and TikTok have their own creator revenue share programs.

YouTube paid out over $100 billion to creators over the last four years, the company reported in September.

Creators saw a dramatic drop in brand deals in 2024, falling 52%, according to a survey from Kajabi.

In January, Meta was offering deals to creators to promote Instagram on TikTok, Snapchat and YouTube, CNBC reported. However, an Instagram spokesperson said these deals had ended.

Against that backdrop, Instagram’s new gold rings stand out as a symbolic gesture rather than direct financial support in an increasingly challenging creator economy.

“This could be looked at as an incentive to make more Instagram stuff, or really just an incentive to make the best possible thing you can and hopefully get recognized for it,” Brownlee said. “No matter where you’re doing it, it feels good to know that it resonates with people, this is inspiring people, or this is impressing people.”