In the latest close session, AppLovin (APP) was down 2.95% at $379.17. This change lagged the S&P 500's daily loss of 1.6%. Elsewhere, the Dow saw a downswing of 1.23%, while the tech-heavy Nasdaq depreciated by 2.24%.
Shares of the mobile app technology company have appreciated by 14.36% over the course of the past month, outperforming the Business Services sector's loss of 1.38%, and the S&P 500's gain of 2.25%.
The investment community will be paying close attention to the earnings performance of AppLovin in its upcoming release. The company is slated to reveal its earnings on August 6, 2025. The company is expected to report EPS of $1.99, up 123.6% from the prior-year quarter. Simultaneously, our latest consensus estimate expects the revenue to be $1.21 billion, showing a 12.34% escalation compared to the year-ago quarter.
For the full year, the Zacks Consensus Estimates are projecting earnings of $8.39 per share and revenue of $5.51 billion, which would represent changes of +85.21% and +17.02%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for AppLovin. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.03% increase. AppLovin is currently a Zacks Rank #3 (Hold).
In the context of valuation, AppLovin is at present trading with a Forward P/E ratio of 46.54. This indicates a premium in contrast to its industry's Forward P/E of 21.61.
We can additionally observe that APP currently boasts a PEG ratio of 2.33. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. By the end of yesterday's trading, the Technology Services industry had an average PEG ratio of 1.79.
The Technology Services industry is part of the Business Services sector. This industry, currently bearing a Zacks Industry Rank of 97, finds itself in the top 40% echelons of all 250+ industries.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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AppLovin Corporation (APP): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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