AppLovin (APP) closed at $600.32 in the latest trading session, marking a -4.67% move from the prior day. The stock's change was less than the S&P 500's daily loss of 0.28%. Elsewhere, the Dow lost 0.52%, while the tech-heavy Nasdaq lost 0.08%.
The mobile app technology company's shares have seen an increase of 11.03% over the last month, surpassing the Business Services sector's loss of 0.31% and the S&P 500's gain of 4.03%.
Analysts and investors alike will be keeping a close eye on the performance of AppLovin in its upcoming earnings disclosure. The company's earnings report is set to go public on November 5, 2025. The company's upcoming EPS is projected at $2.36, signifying a 88.80% increase compared to the same quarter of the previous year. At the same time, our most recent consensus estimate is projecting a revenue of $1.34 billion, reflecting a 11.89% rise from the equivalent quarter last year.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $9.21 per share and revenue of $5.56 billion, indicating changes of +103.31% and +17.98%, respectively, compared to the previous year.
Investors should also note any recent changes to analyst estimates for AppLovin. Such recent modifications usually signify the changing landscape of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.
The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the past month, there's been a 1% rise in the Zacks Consensus EPS estimate. AppLovin is currently sporting a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that AppLovin has a Forward P/E ratio of 68.36 right now. This indicates a premium in contrast to its industry's Forward P/E of 22.4.
Investors should also note that APP has a PEG ratio of 3.42 right now. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. APP's industry had an average PEG ratio of 1.84 as of yesterday's close.
The Technology Services industry is part of the Business Services sector. At present, this industry carries a Zacks Industry Rank of 91, placing it within the top 37% of over 250 industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding 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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