In the latest close session, AppLovin (APP) was up +2.08% at $602.30. This change outpaced the S&P 500's 0.4% gain on the day. Elsewhere, the Dow saw a downswing of 0.04%, while the tech-heavy Nasdaq appreciated by 0.66%.
Prior to today's trading, shares of the mobile app technology company had lost 2.28% was narrower than the Business Services sector's loss of 2.72% and lagged the S&P 500's gain of 1.02%.
The investment community will be closely monitoring the performance of AppLovin in its forthcoming earnings report. The company is scheduled to release its earnings on November 5, 2025. On that day, AppLovin is projected to report earnings of $2.36 per share, which would represent year-over-year growth of 88.8%. Alongside, our most recent consensus estimate is anticipating revenue of $1.34 billion, indicating a 11.89% upward movement from the same quarter last year.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $9.21 per share and a revenue of $5.56 billion, indicating changes of +103.31% and +17.98%, respectively, from the former year.
Investors might also notice recent changes to analyst estimates for AppLovin. These revisions typically reflect the latest short-term business trends, which can change frequently. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.
Based on our research, we believe these estimate revisions are directly related to near-term stock moves. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 2.02% upward. Right now, AppLovin possesses a Zacks Rank of #2 (Buy).
Digging into valuation, AppLovin currently has a Forward P/E ratio of 64.05. This denotes a premium relative to the industry average Forward P/E of 21.76.
Investors should also note that APP has a PEG ratio of 3.2 right now. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. By the end of yesterday's trading, the Technology Services industry had an average PEG ratio of 1.84.
The Technology Services industry is part of the Business Services sector. This industry, currently bearing a Zacks Industry Rank of 56, finds itself in the top 23% echelons of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
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AppLovin Corporation (APP): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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