AppLovin (APP) closed at $552.64 in the latest trading session, marking a -2.35% move from the prior day. Elsewhere, the Dow saw an upswing of 0.47%, while the tech-heavy Nasdaq depreciated by 0.16%.
Prior to today's trading, shares of the mobile app technology company had lost 12.05% lagged the Business Services sector's loss of 7.9% and the S&P 500's gain of 1.16%.
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 November 5, 2025. The company is predicted to post an EPS of $2.36, indicating a 88.8% growth compared to the equivalent quarter last year. Simultaneously, our latest consensus estimate expects the revenue to be $1.34 billion, showing a 11.89% escalation compared to the year-ago quarter.
APP's full-year Zacks Consensus Estimates are calling for earnings of $9.21 per share and revenue of $5.56 billion. These results would represent year-over-year changes of +103.31% and +17.98%, respectively.
Investors might also notice recent changes to analyst estimates for AppLovin. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.
The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. The Zacks Consensus EPS estimate has moved 2.02% higher within the past month. AppLovin is currently sporting a Zacks Rank of #2 (Buy).
In terms of valuation, AppLovin is presently being traded at a Forward P/E ratio of 61.44. This denotes a premium relative to the industry average Forward P/E of 22.16.
We can also see that APP currently has a PEG ratio of 3.07. 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. 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. Currently, this industry holds a Zacks Industry Rank of 56, positioning it in the top 23% of all 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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