In the latest trading session, AppLovin (APP) closed at $626.82, marking a -2.53% move from the previous day. The stock's change was less than the S&P 500's daily gain of 0.23%. On the other hand, the Dow registered a gain of 0.34%, and the technology-centric Nasdaq increased by 0.8%.
The mobile app technology company's shares have seen a decrease of 9.72% over the last month, not keeping up with the Business Services sector's loss of 1.72% and the S&P 500's gain of 3.57%.
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 expected to report EPS of $2.37, up 89.6% from the prior-year quarter. Meanwhile, the latest consensus estimate predicts the revenue to be $1.34 billion, indicating a 11.88% increase compared to the same quarter of the previous year.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $9.21 per share and a revenue of $5.52 billion, indicating changes of +103.31% and +17.21%, respectively, from the former year.
Any recent changes to analyst estimates for AppLovin should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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, the Zacks Consensus EPS estimate has shifted 1.53% upward. AppLovin is holding a Zacks Rank of #2 (Buy) right now.
In the context of valuation, AppLovin is at present trading with a Forward P/E ratio of 69.81. This denotes a premium relative to the industry average Forward P/E of 21.79.
Investors should also note that APP has a PEG ratio of 3.49 right now. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated 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. At present, this industry carries a Zacks Industry Rank of 78, placing it within the top 32% of over 250 industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these 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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