AppLovin (APP) ended the recent trading session at $483.00, demonstrating a +2.09% change from the preceding day's closing price. The stock outperformed the S&P 500, which registered a daily gain of 0.54%. Elsewhere, the Dow saw an upswing of 1.05%, while the tech-heavy Nasdaq appreciated by 0.56%.
Prior to today's trading, shares of the mobile app technology company had lost 23.49% lagged the Business Services sector's loss of 6.48% and the S&P 500's gain of 0.74%.
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 February 11, 2026. The company is predicted to post an EPS of $2.89, indicating a 67.05% growth compared to the equivalent quarter last year. Alongside, our most recent consensus estimate is anticipating revenue of $1.6 billion, indicating a 16.86% upward movement from the same quarter last year.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $9.32 per share and revenue of $5.57 billion. These totals would mark changes of +105.74% and 0%, respectively, from last year.
Investors should also pay attention to any latest changes in analyst estimates for AppLovin. These revisions help to show the ever-changing nature of near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 0.03% upward. As of now, AppLovin holds a Zacks Rank of #2 (Buy).
Digging into valuation, AppLovin currently has a Forward P/E ratio of 31.24. This signifies a premium in comparison to the average Forward P/E of 16.55 for its industry.
One should further note that APP currently holds a PEG ratio of 1.56. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The average PEG ratio for the Technology Services industry stood at 1.55 at the close of the market yesterday.
The Technology Services industry is part of the Business Services sector. This industry currently has a Zacks Industry Rank of 154, which puts it in the bottom 38% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming 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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