AppLovin (APP) closed at $352.74 in the latest trading session, marking a +2.32% move from the prior day. The stock exceeded the S&P 500, which registered a gain of 0.61% for the day. Elsewhere, the Dow saw an upswing of 0.49%, while the tech-heavy Nasdaq appreciated by 0.95%.
Shares of the mobile app technology company witnessed a loss of 10.13% over the previous month, trailing the performance of the Business Services sector with its loss of 2.75%, and the S&P 500's gain of 3.85%.
The upcoming earnings release of AppLovin will be of great interest to investors. The company's earnings report is expected on August 6, 2025. The company is predicted to post an EPS of $1.97, indicating a 121.35% growth compared to the equivalent quarter last year. At the same time, our most recent consensus estimate is projecting a revenue of $1.21 billion, reflecting a 12.16% rise from the equivalent quarter last year.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $8.39 per share and revenue of $5.46 billion. These totals would mark changes of +85.21% and +15.98%, respectively, from last year.
Investors might also notice recent changes to analyst estimates for AppLovin. Such recent modifications usually signify the changing landscape of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
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, 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. Within the past 30 days, our consensus EPS projection has moved 1.15% lower. AppLovin is currently a Zacks Rank #3 (Hold).
With respect to valuation, AppLovin is currently being traded at a Forward P/E ratio of 41.08. This represents a premium compared to its industry average Forward P/E of 20.96.
We can also see that APP currently has a PEG ratio of 2.05. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. APP's industry had an average PEG ratio of 1.5 as of yesterday's close.
The Technology Services industry is part of the Business Services sector. This industry currently has a Zacks Industry Rank of 51, which puts it in the top 21% of all 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
AppLovin Corporation (APP): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
Zacks Investment Research
