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AppLovin (APP) Stock Sinks As Market Gains: Here's Why
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The most recent trading session ended with AppLovin (APP - Free Report) standing at $66.63, reflecting a -0.25% shift from the previouse trading day's closing. This move lagged the S&P 500's daily gain of 0.87%. Meanwhile, the Dow gained 0.67%, and the Nasdaq, a tech-heavy index, added 1.11%.
The the stock of mobile app technology company has fallen by 6.22% in the past month, leading the Business Services sector's loss of 7.27% and undershooting the S&P 500's loss of 3.97%.
Market participants will be closely following the financial results of AppLovin in its upcoming release. The company plans to announce its earnings on May 8, 2024. The company is predicted to post an EPS of $0.56, indicating a 5700% growth compared to the equivalent quarter last year. Meanwhile, our latest consensus estimate is calling for revenue of $969.05 million, up 35.45% from the prior-year quarter.
APP's full-year Zacks Consensus Estimates are calling for earnings of $2.47 per share and revenue of $4.05 billion. These results would represent year-over-year changes of +152.04% and +23.34%, respectively.
Any recent changes to analyst estimates for AppLovin should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.
The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.35% lower. AppLovin is currently a Zacks Rank #3 (Hold).
Valuation is also important, so investors should note that AppLovin has a Forward P/E ratio of 27 right now. This represents a premium compared to its industry's average Forward P/E of 22.36.
Meanwhile, APP's PEG ratio is currently 1.35. 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 Technology Services industry had an average PEG ratio of 1.52 as trading concluded yesterday.
The Technology Services industry is part of the Business Services sector. With its current Zacks Industry Rank of 148, this industry ranks in the bottom 42% of all industries, numbering over 250.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.
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AppLovin (APP) Stock Sinks As Market Gains: Here's Why
The most recent trading session ended with AppLovin (APP - Free Report) standing at $66.63, reflecting a -0.25% shift from the previouse trading day's closing. This move lagged the S&P 500's daily gain of 0.87%. Meanwhile, the Dow gained 0.67%, and the Nasdaq, a tech-heavy index, added 1.11%.
The the stock of mobile app technology company has fallen by 6.22% in the past month, leading the Business Services sector's loss of 7.27% and undershooting the S&P 500's loss of 3.97%.
Market participants will be closely following the financial results of AppLovin in its upcoming release. The company plans to announce its earnings on May 8, 2024. The company is predicted to post an EPS of $0.56, indicating a 5700% growth compared to the equivalent quarter last year. Meanwhile, our latest consensus estimate is calling for revenue of $969.05 million, up 35.45% from the prior-year quarter.
APP's full-year Zacks Consensus Estimates are calling for earnings of $2.47 per share and revenue of $4.05 billion. These results would represent year-over-year changes of +152.04% and +23.34%, respectively.
Any recent changes to analyst estimates for AppLovin should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.
The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.35% lower. AppLovin is currently a Zacks Rank #3 (Hold).
Valuation is also important, so investors should note that AppLovin has a Forward P/E ratio of 27 right now. This represents a premium compared to its industry's average Forward P/E of 22.36.
Meanwhile, APP's PEG ratio is currently 1.35. 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 Technology Services industry had an average PEG ratio of 1.52 as trading concluded yesterday.
The Technology Services industry is part of the Business Services sector. With its current Zacks Industry Rank of 148, this industry ranks in the bottom 42% of all industries, numbering over 250.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.