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AppLovin and Victoria's Secret have been highlighted as Zacks Bull and Bear of the Day
Read MoreHide Full Article
For Immediate Release
Chicago, IL – June 26, 2025 – Zacks Equity Research shares AppLovin (APP - Free Report) as the Bull of the Day and Victoria’s Secret (VSCO - Free Report) as the Bear of the Day. In addition, Zacks Equity Research provides analysis on SoFi Technologies, Inc. (SOFI - Free Report) , Block (XYZ - Free Report) and Upstart (UPST - Free Report) .
AppLovin, a leading ad-tech platform powering mobile app monetization and user acquisition, has emerged as one of the most explosive growth stories in the tech sector over the past few years. Fueled by surging demand for performance-based advertising and advanced machine learning capabilities, the company has carved out a highly profitable position in a rapidly growing industry.
The stock has delivered a staggering return of over 1,300% in just two years, rewarding early believers with outsized gains. And notably, the Zacks Rank was ahead of the curve, as APP held a top Zacks Rank for much of that historic run, flagging strong earnings momentum well before the broader market caught on.
Following such a meteoric rise, shares have traded sideways over the past eight months as the valuation cooled and profit-taking set in. But now, with the stock consolidating and fundamentals continuing to strengthen, the setup is once again turning bullish. Earnings growth remains robust, and analysts have issued substantial upward revisions to estimates, indicating a strong turn higher in sentiment. With momentum building, AppLovin looks ready for its next leg higher.
Can Earnings Upgrades Propel AppLovin Stock Higher Again?
Over the past two months, AppLovin has received some of the most significant upward revisions that I have seen in a tech stock. Analysts have raised their forecasts by nearly 30% across timeframes, an unusually sharp and unanimous upgrade that has propelled APP to a Zacks Rank #1 (Strong Buy).
What makes these upgrades even more compelling is AppLovin’s impressive track record of outperforming expectations. The company has surpassed earnings estimates in each of the last four quarters, with an average surprise of 23%. That history suggests that even after these aggressive revisions, current estimates may still be conservative.
Looking ahead, earnings are projected to grow by a remarkable 88.5% in 2025, followed by another strong year of 41.1% growth in 2026. Revenue is also expected to expand at an accelerating pace, rising 16.6% this year and 20.4% next year. With both top- and bottom-line momentum and continued bullish analyst sentiment, AppLovin’s next leg higher may already be taking shape.
AppLovin Stock Breaks Out from Technical Pattern
After experiencing a sharp correction between February and April, AppLovin stock has been quietly forming a classic cup and handle pattern, a bullish technical formation that often precedes significant upward moves. This pattern typically reflects a period of consolidation and accumulation following a strong prior uptrend.
On Tuesday, the stock appeared to break out decisively above the handle’s upper resistance level, signaling a potential resumption of its broader uptrend. This breakout is another encouraging sign that investor conviction is returning.
As long as APP holds above this key breakout level, the technical setup suggests increasing momentum and the potential for continued buying pressure. If the pattern plays out in full, the measured move could imply substantial upside from current levels, reinforcing the bullish case already supported by earnings strength and analyst upgrades.
AppLovin Shares Trade at a Premium Valuation
AppLovin is not a cheap stock by any stretch. The shares currently trade at 40.6x forward earnings, which is above the industry average, but notably still below the company’s three-year median valuation of 49.3x. This elevated multiple reflects the market’s recognition of AppLovin’s robust earnings growth, strong cash flow, and dominant position within the ad-tech ecosystem.
While the valuation may give pause to traditional value investors, it remains within a reasonable range for high-growth, high-momentum tech names. For active traders and investors who focus on growth and momentum strategies, AppLovin’s premium multiple may be justified by its consistent earnings beats, accelerating revenue growth, and recent bullish breakout on the charts. In this context, the stock’s valuation, though rich, is not absurd, especially if the company continues to deliver on its aggressive growth trajectory.
Should Investors Buy Shares in APP?
With strong earnings momentum, bullish estimate revisions, and a breakout from a bullish technical pattern, AppLovin is showing all the right signals for a potential move higher. While the stock trades at a premium, its growth outlook and execution may justify the valuation. For investors focused on momentum and growth, AppLovin looks like a timely opportunity to ride the next leg of its rally.
Victoria’s Secret is my latest addition to our Bear of the Day list, and it’s another example of a once-dominant apparel brand struggling to adapt to shifting consumer preferences. Like many legacy retailers in the fashion space, Victoria’s Secret has fallen out of favor in a rapidly evolving marketplace where brand relevance and customer loyalty are harder than ever to maintain.
Revenue growth has been stagnant at best, with recent quarters showing flat or declining sales. Unfortunately, the outlook doesn’t inspire confidence either. Analysts have been steadily lowering their earnings estimates, signaling a broader loss of confidence in the company’s ability to execute a turnaround.
As a result, the stock has suffered a steep decline—down sharply year to date and significantly underperforming over the past three years. With little near-term momentum and continued downward revisions, the stock remains under pressure.
Victoria’s Secret Stock Falters on Downgrades
Victoria’s Secret has come under heavy pressure in recent months as analysts have issued sharp and widespread earnings downgrades. The stock now holds a Zacks Rank #5 (Strong Sell), reflecting both deteriorating fundamentals and rapidly falling expectations.
Over the past two months, earnings estimates have been slashed across the board. Current quarter projections have plunged by 62%, while full-year estimates for both this year and next are down 12.2% and 13.1%, respectively. Such steep revisions suggest a deepening lack of confidence in the company’s near-term performance.
The downgrades come amid a longer-term trend of declining revenue. Annual sales have fallen from $6.7 billion in 2022 to just $6.2 billion over the trailing twelve months. Looking ahead, Wall Street isn’t forecasting a rebound as sales are expected to remain essentially flat through at least next year. Without clear signs of growth or strategic reinvention, Victoria’s Secret faces a tough road ahead in an increasingly competitive retail landscape.
Should Investors Avoid VSCO Stock?
Given the sharp downward momentum in both the stock and earnings estimates, investors may want to steer clear of Victoria’s Secret for now. The company faces multiple headwinds: a stagnant top line, shrinking margins, and a highly competitive retail environment dominated by more agile, digitally native brands that are better aligned with today’s consumer preferences.
In addition to the declining revenue and earnings outlook, the company lacks a clear turnaround strategy or growth catalyst. Its brand, which once defined a category, has struggled to maintain cultural relevance in an era of shifting values and consumer expectations. Meanwhile, promotional activity across the sector is intensifying, placing further pressure on profitability.
With a Zacks Rank #5 (Strong Sell), ongoing analyst downgrades, and no visible signs of a reversal in fundamentals, VSCO appears to be a stock best avoided until there is meaningful improvement in its outlook or execution.
Additional content:
SoFi's Valuation Looks Overstretched: Time to Hit Pause?
SoFi Technologies, Inc. has made a strong comeback, reflecting renewed investor confidence in its digital-first model and growing stream of fee-based income. Its asset-light platform continues to scale well, helping reduce dependence on traditional lending revenues. But with the stock now trading at over 41X forward earnings, some investors are starting to wonder if SoFi has gotten a bit ahead of itself.
While SoFi’s long-term story remains compelling, it’s important to consider the bigger picture. Ongoing geopolitical tensions, tariff-related uncertainties, and concerns of a possible economic slowdown through 2026 could introduce new challenges. These factors might not derail SoFi’s momentum entirely, but they could weigh on its valuation in the near term. For a company still partially reliant on lending, shifts in the macro environment can impact earnings more than expected.
None of this means SoFi is a sell; it’s more about being thoughtful at these levels. The recent rally has priced in a lot of optimism, so waiting for a more favorable entry could be a smart move. The fundamentals are strong, but letting the valuation catch up to the story may offer better risk-reward.
Other Fintechs to Watch While You Wait on SoFi
If SoFi feels a bit expensive right now, Block and Upstart may offer better value. Block, trading at a forward P/E of 2X, stands out for its diversified ecosystem, including Cash App and Square. Investors value Block for its balanced revenue streams and long-term fintech vision. In a choppy market, XYZ may offer steadier ground.
Meanwhile, Upstart, with a forward P/E of 33X, continues to lean into its AI-driven lending platform. Though UPST has faced volatility, it remains a strong contender if credit conditions stabilize. For those seeking growth at more grounded valuations, both Block and UPST deserve consideration while SoFi cools off.
SOFI’s Price Performance, Estimates
The stock has gained 21% in three months compared with the industry’s 10% rally.
The Zacks Consensus Estimate for SOFI’s earnings has been on the rise over the past 60 days.
Since 2000, our top stock-picking strategies have blown away the S&P's +7.7% average gain per year. Amazingly, they soared with average gains of +48.4%, +50.2% and +56.7% per year.
Today you can access their live picks without cost or obligation.
Zacks.com provides investment resources and informs you of these resources, which you may choose to use in making your own investment decisions. Zacks is providing information on this resource to you subject to the Zacks "Terms and Conditions of Service" disclaimer. www.zacks.com/disclaimer.
Past performance is no guarantee of future results. Inherent in any investment is the potential for loss.This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index.Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.
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AppLovin and Victoria's Secret have been highlighted as Zacks Bull and Bear of the Day
For Immediate Release
Chicago, IL – June 26, 2025 – Zacks Equity Research shares AppLovin (APP - Free Report) as the Bull of the Day and Victoria’s Secret (VSCO - Free Report) as the Bear of the Day. In addition, Zacks Equity Research provides analysis on SoFi Technologies, Inc. (SOFI - Free Report) , Block (XYZ - Free Report) and Upstart (UPST - Free Report) .
Here is a synopsis of all five stocks.
Bull of the Day:
AppLovin, a leading ad-tech platform powering mobile app monetization and user acquisition, has emerged as one of the most explosive growth stories in the tech sector over the past few years. Fueled by surging demand for performance-based advertising and advanced machine learning capabilities, the company has carved out a highly profitable position in a rapidly growing industry.
The stock has delivered a staggering return of over 1,300% in just two years, rewarding early believers with outsized gains. And notably, the Zacks Rank was ahead of the curve, as APP held a top Zacks Rank for much of that historic run, flagging strong earnings momentum well before the broader market caught on.
Following such a meteoric rise, shares have traded sideways over the past eight months as the valuation cooled and profit-taking set in. But now, with the stock consolidating and fundamentals continuing to strengthen, the setup is once again turning bullish. Earnings growth remains robust, and analysts have issued substantial upward revisions to estimates, indicating a strong turn higher in sentiment. With momentum building, AppLovin looks ready for its next leg higher.
Can Earnings Upgrades Propel AppLovin Stock Higher Again?
Over the past two months, AppLovin has received some of the most significant upward revisions that I have seen in a tech stock. Analysts have raised their forecasts by nearly 30% across timeframes, an unusually sharp and unanimous upgrade that has propelled APP to a Zacks Rank #1 (Strong Buy).
What makes these upgrades even more compelling is AppLovin’s impressive track record of outperforming expectations. The company has surpassed earnings estimates in each of the last four quarters, with an average surprise of 23%. That history suggests that even after these aggressive revisions, current estimates may still be conservative.
Looking ahead, earnings are projected to grow by a remarkable 88.5% in 2025, followed by another strong year of 41.1% growth in 2026. Revenue is also expected to expand at an accelerating pace, rising 16.6% this year and 20.4% next year. With both top- and bottom-line momentum and continued bullish analyst sentiment, AppLovin’s next leg higher may already be taking shape.
AppLovin Stock Breaks Out from Technical Pattern
After experiencing a sharp correction between February and April, AppLovin stock has been quietly forming a classic cup and handle pattern, a bullish technical formation that often precedes significant upward moves. This pattern typically reflects a period of consolidation and accumulation following a strong prior uptrend.
On Tuesday, the stock appeared to break out decisively above the handle’s upper resistance level, signaling a potential resumption of its broader uptrend. This breakout is another encouraging sign that investor conviction is returning.
As long as APP holds above this key breakout level, the technical setup suggests increasing momentum and the potential for continued buying pressure. If the pattern plays out in full, the measured move could imply substantial upside from current levels, reinforcing the bullish case already supported by earnings strength and analyst upgrades.
AppLovin Shares Trade at a Premium Valuation
AppLovin is not a cheap stock by any stretch. The shares currently trade at 40.6x forward earnings, which is above the industry average, but notably still below the company’s three-year median valuation of 49.3x. This elevated multiple reflects the market’s recognition of AppLovin’s robust earnings growth, strong cash flow, and dominant position within the ad-tech ecosystem.
While the valuation may give pause to traditional value investors, it remains within a reasonable range for high-growth, high-momentum tech names. For active traders and investors who focus on growth and momentum strategies, AppLovin’s premium multiple may be justified by its consistent earnings beats, accelerating revenue growth, and recent bullish breakout on the charts. In this context, the stock’s valuation, though rich, is not absurd, especially if the company continues to deliver on its aggressive growth trajectory.
Should Investors Buy Shares in APP?
With strong earnings momentum, bullish estimate revisions, and a breakout from a bullish technical pattern, AppLovin is showing all the right signals for a potential move higher. While the stock trades at a premium, its growth outlook and execution may justify the valuation. For investors focused on momentum and growth, AppLovin looks like a timely opportunity to ride the next leg of its rally.
Bear of the Day:
Victoria’s Secret is my latest addition to our Bear of the Day list, and it’s another example of a once-dominant apparel brand struggling to adapt to shifting consumer preferences. Like many legacy retailers in the fashion space, Victoria’s Secret has fallen out of favor in a rapidly evolving marketplace where brand relevance and customer loyalty are harder than ever to maintain.
Revenue growth has been stagnant at best, with recent quarters showing flat or declining sales. Unfortunately, the outlook doesn’t inspire confidence either. Analysts have been steadily lowering their earnings estimates, signaling a broader loss of confidence in the company’s ability to execute a turnaround.
As a result, the stock has suffered a steep decline—down sharply year to date and significantly underperforming over the past three years. With little near-term momentum and continued downward revisions, the stock remains under pressure.
Victoria’s Secret Stock Falters on Downgrades
Victoria’s Secret has come under heavy pressure in recent months as analysts have issued sharp and widespread earnings downgrades. The stock now holds a Zacks Rank #5 (Strong Sell), reflecting both deteriorating fundamentals and rapidly falling expectations.
Over the past two months, earnings estimates have been slashed across the board. Current quarter projections have plunged by 62%, while full-year estimates for both this year and next are down 12.2% and 13.1%, respectively. Such steep revisions suggest a deepening lack of confidence in the company’s near-term performance.
The downgrades come amid a longer-term trend of declining revenue. Annual sales have fallen from $6.7 billion in 2022 to just $6.2 billion over the trailing twelve months. Looking ahead, Wall Street isn’t forecasting a rebound as sales are expected to remain essentially flat through at least next year. Without clear signs of growth or strategic reinvention, Victoria’s Secret faces a tough road ahead in an increasingly competitive retail landscape.
Should Investors Avoid VSCO Stock?
Given the sharp downward momentum in both the stock and earnings estimates, investors may want to steer clear of Victoria’s Secret for now. The company faces multiple headwinds: a stagnant top line, shrinking margins, and a highly competitive retail environment dominated by more agile, digitally native brands that are better aligned with today’s consumer preferences.
In addition to the declining revenue and earnings outlook, the company lacks a clear turnaround strategy or growth catalyst. Its brand, which once defined a category, has struggled to maintain cultural relevance in an era of shifting values and consumer expectations. Meanwhile, promotional activity across the sector is intensifying, placing further pressure on profitability.
With a Zacks Rank #5 (Strong Sell), ongoing analyst downgrades, and no visible signs of a reversal in fundamentals, VSCO appears to be a stock best avoided until there is meaningful improvement in its outlook or execution.
Additional content:
SoFi's Valuation Looks Overstretched: Time to Hit Pause?
SoFi Technologies, Inc. has made a strong comeback, reflecting renewed investor confidence in its digital-first model and growing stream of fee-based income. Its asset-light platform continues to scale well, helping reduce dependence on traditional lending revenues. But with the stock now trading at over 41X forward earnings, some investors are starting to wonder if SoFi has gotten a bit ahead of itself.
While SoFi’s long-term story remains compelling, it’s important to consider the bigger picture. Ongoing geopolitical tensions, tariff-related uncertainties, and concerns of a possible economic slowdown through 2026 could introduce new challenges. These factors might not derail SoFi’s momentum entirely, but they could weigh on its valuation in the near term. For a company still partially reliant on lending, shifts in the macro environment can impact earnings more than expected.
None of this means SoFi is a sell; it’s more about being thoughtful at these levels. The recent rally has priced in a lot of optimism, so waiting for a more favorable entry could be a smart move. The fundamentals are strong, but letting the valuation catch up to the story may offer better risk-reward.
Other Fintechs to Watch While You Wait on SoFi
If SoFi feels a bit expensive right now, Block and Upstart may offer better value. Block, trading at a forward P/E of 2X, stands out for its diversified ecosystem, including Cash App and Square. Investors value Block for its balanced revenue streams and long-term fintech vision. In a choppy market, XYZ may offer steadier ground.
Meanwhile, Upstart, with a forward P/E of 33X, continues to lean into its AI-driven lending platform. Though UPST has faced volatility, it remains a strong contender if credit conditions stabilize. For those seeking growth at more grounded valuations, both Block and UPST deserve consideration while SoFi cools off.
SOFI’s Price Performance, Estimates
The stock has gained 21% in three months compared with the industry’s 10% rally.
The Zacks Consensus Estimate for SOFI’s earnings has been on the rise over the past 60 days.
SOFI stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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Today you can access their live picks without cost or obligation.
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Zacks.com provides investment resources and informs you of these resources, which you may choose to use in making your own investment decisions. Zacks is providing information on this resource to you subject to the Zacks "Terms and Conditions of Service" disclaimer. www.zacks.com/disclaimer.
Past performance is no guarantee of future results. Inherent in any investment is the potential for loss.This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index.Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.