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AppLovin (APP) Falls More Steeply Than Broader Market: What Investors Need to Know
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AppLovin (APP - Free Report) ended the recent trading session at $449.40, demonstrating a -2.61% change from the preceding day's closing price. This change lagged the S&P 500's daily loss of 1.52%. Elsewhere, the Dow saw a downswing of 1.56%, while the tech-heavy Nasdaq depreciated by 1.78%.
Prior to today's trading, shares of the mobile app technology company had gained 1.02% outpaced the Business Services sector's loss of 3.47% and the S&P 500's loss of 2.25%.
The upcoming earnings release of AppLovin will be of great interest to investors. It is anticipated that the company will report an EPS of $3.36, marking a 101.2% rise compared to the same quarter of the previous year. Simultaneously, our latest consensus estimate expects the revenue to be $1.77 billion, showing a 19.29% escalation compared to the year-ago quarter.
For the full year, the Zacks Consensus Estimates project earnings of $15.59 per share and a revenue of $8.05 billion, demonstrating changes of +55.28% and +38.69%, respectively, from the preceding year.
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. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
Empirical research indicates that these revisions in estimates have a direct correlation with impending 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 last 30 days, the Zacks Consensus EPS estimate has witnessed a 2.92% increase. AppLovin presently features a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that AppLovin has a Forward P/E ratio of 29.61 right now. This indicates a premium in contrast to its industry's Forward P/E of 15.63.
Investors should also note that APP has a PEG ratio of 0.81 right now. 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 1.35 as trading concluded yesterday.
The Technology Services industry is part of the Business Services sector. This industry, currently bearing a Zacks Industry Rank of 177, finds itself in the bottom 28% echelons of all 250+ industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
To follow APP in the coming trading sessions, be sure to utilize Zacks.com.
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AppLovin (APP) Falls More Steeply Than Broader Market: What Investors Need to Know
AppLovin (APP - Free Report) ended the recent trading session at $449.40, demonstrating a -2.61% change from the preceding day's closing price. This change lagged the S&P 500's daily loss of 1.52%. Elsewhere, the Dow saw a downswing of 1.56%, while the tech-heavy Nasdaq depreciated by 1.78%.
Prior to today's trading, shares of the mobile app technology company had gained 1.02% outpaced the Business Services sector's loss of 3.47% and the S&P 500's loss of 2.25%.
The upcoming earnings release of AppLovin will be of great interest to investors. It is anticipated that the company will report an EPS of $3.36, marking a 101.2% rise compared to the same quarter of the previous year. Simultaneously, our latest consensus estimate expects the revenue to be $1.77 billion, showing a 19.29% escalation compared to the year-ago quarter.
For the full year, the Zacks Consensus Estimates project earnings of $15.59 per share and a revenue of $8.05 billion, demonstrating changes of +55.28% and +38.69%, respectively, from the preceding year.
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. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
Empirical research indicates that these revisions in estimates have a direct correlation with impending 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 last 30 days, the Zacks Consensus EPS estimate has witnessed a 2.92% increase. AppLovin presently features a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that AppLovin has a Forward P/E ratio of 29.61 right now. This indicates a premium in contrast to its industry's Forward P/E of 15.63.
Investors should also note that APP has a PEG ratio of 0.81 right now. 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 1.35 as trading concluded yesterday.
The Technology Services industry is part of the Business Services sector. This industry, currently bearing a Zacks Industry Rank of 177, finds itself in the bottom 28% echelons of all 250+ industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
To follow APP in the coming trading sessions, be sure to utilize Zacks.com.