AppLovin (APP) Stock Slides as Market Rises: Facts to Know Before You Trade

AppLovin (APP) closed the latest trading day at $315.68, indicating a -0.88% change from the previous session's end. This change lagged the S&P 500's daily gain of 0.16%. Elsewhere, the Dow gained 0.86%, while the tech-heavy Nasdaq lost 0.38%.Prior to today's trading, shares of the mobile app technology company had lost 1.85% over the past month. This has was narrower than the Business Services sector's loss of 5.61% and the S&P 500's loss of 2.2% in that time.The investment community will be closely monitoring the performance of AppLovin in its forthcoming earnings report. The company is scheduled to release its earnings on February 12, 2025. On that day, AppLovin is projected to report earnings of $1.27 per share, which would represent year-over-year growth of 159.18%. At the same time, our most recent consensus estimate is projecting a revenue of $1.26 billion, reflecting a 32.26% rise from the equivalent quarter last year.Any recent changes to analyst estimates for AppLovin should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable 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. Over the past month, the Zacks Consensus EPS estimate has shifted 0.83% upward. As of now, AppLovin holds a Zacks Rank of #1 (Strong Buy).With respect to valuation, AppLovin is currently being traded at a Forward P/E ratio of 53.59. Its industry sports an average Forward P/E of 23.65, so one might conclude that AppLovin is trading at a premium comparatively.We can also see that APP currently has a PEG ratio of 2.68. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. By the end of yesterday's trading, the Technology Services industry had an average PEG ratio of 1.45.The Technology Services industry is part of the Business Services sector. At present, this industry carries a Zacks Industry Rank of 75, placing it within the top 30% of over 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 use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.7 Best Stocks for the Next 30 DaysJust released: Experts distill 7 elite stocks from the current list of 220 Zacks Rank #1 Strong Buys. They deem these tickers "Most Likely for Early Price Pops."Since 1988, the full list has beaten the market more than 2X over with an average gain of +24.1% per year. So be sure to give these hand picked 7 your immediate attention. See them now >>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 ReportTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks