AppLovin (APP) Suffers a Larger Drop Than the General Market: Key Insights

Company Performance - AppLovin's stock closed at $364.49, down 4.23% from the previous trading session, underperforming the S&P 500's loss of 1.13% [1] - The stock has increased by 3.81% over the past month, outperforming the Business Services sector's gain of 0.81% and the S&P 500's gain of 3.55% [1] Earnings Expectations - AppLovin is expected to report an EPS of $2.01, representing a 125.84% increase from the same quarter last year [2] - Revenue is projected to be $1.4 billion, reflecting a 29.6% rise from the equivalent quarter last year [2] Full Year Projections - For the full year, earnings are projected at $8.41 per share and revenue at $5.72 billion, indicating changes of +85.65% and +21.48% respectively from the prior year [3] - Recent analyst estimate revisions are seen as a positive sign for the business outlook [3] Valuation Metrics - AppLovin is currently trading at a Forward P/E ratio of 45.26, which is a premium compared to the industry average of 20.43 [6] - The company has a PEG ratio of 2.26, while the Technology Services industry has an average PEG ratio of 1.44 [6] Industry Ranking - The Technology Services industry, part of the Business Services sector, has a Zacks Industry Rank of 44, placing it in the top 18% of over 250 industries [7] - The top 50% rated industries outperform the bottom half by a factor of 2 to 1 [7]