AppLovin (APP) Registers a Bigger Fall Than the Market: Important Facts to Note

Company Overview - AppLovin (APP) stock closed at $673.82, down 2.87%, underperforming the S&P 500, which lost 0.74% [1] - Over the past month, AppLovin's stock has increased by 6.23%, outperforming the Business Services sector's gain of 2.83% and the S&P 500's gain of 0.79% [1] Earnings Forecast - AppLovin is expected to report an EPS of $2.89, reflecting a growth of 67.05% year-over-year [2] - Revenue is projected to be $1.6 billion, indicating a 16.86% increase compared to the same quarter last year [2] Full-Year Estimates - The Zacks Consensus Estimates for AppLovin's full-year earnings are $9.32 per share and revenue of $5.57 billion, representing year-over-year changes of +105.74% and +18.2%, respectively [3] - Recent analyst estimate revisions are seen as positive indicators for the business outlook [3] Valuation Metrics - AppLovin has a Forward P/E ratio of 74.46, significantly higher than the industry average of 18.56 [6] - The company has a PEG ratio of 3.72, compared to the Technology Services industry's average PEG ratio of 1.72 [6] Industry Context - The Technology Services industry, part of the Business Services sector, holds a Zacks Industry Rank of 92, placing it in the top 38% of over 250 industries [7] - Strong industry rankings correlate with superior performance, with the top 50% rated industries outperforming the bottom half by a factor of 2 to 1 [7]