AppLovin (APP) Stock Sinks As Market Gains: Here's Why

Company Overview - AppLovin's stock closed at $66.63, reflecting a -0.25% change from the previous trading day, underperforming the S&P 500's gain of 0.87% [1] - The stock has decreased by 6.22% over the past month, contributing to a 7.27% loss in the Business Services sector, which is worse than the S&P 500's loss of 3.97% [1] Upcoming Financial Results - AppLovin is set to announce its earnings on May 8, 2024, with an expected EPS of $0.56, indicating a significant growth of 5700% compared to the same quarter last year [1] - The consensus estimate for revenue is $969.05 million, representing a year-over-year increase of 35.45% [1] Full-Year Estimates - The Zacks Consensus Estimates for AppLovin's full-year earnings are $2.47 per share and revenue of $4.05 billion, reflecting year-over-year changes of +152.04% and +23.34%, respectively [2] Analyst Sentiment - Recent changes to analyst estimates for AppLovin indicate positive sentiment, as revisions often correlate with near-term share price momentum [2] - AppLovin currently holds a Zacks Rank of 3 (Hold), with the consensus EPS estimate having decreased by 0.35% over the past month [3] Valuation Metrics - AppLovin has a Forward P/E ratio of 27, which is a premium compared to the industry average of 22.36 [3] - The company's PEG ratio stands at 1.35, while the Technology Services industry average PEG ratio is 1.52 [3] Industry Context - The Technology Services industry, part of the Business Services sector, has a Zacks Industry Rank of 148, placing it in the bottom 42% of over 250 industries [4] - The Zacks Industry Rank indicates that the top 50% rated industries outperform the bottom half by a factor of 2 to 1 [4]