Shares of AppLovin (APP, Financial) experienced a significant decline of 7.78% today, with the stock currently priced at $327.33. This drop was primarily influenced by a forecast from Bank of America analyst Omar Dessouky, who predicted a deceleration in app revenue for the fourth quarter of 2024, anticipating a 4% sequential decline during a period that typically benefits from robust demand for mobile games.
AppLovin (APP, Financial), traded on the NASDAQ exchange, currently has a market capitalization of $109,847.59 million. The company's Price-to-Earnings ratio (P/E) stands at 99.19, indicating it is valued at a high multiple relative to its earnings. In terms of financial health, AppLovin's Altman Z-Score of 17.83 suggests strong financial stability, while its Piotroski F-Score of 8 indicates the company is in a very healthy condition.
Despite the recent downturn, AppLovin shows promise with a year-to-date price change of 1.1% and a 52-week price change of 744.15%. However, potential investors should note that the company's GF Value is estimated at $67.22, which implies that AppLovin is significantly overvalued at its current price. For more details, visit the GF Value page.
The company’s EBITDA growth over the past year has been impressive at 139.5%, showcasing a strong capability to generate operating income. However, with a Debt-to-Equity ratio of 3.74, AppLovin's leverage is relatively high, which could pose risks if revenue growth does not meet expectations.
Overall, while the recent analyst forecast and substantial insider selling have negatively impacted AppLovin’s stock price, the company's robust financial metrics and growth potential are noteworthy. Investors might find value in considering both the risks and opportunities presented by AppLovin (APP, Financial) in their investment strategy.
