Can AppLovin (APP) Stock Bounce Back Amid Recent Market Volatility?

Core Viewpoint - AppLovin (APP) has experienced significant stock volatility recently, dropping 36% from its all-time high of $525, but positive earnings revisions suggest potential for recovery as market conditions stabilize [2][3]. Financial Performance - AppLovin's fiscal 2025 EPS estimates have increased by 16$5.89 to $6.87, and FY26 EPS estimates have surged nearly 29$7.31 to $9.42 [4]. - The company beat Q4 EPS expectations for FY24 by 29.1%, indicating strong financial performance [4]. Earnings Estimates - The trend of earnings estimate revisions shows significant increases: Q1 estimates rose by 11.54%, Q2 by 12.23%, FY25 by 16.64%, and FY26 by 28.86% [5]. Valuation Metrics - AppLovin's current forward P/E ratio is 48.2X, which is more reasonable compared to its one-year high of 98.9X and closer to its 12-month median of 29.6X [6]. - The stock is viewed as a potential "buy the dip" opportunity due to the leveling of its P/E valuation, which is encouraging for long-term investors [8]. Market Outlook - The company is expected to achieve double-digit sales growth in FY25 and FY26, enhancing its investment appeal despite recent market volatility [7]. - AppLovin has received a Zacks Rank 1 (Strong Buy) rating, reflecting the positive trend in EPS revisions [7].