Published - August 11th, 2023 @ 11:10 AM (GMT+2)

‍AppLovin Corporation (NASDAQ:APP) has made headlines with its Q2 earnings report, revealing $0.22 per share earnings. This figure surpasses the Zacks Consensus Estimate of $0.08 per share and contrasts with the $0.06 loss per share from the previous year. When adjusted for unique, non-recurring factors, this report demonstrates an unexpected earnings increase of 175%.

Previous Performance & Revenue Details:

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Last quarter, the mobile app technology firm was anticipated to achieve $0.05 per share earnings. However, it reported a loss of $0.01 per share, leading to a -120% surprise. In the past four quarters, AppLovin has exceeded consensus EPS estimates only once. As a member of the Zacks Technology Services sector, the company disclosed revenues of $750.17 million for the quarter that concluded in June 2023, outdoing the Zacks Consensus Estimate by 3.92%. This is compared to the revenues of $776.23 million from last year.

Stock Performance & Future Expectations:

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The immediate reaction of AppLovin's stock price to these new figures, along with its future earnings projections, will largely depend on the insights provided by the company's management during the earnings call. AppLovin's shares have experienced a significant increase of 185.4% since the beginning of the year, far outpacing the S&P 500's gain of 17.2%.

Earnings Outlook & Industry Perspective:

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Investors are naturally curious about the future of AppLovin's stock. While the company has outperformed the market this year, the earnings forecast is a reliable indicator for investors. This includes the current consensus earnings expectations for the coming quarters and how these expectations have evolved recently. Research has shown a robust correlation between near-term stock movements and trends in earnings estimate revisions.

Other Industry News:

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In related industry news, MarketWise, Inc. (MKTW), another company in the same sector, is scheduled to announce its results for the quarter ending June 2023 on August 10. The company is anticipated to report quarterly earnings of $0.05 per share, marking a year-over-year decrease of -91.9%. The consensus EPS estimate for the quarter has remained stable over the past 30 days. MarketWise, Inc.'s expected revenues are $117 million, a reduction of 8.6% from the corresponding quarter of the previous year.

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Conclusion:

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AppLovin's Q2 earnings report has undoubtedly caught the attention of investors and market analysts. The company's stock is one to watch, with a strong performance that exceeded expectations and a promising outlook. The Technology Services industry's current position in the bottom 35% of the 250 plus Zacks industries adds a layer of complexity to the investment landscape.

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