Applovin's Q3 Earnings to Test Growth Narrative Amid Data Scrutiny
Applovin's upcoming earnings report and data collection scrutiny have sparked mixed reactions from analysts. The company's valuation and growth narrative are under the microscope, with a contentious P/E ratio of 86 and a PEG ratio of 0.38. Shareholders await guidance on whether to buy or sell, following a free analysis on November 2.
BTIG has lowered its price target for Applovin stock from $693 to $664, but maintained a 'Buy' rating. The Q3 earnings report, due on November 5, is expected to reveal EPS of $2.34 and revenue of approximately $1.34 billion. However, analysts' forecasts vary, and the earnings report could shed light on whether Applovin's growth narrative remains intact or if a correction is imminent.
Applovin's year-to-date performance stands at +86.5%, and its past 12-month performance is +289.7%. Despite this, data privacy organizations and financial analysts have criticized the company's data collection practices. They recommend shareholders push for increased transparency and stricter data protection measures. Both state prosecutors and the SEC are currently scrutinizing these practices. A DCF analysis suggests Applovin stock is overvalued by 20.2%, with an intrinsic value of $530.17 per share.
Applovin's Q3 earnings report on November 5 will provide crucial insights into the company's growth narrative and valuation. Meanwhile, investigations into its data collection practices continue, with analysts advising shareholders to stay informed and consider their positions carefully.
