Digital Turbine was one of the most explosive stocks on the market.
After finding support around $38, the stock is just starting to pivot higher. From a current price of $52, we’d like to see APPS test resistance around $88 again.
For one, the company is in a strategic partnership with Google, which caught the attention of Roth Capital’s Darren Aftahi.
“APPS will act as one of the lead app discovery platforms for the roughly one billion Android devices across the globe Ignite – AAPS’ app delivery and discovery platform – supports, streamlining APPS’ ability to achieve greater scale and install footprint in which it can begin to introduce more products and services (many of which carry higher revenue per device rates),” said the analyst, as quoted by Tip Ranks.
Two, analysts at Macquarie upgraded the stock to outperform, as well with a price target of $80, believing the stock trades at an attractive valuation following a pullback.
Three, the company just reported that fiscal Q3 2022 revenue soared 324% year over year to $375.5 million.
“Very few companies can walk and chew gum at the same time,” said Bill Stone, CEO. “We made material progress on our integration strategy in the December quarter, while simultaneously delivering record financial results.”
“Top-line growth of 324% and 38%, on an as-reported basis and pro forma basis, respectively, is certainly a great result, but I am even more encouraged by the continued operating leverage exhibited by the business model. Non-GAAP adjusted EBITDA of more than $57 million during the December quarter increased by 153% on a year-over-year basis, and Non-GAAP adjusted EPS of $0.49 during the December quarter increased by 133% on a year-over-year basis.”