Digital Turbine (NASDAQ:APPS) hit a 52-week high of $6.02 USD on Wednesday, which marks over a 200% increase since the start of the year. The Texas-based app discovery software developer has been outperforming expectations; however, this begs the question—is now the time to cash in on APPS stock?
What is Digital Turbine?
Digital Turbine has developed a mobile delivery platform that aims to streamline the process of getting apps from the mind of developers to the hands of new users. According to Digital Turbine’s website, “our Mobile Delivery platform makes it easier than ever for people to frictionlessly discover new apps, for operators and OEMs to build new revenue streams, and for advertisers to reach users at scale.” In an increasingly condensed mobile app environment, it’s no wonder that APPS stock has been rocketing over the last year.
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What’s Driving Digital Turbine’s Stock Growth?
APPS stock’s rise has largely been driven by a continuously high demand for the Digital Turbine platform among advertisers. Digital Turbine’s mobile platform, Ignite, has gained significant traction, and as of August 5, more than 290 million devices had Ignite installed. The company announced on Tuesday, August 6, its Q1 earnings of $0.05 USD per share, beating the Zacks Consensus Estimate of $0.02 per share, which compares to a loss of $0.01 per share a year ago.
What Next for Apps Stock?
While there is no definitive answer to this question, one reliable method is to look at the company’s earnings outlook. Investors can follow the correlation between near-term stock movements and trends in earnings estimate revisions or they can look to rating tools such as Zacks Rank, which is a short-term stock recommendation of one to three months that ranks stocks from #1, which is a “Strong Buy”, to #5, which is a “Strong Sell.”
APPS stock holds a Zacks ranking of #2, which indicates a “Buy.” However, it is important for investors to remember that the overall industry outlook can have an impact on APPS stock performance going forward.
Featured image: DepositPhotos © SergPoznanskiy
