Stock, Digital Turbine Is Digital Turbine Stock A Buy Before Earnings? (APPS Stock Analysis)
It has a 5 billion dollar market cap and is expected to hit 15 cents eps. So in this video i’ll do a rundown of the company, some of the different things you should know if you are an investor in the company already or if you are considering jumping in now before we get into digital turbine, make sure if you happen to enjoy This video that you subscribe to the channel, as you can see here, a lot of people who watch the videos are not subscribed and it really does help with growing the channel and be able to provide more videos just like this one. So digital turbine, the way their business model works is that they are in the mobile advertising space, in particular with android phones, where app creators get their apps pre installed into the android phones, and digital turbine makes money from that. So in essence, the more phones that get sold the better digital turbine will do now. Apple recently reported earnings, and they did very well on those earnings, and that is a good sign, because that can indicate that google might have done well with selling their smartphones. Now, when it comes to google’s earnings reports, like the only thing that matters for a digital turbine, at least the most important part, is those smartphone sales. So the fact that apple came in with a great earnings report and they their whole business model for the most part, is fueled by the iphone with some other elements as well, but their iphone is their top asset.
It really works well for digital turbine and google. Interestingly enough reports earnings the day before digital turbine does so we get an even better perspective as to how digital turbine will perform. Based on how google performs in their earnings report, digital turbine is no stranger to good earnings reports. They saw close to 40 percent revenue. Increase from 2018 to 2019. in 2019, the company generated about 103 million dollars in revenue and in q3 2020 alone they made 70 million dollars in revenue, so that goes to show. The business has been growing significantly that’s going to just be the context that builds into q4 of 2020 when we get those results in the next few days. So we are looking at a high growth company that has done a fine job at minimizing losses. Going to that path of profitability, so it is a growth stock and analysts love it. They keep raising their price targets. Some people see it as there’s this path, where digital turbine could eventually hit a hundred dollars per share, which isn’t really surprising people think this way. Considering the stock has gone up over 800 percent over the past 365 days, so there’s a lot of momentum with the stock right now, and it is down a little more than 20 percent from its highs, which could present a buy the dip opportunity now digital turbine Is not a cheap stock, it has a price of sales in the neighborhood of 26, which definitely means it’s up there, but you are getting a proven company with solid growth.
So if you are able to take on some risk – and you want those higher returns, you want to get into a growth stock, that valuation wise may look a little overvalued, but there’s a lot of promise in the company and a 5 billion dollar market cap, which Indicates a lot more runway in the works, i would definitely recommend entering this stock before earnings. I have a call on the stock right now. That is my only position. Uh at the 65 strike price is where i’m currently at for the option that expires in february, but i do think digital turbine is a really solid investment that can continue to grow over the long term as mobile advertising is just going to keep on expanding and They are getting into helping out not just the mobile app creators, but also the smart tv app creators with boosting their exposure as well, so there’s a lot of different ways that digital turbine can continue to expand and we see apple reporting, really great earnings. A lot more demand for their smartphones, so you could take that as an industry thing where i don’t think apple is the only player that is seeing increased, smartphone demand and we’ll get a better idea of that. When google reports earnings the day before digital turbine reports, their earnings, so in any event, let me know what you guys think about digital turbine if you are getting into it before earnings, if you are already a shareholder or if you see another stock on the radar That people may not be looking at that.
Maybe you want me to talk about in a future video. Maybe you just want to educate us in the comments.