Digital Turbine (NASDAQ:APPS), which makes money from mobile ad spending, has had a rough summer. APPS stock fell from a peak close of $94.74 on Mar. 1 to a low close of $47.90 on Aug. 19. That’s a drop of almost 50% over six months.
Now, however, it seems the stock has fallen too far. APPS currently looks like good value. In fact, I think there is good reason to believe it could move significantly higher. Here’s what you should know about APPS stock moving forward.
This company earns money from targeting ads to both advertisers and publishers with its two new acquisitions this year, AdColony and Fyber. It gets paid on a variety of click-through rates (cost per click and cost per mile) on mobile phones and tablets with a limited number of clients and carriers. So, as general economic growth climbs and as mobile engagement increases, APPS makes more money.
Digital Turbine reported excellent results on Aug. 9 for its fiscal first quarter. And this did not even include the Fyber acquisition for the whole period.