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Digital Turbine - AI Stock Analysis

Analysis generated November 12, 2024

Digital Turbine, Inc. (APPS) operates a digital advertising business specializing in mobile advertising technology. The company's offerings include app preloads, premium advertisements, and content discovery tools. By leveraging a suite of products aimed at mobile operators and Original Equipment Manufacturers (OEMs), Digital Turbine focuses on app discovery, user acquisition, and monetization.

Fundamental Analysis

Digital Turbine's current revenue for the last quarter stands at $109M. This represents a slight quarter-over-quarter decrease of 1.84%, and more significantly, an 18.60% decrease compared to the same quarter last year. These figures indicate a concerning trend in revenue decline which may signal underlying challenges in generating sales or market share erosion.

On a more positive note, the net income for the last quarter was $25M. Compared to the previous quarter, this marks an increase of 0.68%, showing a positive direction in earnings growth. More impressively, this is an 84.53% increase compared to the same quarter last year, echoing strong year-over-year growth.

The company reported an EBITDA of $5M for the last quarter. This is down by 11.74% from the previous quarter, raising some concerns about operating efficiency. However, this marks a remarkable increase of 103.74% year-over-year, signalling significant improvement in operational profitability.

Technical Analysis

The current stock price of Digital Turbine stands at $1.36. This is a worrying decrease of 61.03% from a month ago and a further 71.06% drop over the past year. The trend observed appears to be bearish, which might be an indication of broader market sentiment or company-specific challenges.

The current SMA10 is 2.17, having come down from a previous SMA10 of 2.35. This points to a potential downward trend in stock price movement. The Relative Strength Index (RSI) is currently at 58.6, indicating a neutral condition and suggesting that the stock is neither overbought nor oversold at this point.

Alternative Data Analysis

Analyzing alternative data points, Digital Turbine has 28 open job positions listed on popular job boards, reflecting a decrease of 47% in recent months. This reduction in job openings may imply efforts to cut costs and improve margins but could also indicate slower growth or operational challenges.

The business outlook has dropped by 33% over the last couple of months, which is a notable downward trend and may reflect reduced market optimism or uncertainty about the company's future.

The company's estimated website traffic is approximately 270,000 visitors, down by 13% in recent months. This trend could signal a loss in customer interest or engagement. On social media, Digital Turbine has 2,400 followers on Instagram and 4,800 followers on Twitter, with no significant changes in follower count, indicating a stable but not rapidly growing engagement.

According to AltIndex’s AI predictive model, Digital Turbine has received an AI score of 18, which stands as a strong sell signal. This syntheses standard financial and alternative data to offer future price trajectory predictions.

Conclusion and Recommendation

Analyzing all data points, Digital Turbine is experiencing difficult times across multiple fronts. Fundamental analysis illustrates a decline in revenue but improving profitability. The technical analysis trends highlight a troubling bearish sentiment and significant recent declines in stock price. Alternative data suggests potential cost-cutting and declining customer engagement. With these considerations in mind, Digital Turbine presents several red flags.

Given the current data and with an AI score of 18, I would issue a Sell recommendation on Digital Turbine. While there is some positive momentum in net income and EBITDA year-over-year growth, the multiple concerning trends outweigh these gains, indicating that the stock may face further downward pressure moving forward.

Disclaimer: This AI stock analysis, generated by an experimental AI tool, is for informational purposes only and not financial advice. Information is based on publicly available data and may not always be accurate or current.