Important note
This AI stock analysis for Digital Turbine is not up to date. Creating and accessing our AI stock Analysis (powered by our data and Chat GPT) is only available for our premium users. Sign up to get access today!
Digital Turbine - AI Stock Analysis
Analysis generated March 12, 2025
Digital Turbine, Inc. (NASDAQ: APPS) is a mobile media and app advertising company based in the United States. The company provides a unique app installation and advertising platform that helps developers and advertisers engage with their audiences. Digital Turbine's solutions span the entire app lifecycle, including discovery, engagement, monetization, and business growth. Its extensive partnerships with carriers and device manufacturers make it a significant player in the app industry. However, recent metrics indicate that the company may be going through a challenging phase.
Fundamental Analysis
Digital Turbine reported a revenue of $109 million for the last quarter. This represents a decrease of 1.84% compared to the previous quarter, and a more concerning decrease of 18.60% compared to the same quarter last year. This decline in revenue is a worrying signal for potential investors.
However, on a more positive note, the company's net income for the last quarter rose to $25 million, representing a modest 0.68% increase compared to the previous quarter and an impressive 84.53% increase compared to the same quarter last year. This indicates that the company has been able to improve its profitability despite declining revenues.
EBITDA for the last quarter was $5 million, reflecting an 11.74% decrease from the previous quarter but a substantial 103.74% increase compared to the same quarter last year. The year-over-year increase in EBITDA suggests improved operational efficiency and cost management.
Technical Analysis
As of today, Digital Turbine's stock price is $2.88. This represents a significant decrease of 53.09% from a month ago, which could be troubling for short-term investors. The year-over-year decrease of 3.36% also adds to the concerns for long-term investors.
The current downtrend is further supported by the Simple Moving Average (SMA). The current SMA10 is $3.05, which is lower than the previous SMA10 of $3.10, suggesting a potential downward trend in price movement.
The Relative Strength Index (RSI) stands at 32.4, which indicates a neutral condition. RSI values below 30 typically suggest that a stock is oversold, but a value of 32.4 is close to those levels, indicating potential overselling pressure.
Alternative Data Analysis
Analyzing job postings and employee sentiment, Digital Turbine has 13 open positions, down by 35% in the last couple of months. This reduction in job postings could indicate cost-cutting measures, which is not a positive sign for a growing company.
Employee sentiment is low, with only 26% of employees having a positive business outlook. This sentiment, coupled with a 19% decline in positive outlook among employees recently, is concerning.
Customer acquisition metrics show that Digital Turbine's website garners approximately 190,000 visitors, but this number has decreased by 23% in recent months. This trend is worrisome as it suggests a loss in customer interest and engagement.
On social media, Digital Turbine's Instagram page has 2,500 followers, a 4% increase in the last couple of months, indicating a slight rise in interest. On Twitter, the company has 4,800 followers, with no significant change in recent months.
The AltIndex AI score for Digital Turbine is 22, which signals a strong sell recommendation based on combined fundamental, technical, and alternative data.
Conclusion and Recommendation
In summary, while Digital Turbine demonstrates some positive aspects such as increased net income and EBITDA year over year, the declining revenue, significant drop in stock price, negative employee sentiment, decreased website traffic, and a strong sell signal from the AltIndex AI score altogether paint a concerning picture for potential investors. Digital Turbine appears to be in a precarious position, facing multiple headwinds both internally and externally.
Given the data provided, it is recommended to approach this stock with caution. Comprehensive due diligence and close monitoring of subsequent financial reports and market conditions are advisable before making any investment decisions.
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.
