Last year was a great year to own shares of on-demand mobile media platform provider Digital Turbine (NASDAQ:APPS). The share price momentum of APPS stock was impressive, and it continued into early 2021.
But as the old financial market saying goes, trees don’t grow straight to the heavens. In other words, even the most promising momentum stocks have to take a breather sometimes.
That seems to be happening with APPS stock, but no worries. This could just be market’s way of shaking out the folks who get bored too easily.
The remedy is to be patient, of course, but also to understand what’s great about Digital Turbine in the first place. Plus, an expansion of a value-added partnership with a well-known social media platform ought to motivate the investors to stay the course.
APPS Stock at a Glance
Back in March of 2020, APPS was available for the low price of $4. Those were scary times, but the share-price drop turned out to be a terrific buying opportunity.
The ensuing rally was breathtaking, and that’s no exaggeration. By March 1, 2021, the Digital Turbine share price had flown all the way up to a 52-week high of $102.56.
It’s generally a good idea to take profits after a stock has gone up 2,000%. After all, greed is a portfolio killer.
Thus, APPS stock retraced to the $60’s during 2021’s first half and stayed there for several months. As of Aug. 5, the stock was trading at $65 and change and mostly just going sideways.
This might be an example of the principle which says, “The longer the base, the higher in space.”
In other words, the stock might just be “basing” for another leg up – and investors will want to be on the right side of that trade, no doubt.
A One-Stop Platform
Before you can really be an informed and enthusiastic investor in the company, you first need to understand that Digital Turbine is a company in growth mode.
Right on the company’s home page, you’ll see that Digital Turbine is proud of its acquisition of Appreciate, AdColony and Fyber.
As a result of these acquisitions, Digital Turbine has become a one-stop platform for growth and monetization.
With these brands under its umbrella, Digital Turbine empowers brands through high-impact video and creative experiences.
Meanwhile, if you’ve created an app and want to monetize it, Digital Turbine can help you to do this through industry-leading video experiences.
Through this business model, Digital Turbine’s technology platform has been adopted by more than 40 mobile operators and original equipment manufacturers.
On top of that, the company has delivered more than 3 billion app pre-loads for tens of thousands advertising campaigns.
Expanding a Partnership
Clearly, Digital Turbine is making all the right moves – and that includes a geographic expansion throughout the Americas.
In a fresh press release, Digital Turbine announced that it is expanding its app distribution partnership with ultra-popular social media platform TikTok.
Reportedly, Digital Turbine is expanding its current Latin America partnership with TikTok, and is to be the preferred distributor for TikTok on mobile device pre-load inventory in North America.
TikTok will manage its platform’s mobile pre-loads through Digital Turbine’s platform, according to the agreement between the two companies.
And with that, TikTok will be the preferred short-form video platform pre-loaded on Digital Turbine inventory.
Digital Turbine CEO Bill Stone acknowledged that the TikTok partnership expansion should provide notable benefits for his company.
“We’re pleased to extend our partnership, further accelerating their growth and building upon our success in LATAM to the US,” Stone said.
The Takeaway on APPS Stock
There’s really nothing wrong with a stock taking a breather. It’s a natural and expected part of the process for high-quality names.
Digital Turbine’s technology is already found on many devices, in a number of geographic locations.
The TikTok partnership will only enhance Digital Turbine’s reach. And in time, the APPS stock price should be back on its upward trajectory.
— Louis Navellier and the InvestorPlace Research Staff
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Source: Investor Place