The market has sold off hard this year, especially if you are a high-growth technology company. One name that has gotten hammered particularly hard is mobile growth platform, Digital Turbine (APPS). In this report, we give an update on the business, the opportunities, profitability, valuation (as an acquisition target and as a standalone company) and our opinion on investing.
New Purchase: High Growth Media Platform Stock
This is simply a quick note to let you know we made a new purchase in our Discipline Growth portfolio this morning. This is a high growth company that recently posted another quarter of impressive results whereby they raised forward guidance on their already very strong and healthy growing business. The shares are trading below the price when we released our original full write-up on the company back in March (see that full write-up below). And as mentioned, the business continues to improve. The shares sold off hard on Friday (on what appears to be incorrect news about an application rule change). We don’t expect the price to stay low for long, and we just added shares this morning.
This Media Platform Stock: Rapid Rise to Resume
This on-device media platform is attractive because of its business model, rapid growth (~115% in FY21), expanding margins, solid free cash flow generation and large market opportunity. Further, the recent share price sell off (it’s still below its all-time highs due to the the recent mini “tech wreck”) has created an attractive entry point for long-term investors. In this report, we review the health of the business, valuation, risks, and then conclude with our opinion on investing.