Digital Turbine (NASDAQ:APPS) Shares Gap Down – Here’s What Happened

Digital Turbine, Inc. (NASDAQ:APPS)’s share price gapped down before the market opened on Tuesday. The stock had previously closed at $11.30, but opened at $8.29. Digital Turbine shares last traded at $7.3210, with a volume of 5,649,690 shares trading hands.

Digital Turbine News Summary

Here are the key news stories impacting Digital Turbine this week:

• Positive Sentiment: Fiscal Q2 revenue rose 27% year over year to $178.7 million, beating estimates, while adjusted EPS of $0.18 also topped expectations. Adjusted EBITDA increased 46% to $39.8 million. Digital Turbine reports fiscal 2027 second-quarter results
• Positive Sentiment: The company raised its FY2027 revenue outlook to $670 million–$690 million, above the roughly $665 million analyst consensus, citing momentum in its App Growth Platform. Digital Turbine FY2027 guidance
• Neutral Sentiment: Management pointed to AI-driven declines in open-web traffic as a potential shift of advertising toward apps, while also investing in AI. CEO comments on AI and advertising
• Negative Sentiment: Investors were concerned that higher partner payouts squeezed margins and that the company kept its FY2027 adjusted EBITDA forecast at $145 million–$155 million despite raising revenue guidance. Planned AI spending adds to near-term profit concerns. Digital Turbine earnings and AI investments

Analyst Upgrades and Downgrades

APPS has been the subject of several analyst reports. Roth Capital began coverage on shares of Digital Turbine in a research report on Thursday, October 15th. They set a “buy” rating and a $19.00 price target for the company. Royal Bank Of Canada initiated coverage on shares of Digital Turbine in a research note on Thursday, October 1st. They set an “outperform” rating and a $15.00 price target for the company. Craig Hallum restated a “buy” rating and issued a $18.00 price objective on shares of Digital Turbine in a report on Wednesday, August 5th. Northland Securities began coverage on shares of Digital Turbine in a research note on Thursday, October 29th. They issued an “outperform” rating and a $17.00 price objective on the stock. Finally, Wall Street Zen lowered shares of Digital Turbine from a “strong-buy” rating to a “buy” rating in a report on Sunday. Six equities research analysts have rated the stock with a Buy rating, two have issued a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat, the stock has a consensus rating of “Moderate Buy” and a consensus price target of $15.42.

Digital Turbine Trading Down 35.4%

The business has a 50 day moving average of $10.59 and a 200 day moving average of $7.68. The firm has a market capitalization of $883.08 million, a price-to-earnings ratio of -27.88, a PEG ratio of 0.49 and a beta of 3.01. The company has a debt-to-equity ratio of 1.80, a current ratio of 1.20 and a quick ratio of 1.20.

Digital Turbine (NASDAQ:APPS) last released its earnings results on Monday, November 9th. The software maker reported $0.18 earnings per share for the quarter, beating the consensus estimate of $0.17 by $0.01. Digital Turbine had a positive return on equity of 38.34% and a negative net margin of 4.46%. The firm had revenue of $178.68 million for the quarter, compared to analyst estimates of $166.75 million. As a group, research analysts predict that Digital Turbine, Inc. will post 0.63 earnings per share for the current fiscal year.

Institutional Trading of Digital Turbine

A number of institutional investors and hedge funds have recently modified their holdings of APPS. Royce & Associates LP raised its position in shares of Digital Turbine by 107.8% in the 3rd quarter. Royce & Associates LP now owns 293,058 shares of the software maker’s stock valued at $3,253,000 after acquiring an additional 152,027 shares during the period. Diversified Trust Co acquired a new position in Digital Turbine during the third quarter valued at approximately $299,000. Aberdeen Group plc acquired a new position in Digital Turbine during the third quarter valued at approximately $3,955,000. Pictet Asset Management Holding SA acquired a new position in Digital Turbine during the third quarter valued at approximately $234,000. Finally, CenterBook Partners LP acquired a new position in Digital Turbine during the third quarter valued at approximately $1,358,000. 63.66% of the stock is owned by institutional investors.

About Digital Turbine

Digital Turbine, Inc provides mobile technology and advertising solutions that connect app developers and advertisers with consumers through smartphones and other connected devices. Its platform supports app discovery, user acquisition, and advertising across the mobile ecosystem.

The company’s services include on-device app recommendations and installation tools, as well as advertising solutions for app publishers and brands. Digital Turbine works with mobile operators and device manufacturers to deliver these services to users.

Digital Turbine expanded its mobile advertising capabilities through acquisitions, including AdColony and Fyber in 2021.