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APPS Stock Alert: 7 Things to Know About the Google Deal Goosing Digital Turbine Shares Today


Shares of Digital Turbine (NASDAQ:APPS) are climbing today after the tech firm announced that it had agreed to undertake a “multi-year strategic partnership with” Alphabet’s (NASDAQ:GOOG, NASDAQ:GOOGL) Google. Digital Turbine’s technology enhances mobile ads and the monetization of mobile traffic. In early trading, APPS stock is advancing 4% to $66 amid much higher than normal volume.

APPS stock: A digital illustration of software icons surrounding a cellphone.
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Digital Turbine did not disclose the financial terms of the alliance. However, here are seven things that we do know about the deal.

  • Digital Turbine is going to collaborate with Google Cloud’s partner, SADA.
  • Digital Turbine and SADA will attempt to quickly improve and geographically expand Google Cloud’s “enterprise and cloud solutions.”
  • The two companies will also seek to develop additional “growth and monetization” opportunities for Google’s “partners.”
  • Digital Turbine will use Google’s “advanced cloud and enterprise infrastructure.”
  • The company will, for the first time, enhance the “mobile experiences” of overseas Android users.
  • More specifically, Digital Turbine will enable “app discovery for nearly a billion Android devices globally.”
  • Digital Turbine will be supporting “mobile, TV and connected devices” that utilize Android.

Other Things to Know About APPS Stock

In the last month, APPS stock has rallied over 20%. However, shares are still down nearly 30% from their late October peak. The stock now has a market capitalization of nearly $6.4 billion and is trading at a hefty, but not huge, trailing price-to-sales ratio of 7.45.

Additionally, institutional investors hold 75% of the shares. Among the largest institutional owners of the stock, as of Sept. 29, were Blackrock (NYSE:BLK) with a 10% stake, Wellington Management Group with a 6.55% stake, Vanguard Group with a 9.17% stake, State Street (NYSE:STT) with a 2.86% stake, and JPMorgan (NYSE:JPM), which owned 1.86% of the company.

On the date of publication, Larry Ramer did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Larry Ramer has conducted research and written articles on U.S. stocks for 15 years. He has been employed by The Fly and Israel’s largest business newspaper, Globes. Larry began writing columns for InvestorPlace in 2015. Among his highly successful, contrarian picks have been SMCI, INTC, and MGM. You can reach him on Stocktwits at @larryramer.

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