Texas-based on-demand mobile media platform provider Digital Turbine (NASDAQ:APPS) has an ambitious game plan. It’s unfortunate that some investors don’t appreciate the upside potential of APPS stock. Digital Turbine is a high-growth business with a multinational presence.
The company’s investor presentation serves up enough data points to convince any skeptic. Impressively, Digital Turbine boasts $1 billion in revenue, locations in four continents and 23 countries, over 45,000 publisher partnerships and more than 500 advertiser relationships.
Besides, Digital Turbine is operating in a market that’s poised for long-term expansion. As the company points out, the global mobile advertising market is estimated to grow from $340 billion in 2021 to over $540 billion in 2025.
And, I haven’t even mentioned Digital Turbine’s biggest selling points yet. As we’ll see, the share price is definitely in the buy zone — and on top of that, Digital Turbine has potent partnerships that cannot be overlooked.
A Closer Look at APPS Stock
Don’t get me wrong — I can see both sides of the issue. There’s one data point that might cause concern for value-focused investors.
In particular, Digital Turbine’s trailing 12-month price-to-earnings ratio is 82.72. That’s not indicative of a major bargain, I’ll admit.
On the other hand, APPS stock should appeal to short-term traders as it recently touched a crucial technical level. The stock is approaching $40, where it was trading in late 2020 before it launched into a huge rally.
As far as resistance levels are concerned, the buyers were rejected at $90 numerous times in the past. Therefore, if you buy the stock now and it gets to $90, it wouldn’t be a terrible idea to take profits.
As a long-term investment, APPS stock might seem too pricey based on its lofty P/E ratio. However, there’s positive news afoot and this could justify a long position even if valuation is a concern for some folks.
Working With a Tech Giant
In the tech world, you won’t find many businesses that are bigger and more influential than Alphabet (NASDAQ:GOOG, NASDAQ:GOOGL). So, any association with Alphabet/Google is a major coup for a mid-sized company.
It’s terrific news, then, for Digital Turbine’s stakeholders that the company recently announced a multi-year strategic partnership with Google.
Reportedly, Digital Turbine will work with a Google Cloud premier partner, SADA, to implement Google’s enterprise and cloud solutions while working to promote and expand the Android ecosystem.
Through this collaboration, the two companies intend to enable nearly a billion devices with intelligent app discovery — it’s mind-boggling when you think about it.
Google Cloud President Rob Enslin concisely articulated the vast scope of this exciting partnership.
“Digital Turbine… will utilize our advanced cloud and enterprise infrastructure to expand support of its value-added mobile experiences to end users around the globe,” Enslin clarified.
Just the Alphabet/Google partnership might be enough to get you interested in Digital Turbine. Yet, there’s even more good news to report.
As it turns out, there’s another collaboration in progress, and this one will expand Digital Turbine’s international presence.
With more than 365 million accesses, Telefónica is one of the largest telecommunications service providers on the planet. This arrangement, therefore, might actually be more significant than Digital Turbine’s agreement with Google.
The agreement spans both the European and Latin American markets, according to the press release. Furthermore, it adds new products that are designed to deliver best-in-class app recommendation experiences to Telefónica’s subscribers.
As you might expect, Digital Turbine chief executive officer Bill Stone celebrated this opportunity to extend his company’s global market footprint.
“We are very pleased to work with Telefónica on this launch that strategically expands our presence in both European and Latin American markets,” Stone stated.
The Bottom Line on APPS Stock
So, is APPS stock expensive, or really a bargain? For short-term traders, it’s trading at an attractive price point, so it’s definitely starting to look like a bargain.
For long-term investors, Digital Turbine presents a terrific buy-and-hold opportunity regardless of the company’s current valuation.
As the company collaborates with influential giants like Google and Telefónica, Digital Turbine will be unstoppable.
Really, there’s no need to obsess over the share price. Just consider a small stake, as this company is clearly poised for growth in 2022.
On the date of publication, David Moadel 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.
David Moadel has provided compelling content – and crossed the occasional line — on behalf of Crush the Street, Market Realist, TalkMarkets, Finom Group, Benzinga, and (of course) InvestorPlace.com. He also serves as the chief analyst and market researcher for Portfolio Wealth Global and hosts the popular financial YouTube channel Looking at the Markets.