One of today’s biggest earnings movers is Digital Turbine (NASDAQ:APPS). The company has shed more than 70% of its value over the past year; however, the mobile growth platform reported earnings yesterday and APPS has been rising steadily all day. The company has demonstrated quarter over quarter (Q/Q) growth in several key areas since the year began, including revenue from app growth platform and device solutions. After months of struggling, the penny stock may finally be on the verge of a turnaround.
Does this earnings success mean that APPS stock can finally rise above the $5 mark? Let’s take a closer look at this news and assess what investors should expect in the second half of 2024.
What’s Happening With APPS Stock
Today marks the company’s best trading day in months. As of this writing, APPS stock is up 60% and is poised to close out the day at almost $3 per point. Since the penny stock began trading today at just over $2, this is progress is notable, as is the growth reported in the earning report.
Digital Turbine highlighted in its recent earnings statement, “Fiscal first quarter of 2025 revenue totaled $118.0 million, representing an increase of 5% quarter-over-quarter as compared to the fiscal fourth quarter of 2024, and a decline of 19% year-over-year as compared to the fiscal first quarter of 2024.” The company certainly needed to show progress. When Digital Turbine reported earnings for Q4 2024 in May, it beat earnings-per-share (EPS) estimates but missed on revenue. As InvestorPlace contributor Matthew Farley reported:
“In Q4 2024, the company achieved revenue of $112.2 million. That’s a 20% decline from $140.1 million in the same quarter the previous year. The company experienced a significant net loss of $236.5 million. This was primarily influenced by a non-cash goodwill impairment charge of $189.5 million.”
Now APPS stock is back in the green after a more promising earnings report. While this growth has helped boost shares in the short term, the company’s long term future remains highly uncertain. The fact that shares are down roughly 60% since the year began should compel investors to approach this stock with caution, even as the recent earnings success sparks optimism.
On the date of publication, Samuel O’Brient 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.
On the date of publication, the responsible editor did not have (either directly or indirectly) any positions in the securities mentioned in this article.
