Why Digital Turbine Fell 12.5% in October
Shares of Digital Turbine (NASDAQ: APPS) fell 12.5% in October, according to data from S&P Global Market Intelligence. The application delivery and monetization software company took a breather following its third quarter earnings report, despite beating analyst expectations for revenue growth and adjusted (non-GAAP) earnings per share. In addition, many tech growth stocks that had logged big gains this year sold off prior to the election, probably because of fears over higher capital gains taxes.
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Digital turbine is well positioned to take advantage of the app-based economy on mobile phones, which has accelerated during the pandemic. In the its fiscal second quarter, revenue accelerated 116% to $70.9 million, with the bottom line swinging to a slight profit of $0.4 million from a loss of $1.3 million a year ago. Adjusted EBITDA also surged 265% to $16.5 million.
Source Fool.com
