Why Digital Turbine Stock Skyrocketed Today
Shares of digital advertising company Digital Turbine (NASDAQ: APPS) skyrocketed on Thursday after the company reported financial results for the second quarter of its fiscal 2023 that were better than expected. To be clear, its stock was up sharply in pre-market activity. Then the market jumped today and gave it extra rocket fuel. As of 11:45 a.m. ET, Digital Turbine stock was up a whopping 61%.
In Q2, the company's revenue fell 7% year over year to $175 million, and management is guiding for an even larger 12% to 17% year-over-year drop in revenue next quarter. That hardly sounds like financial results that merit a 61% jump in a single day. But there's more to the story than this.
The reality is there's been a softening in the digital ad space. However, Digital Turbine is enjoying unprecedented adoption. The company works with apps to get them seen, downloaded, and monetized. And its software comes preinstalled on mobile devices.
Source Fool.com
