Advertisement
Canada markets open in 8 hours 44 minutes

  • S&P/TSX

    21,885.38
    +11.66 (+0.05%)
     

  • S&P 500

    5,048.42
    -23.21 (-0.46%)
     

  • DOW

    38,085.80
    -375.12 (-0.98%)
     

  • CAD/USD

    0.7324
    +0.0001 (+0.02%)
     

  • CRUDE OIL

    83.86
    +0.29 (+0.35%)
     

  • Bitcoin CAD

    87,740.02
    -36.80 (-0.04%)
     

  • CMC Crypto 200

    1,389.14
    +6.57 (+0.48%)
     

  • GOLD FUTURES

    2,347.50
    +5.00 (+0.21%)
     

  • RUSSELL 2000

    1,981.12
    -14.31 (-0.72%)
     

  • 10-Yr Bond

    4.7060
    +0.0540 (+1.16%)
     

  • NASDAQ futures

    17,770.25
    +202.75 (+1.15%)
     

  • VOLATILITY

    15.37
    -0.60 (-3.76%)
     

  • FTSE

    8,078.86
    +38.48 (+0.48%)
     

  • NIKKEI 225

    37,982.88
    +354.40 (+0.94%)
     

  • CAD/EUR

    0.6828
    +0.0007 (+0.10%)
     

Digital Turbine stock soars on Q2 earnings

Yahoo Finance Video

Yahoo Finance Live checks out Digital Turbine shares following its second-quarter earnings report.

Video Transcript

RACHELLE AKUFFO: So I'll start with my pick, which is Digital Turbine, ticker APPS. Now it's a top trending ticker on Yahoo Finance today. Stock and the mobile end-to-end solution platform, which helps with advertising and monetization solutions, really surging today, up more than 60%. Now part of this is a relief rally for not faring as poorly as expected with its mixed Q2 earnings and lower Q4 revenue guidance. But EBITDA margins did hit a new high of 27.6%.

Now investors seem to be betting on the future growth prospects. That's another reason for this rally. We're seeing on the earnings call management highlighted Google as a new single-tap licensing partner and a very large e-commerce player in the works as a single-tap licensee. A lot of people widely expecting that to be Amazon. Now that revenue potential could help with secular growth at a time when companies are already tightening their advertising budgets. But the stock has struggled year to date. Give you some context-- down more than 70%. So definitely a bet on the future, Seana, because it's been a rough year so far.

ADVERTISEMENT

SEANA SMITH: It certainly has been a rough year. It's been a rough past couple of days. The stock was off 27% in the past six trading sessions, leading up to these results. So the bounce that we're seeing today is off the lowest level for the stock since 2020. Taking a look at some of the analyst reaction to the numbers that we just got from the company, Roth Capital saying that they are positive on the company's ability to expand margins, especially against a tough macroeconomic backdrop.

So you mentioned that year to date drop. Maybe it's time to enter into some of these names that have been beaten down over the last several months, given that inflation report we got this morning. Maybe it won't be as bad as investors have been expecting. At least, it looks like, that's what's going on with this stock today.