Apps stock

Why Digital Turbine Stock (APPS) is a Compelling Investment Case

Greenhaven Road Capital recently released its Q3 2020 Letter to Investors, a copy of which you can download here. Greenhaven’s estimated returns for the third quarter totaled approximately +50% net of fees and expenses. August was the best month in the partnership’s history. The net result is that both funds are up about 55% for the year, comparing favorably to the Russell 2000, which ended September down -8.7% year-to-date. You should check out Greenhaven Road Capital’s top 5 stock picks investors can buy right now that could be this year’s biggest winners.

In said letter, Greenhaven Road Capital highlighted a few stocks and Digital Turbine Inc. (NASDAQ:APPS) is one of them. Digital Turbine Inc. (NASDAQ: APPS) is a software company. Year-to-date, Digital Turbine Inc. (NASDAQ:APPS) stock has gained 380.7% and on Nov. 3 had a closing price of $34.27. Here is what Greenhaven Road Capital said:

“Digital Turbine (APPS) – In round numbers, Digital Turbine’s stock price nearly tripled during the quarter. What happened ? allow app downloads. Digital Turbine sits between major carriers, like Verizon and AT&T, and companies, like Netflix and Amazon, that want their apps preinstalled on Android phones. With 6,000 apps added to the Android platform every day, the demand for the limited number of app slots has only increased. Fortunately for Digital Turbine, device counts and revenue per device continue to improve, which has helped drive the stock price higher. However, I think the most important factor was that earlier this year the company acquired Mobile Posse, which provides “media and advertising solutions for carriers and OEM partners while delivering richer content and more relevant to end users”. This is content activity that generates substantial recurring revenue over the life of the phone and is not as tied to new phone activations/sales as historical app install activity. The recurring revenue nature of Mobile Posse is attractive, as is the potential for Mobile Posse to sell products into Digital Turbine’s existing base and vice versa. I think it remains a very well-positioned business with the potential for cross-selling to produce incremental increases in growth if successful.

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Zeynep Demir /

In August, we published a story exposing Greenhaven Road Capital’s bullish investment thesis on Digital Turbine Inc. (NASDAQ:APPS) stock in its Q2 2019 letter to investors. has long been bullish on Digital Turbine Inc. (NASDAQ:APPS).

In the second quarter of 2020, the number of bullish hedge fund positions in Digital Turbine Inc. (NASDAQ:APPS) stock was down about 18% from the previous quarter (see chart here), so a number of other hedge fund managers do not believe in Digital Turbine’s growth potential. Our calculations showed that Digital Turbine Inc. (NASDAQ:APPS) is not ranked among the top 30 stocks among hedge funds.

The top 10 stocks among hedge funds have returned 185% since the end of 2014 and have outperformed S&P 500 Index ETFs by more than 109 percentage points. We know that sounds amazing. You rejected our articles on top hedge fund stocks mainly because other media outlets gave you biased information about poor hedge fund performance. You could have doubled the size of your nest egg by investing in the best hedge fund stocks instead of stupid S&P 500 ETFs. Below you can watch our video on the top 5 hedge fund stocks right now. All of these stocks posted positive returns in 2020.

Video: Top 5 stocks among hedge funds

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Disclosure: none. This article originally appeared on Insider Monkey.