Texas-based on-demand mobile media platform provider digital turbine (NASDAQ:APPLICATIONS) has an ambitious game plan. It is unfortunate that some investors do not appreciate the upside potential of APPS shares. Digital Turbine is a fast growing company with a multinational presence.
Source: digitalturbine.com
The company’s investor presentation provides enough data points to convince any skeptic. Impressively, Digital Turbine boasts $1 billion in revenue, sites on four continents and 23 countries, over 45,000 publisher partnerships and over 500 advertiser relationships.
Additionally, Digital Turbine operates in a market that is ripe for long-term expansion. As the company points out, the global mobile advertising market is expected to grow from $340 billion in 2021 to over $540 billion in 2025.
And, I haven’t even mentioned Digital Turbine’s main selling points yet. As we’ll see, the stock price is definitely in the buy zone – and on top of that, Digital Turbine has powerful partnerships that can’t be overlooked.
A closer look at APPS Stock
Don’t get me wrong – I can see both sides of the issue. There is one data point that might worry value investors.
In particular, Digital Turbine’s 12-month price-to-earnings ratio is 82.72. It’s not indicative of a major case, I admit.
On the other hand, APPS stock should appeal to short-term traders as it recently touched a crucial technical level. The stock is approaching $40, where it was trading in late 2020 before embarking on a huge rally.
As for the resistance levels, buyers have been rejected at $90 several times in the past. Therefore, if you buy the stock now and it hits $90, it wouldn’t be a bad idea to take profit.
As a long-term investment, APPS stock may seem overpriced due to its high P/E ratio. However, there is some positive news afoot and this could warrant going long even though valuation is a concern for some people.
Work with a tech giant
In the tech world, you won’t find many bigger and more influential companies than Alphabet (NASDAQ:GOOG, NASDAQ:GOOGL). So any association with Alphabet/Google is a major blow for a medium-sized company.
So it’s great news for Digital Turbine stakeholders that the company recently announced a multi-year strategic partnership with Google.
According to reports, Digital Turbine will work with a leading Google Cloud partner, SADA, to implement Google’s enterprise and cloud solutions while working to promote and expand the Android ecosystem.
Through this collaboration, the two companies intend to enable nearly a billion devices to discover smart apps – it’s mind-boggling when you think about it.
Google Cloud President Rob Enslin concisely described the broad scope of this exciting partnership.
“Digital Turbine…will use our advanced cloud and enterprise infrastructure to extend support for its value-added mobile experiences to end users around the world,” Enslin said.
Collaborate abroad
The Alphabet/Google partnership may be enough to get you interested in Digital Turbine. Yet there is even more good news to report.
As it turns out, another collaboration is on the way, and this one will expand Digital Turbine’s international presence.
The company, it seems, is expanding its strategic partnership with Telefonica (NYSE:EFT). You may or may not have heard of this company, depending on your location.
With more than 365 million accesses, Telefónica is one of the largest telecommunications service providers on the planet. This arrangement could therefore be more important than Digital Turbine’s agreement with Google.
The agreement covers both European and Latin American markets, according to the press release. Additionally, it adds new products designed to deliver the best app recommendation experiences to Telefónica subscribers.
As you’d expect, Digital Turbine CEO Bill Stone celebrated the opportunity to expand his company’s footprint in the global market.
“We are very pleased to work with Telefónica on this launch which strategically expands our presence in European and Latin American markets,” said Stone.
The basics of APPS Stock
So, is APPS stock expensive or really a bargain? For short-term traders, it’s trading at an attractive price, so it’s definitely starting to look like a bargain.
For long-term investors, Digital Turbine presents a tremendous buy-and-hold opportunity, regardless of the company’s current valuation.
As the company collaborates with influential giants like Google and Telefónica, Digital Turbine will be unstoppable.
Really, there’s no need to obsess over the stock price. Just consider a small stake, because this business is clearly poised to grow in 2022.
As of the date of publication, David Moadel had no position (directly or indirectly) in the securities mentioned in this article. The opinions expressed in this article are those of the author, subject to InvestorPlace.com Publication guidelines.
David Moadel has delivered compelling content – and crossed the occasional line – on behalf of Crush the Street, Market Realist, TalkMarkets, Finom Group, Benzinga and (of course) InvestorPlace.com. He is also the Chief Analyst and Market Researcher for Portfolio Wealth Global and hosts the popular YouTube financial channel Looking at the Markets.
