Should You Buy, Sell or Hold APPS Stock After a 222% Surge in a Year

Core Insights - Digital Turbine (APPS) shares have increased by 221.9% over the past year, significantly outperforming the Zacks Internet – Software industry's growth of 0.9% [1] - The stock has also outperformed peers such as Unity Software (U) and AppLovin (APP), which returned 76.4% and 70.1% respectively [2] Business Performance - Digital Turbine's On Device Solutions (ODS) are central to simplifying app discovery and delivery through partnerships with carriers and OEMs, including Application Media and Content Media [5] - The ODS business has seen an 80% year-over-year growth in the second quarter of fiscal 2026, now accounting for over 25% of ODS revenues [6] - Revenue per device in the ODS business has grown by more than 30% year-over-year, driven by strong advertiser demand and global user growth [7] Financial Outlook - Digital Turbine projects fiscal 2026 revenues between $540 million and $550 million, with adjusted EBITDA expected to be between $100 million and $105 million [15] - The Zacks Consensus Estimate for APPS' third-quarter fiscal 2026 earnings is 16 cents per share, indicating a year-over-year growth of 23% [15] Strategic Partnerships - Digital Turbine has established strong partnerships with major companies like Xiaomi, Samsung, HMD, Nokia, and Motorola, enhancing its market position [13] - The addition of TIM (TIMB) as a partner in 2025 will further improve the smartphone experience through personalized app recommendations [14] Investment Recommendation - Given the growth in ODS and AGP, rising advertiser demand, strong international expansion, and diversified partnerships, Digital Turbine is considered an attractive investment opportunity [17]