Should You Consider Buying Digital Turbine (APPS) Shares?

GreenWood Investors, an investment management firm, published its fourth-quarter 2021 investor letter – a copy of which can be downloaded here. The fund’s fourth-quarter performance was impacted along with most other stocks, -12.3% for the Global Micro Fund and -10.9% for the euro-denominated Luxembourg Global Fund. Both funds were up 13.0% and 24.2% respectively for the year, highlighting the impact of our unhedged currency position that we believe is transitory. These returns frustratingly compare poorly to the MSCI ACWI benchmark returns of +6.0% in the quarter and +18.2% YTD (+16.6% and +27.2% respectively in euro-denominations). Spare some time to check the fund’s top 5 holdings to have a clue about their top bets for 2022.

Greenwood Investors, in its Q4 2021 investor letter, mentioned Digital Turbine, Inc. (NASDAQ:APPS) and discussed its stance on the firm. Founded in 1998, Digital Turbine, Inc. (NASDAQ:APPS) is an Austin, Texas-based mobile services platform with a $4.1 billion market capitalization, and is currently spearheaded by its CEO, Bill Stone. Digital Turbine, Inc. (NASDAQ:APPS) delivered a -29.43% return since the beginning of the year, while its 12-month returns are down by -46.86%. The stock closed at $43.04 per share on March 18, 2022.

Here is what Greenwood Investors has to say about Digital Turbine, Inc. (NASDAQ:APPS) in its Q4 2021 investor letter:

“A great example of a combined growth, value and quality stock is a recent addition to the portfolio, Digital Turbine (APPS). The company has made two acquisitions which nearly tripled the revenue of the company while only increasing the shares outstanding by 11%. Its core technology, installed directly on 0.8 billion Android devices (soon to be 1.6 billion), allows it to truncate the multi-step process of installing a mobileapplication from an ad into one seamless step. Not only is the technology better than what vertically-integrated Apple can offer, but it significantly improves advertiser outcomes, by a factor of 2-5x. Most of those improved economics will begin accruing to Digital Turbine in the year ahead.”

Our calculations show that Digital Turbine, Inc. (NASDAQ:APPS) failed to obtain a mark on our list of the 30 Most Popular Stocks Among Hedge Funds. Digital Turbine, Inc. (NASDAQ:APPS) was in 31 hedge fund portfolios at the end of the fourth quarter of 2021, compared to 19 funds in the previous quarter. Digital Turbine, Inc. (NASDAQ:APPS) delivered a -22.07% return in the past 3 months.

In February 2022, we also shared another hedge fund’s views on Digital Turbine, Inc. (NASDAQ:APPS) in another article. You can find other letters from hedge funds and prominent investors on our hedge fund investor letters 2021 Q4 page.

Disclosure: None. This article is originally published at Insider Monkey.