APPS - Digital Turbine Earnings: A Stock You Should Not Buy Debt Is A Problem
2024-05-29 04:49:17 ET
Summary
- Digital Turbine stock is downgraded from hold to sell due to unappealing prospects and a heavy debt burden.
- The company faces challenges in monetizing through new device activations and transitioning its revenue base to align with new regulatory environments.
- Digital Turbine's financials reveal stagnant revenue growth, consistent misses on analysts' estimates, and a poor free cash flow conversion ratio.
Investment Thesis
Digital Turbine's ( APPS ) prospects are less enticing than I previously believed. On the back of its fiscal Q4 2024 results, the stock fell 7% after hours . Indeed, as I look through these results, I've now downwards revised this stock from a hold to a sell....
Digital Turbine Earnings: A Stock You Should Not Buy, Debt Is A Problem