Digital Turbine (APPS) Stock Has Risen 326% in Last One Year, Outperforms Market

If you are looking for the best ideas for your portfolio you may want to consider some of Greenhaven Road Capital‘s top stock picks. Greenhaven Road Capital, an investment management firm, is bullish on Digital Turbine Inc. (NASDAQ:APPS) stock. In its Q3 2019 investor letter – you can download a copy here – the firm discussed its investment thesis on Digital Turbine Inc. (NASDAQ:APPS) stock. Digital Turbine Inc. (NASDAQ:APPS) is a software company.

On October 13, 2019, Greenhaven Road Capital had released its Q3 2019 investor letter. Digital Turbine Inc. (NASDAQ:APPS) was one of the Top 5 holdings of Greenhaven in Q3 2019. The stock has posted a return of 326% in the trailing one year period, outperforming the S&P 500 Index which returned 15% in the same period. This suggests that the investment firm was right in its decision.

Earlier this month, we published an article revealing Greenhaven’s bullish investment thesis on Digital Turbine Inc. (NASDAQ:APPS) stock in its Q3 2020 investor letter. This suggests that the investment firm has been bullish for a long time on Digital Turbine Inc. (NASDAQ:APPS).

Greenhaven’s fund posted a return of less than 1% in the third quarter of 2019, underperforming the S&P 500 Index which returned 1.7% in the same quarter. Let’s take a look at comments made by Greenhaven Road Capital about Digital Turbine Inc. (NASDAQ:APPS) in the Q3 2019 investor letter.

“Digital Turbine (APPS) – Our Digital Turbine thesis remains exactly the same. Digital Turbine serves as a neutral third party that works with wireless carriers to pre-install apps on new cell phones, then sells the “slots” to appdriven companies such as Uber, Amazon, and Netflix. The company is in the early stages of a relationship with Samsung, the world’s largest cell phone manufacturer, to enable Digital Turbine to monetize in geographies where they do not yet have wireless carrier deals in place. Over time, I expect the number of devices as well as the revenue per device to increase materially. In my view, both of these earnings drivers could go up 50% and the share price can still appreciate significantly. The company guided to revenue growth in excess of 40% and indicated that the base of recurring revenue from their revenue sharing deals continues to grow.”

In Q2 2020, the number of bullish hedge fund positions on Digital Turbine Inc. (NASDAQ:APPS) stock decreased by about 18% from the previous quarter (see the chart here), so a number of other hedge fund managers don’t believe in Digital Turbine’s growth potential. Our calculations showed that Digital Turbine Inc. (NASDAQ:APPS) isn’t ranked among the 30 most popular stocks among hedge funds.

The top 10 stocks among hedge funds returned 185% since the end of 2014 and outperformed the S&P 500 Index ETFs by more than 109 percentage points. We know it sounds unbelievable. You have been dismissing our articles about top hedge fund stocks mostly because you were fed biased information by other media outlets about hedge funds’ poor performance. You could have doubled the size of your nest egg by investing in the top hedge fund stocks instead of dumb S&P 500 ETFs. Below you can watch our video about the top 5 hedge fund stocks right now. All of these stocks had positive returns in 2020.

Video: Top 5 Stocks Among Hedge Funds

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