Is Digital Turbine (APPS) a Smart Long-term Buy?

Choice Equities Capital Management recently released its Q3 2020 Investor Letter, a copy of which you can download here. The fund posted a return of 35% (net) for the quarter, outperforming its benchmark, the S&P 500 Index which returned 8.9% in the same quarter. You should check out Choice Equities Capital Management’s top 5 stock picks for investors to buy right now, which could be the biggest winners of 2021.

In the Q3 2020 Investor Letter, Choice Equities Capital Management highlighted a few stocks and Digital Turbine Inc. (NASDAQ:APPS) is one of them. Digital Turbine Inc. (NASDAQ:APPS) is a software company. Year-to-date, Digital Turbine Inc. (NASDAQ:APPS) stock gained 558.2% and on December 14th it had a closing price of $46.93. Here is what Choice Equities Capital Management said:

“APPS – Digital Turbine shares continued to benefit from increased investor discovery as it becomes increasingly clear the former microcap company is quite well-positioned in the world of digital advertising. As a platform that enables Android users to seamlessly download apps to their devices and also enables better tracking and measurement of advertising effectiveness, the global increase in time spent on mobile devices has been a boon for the company. The recent integration of Mobile Posse which has brought T-Mobile users and greater scale to the platform has also been a positive as the envisioned cross selling synergies are beginning to emerge. The company appears poised to continue to benefit from steady tailwinds from increasing smart phone usage and higher spend on digital advertising.”

In November, we published an article revealing that Greenhaven Road Capital is bullish on Digital Turbine Inc. (NASDAQ:APPS) stock. The investment firm has been bullish on the stock for the last several quarters.

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 216% since the end of 2014 and outperformed the S&P 500 Index ETFs by more than 121 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.