Why Digital Turbine Stock Gained Another 26% in December
Shares of Digital Turbine (NASDAQ: APPS) gained 25.7% in December, according to data provided by S&P Global Market Intelligence. During the month, the Chamber of Commerce in its home town of Austin, Texas, gave it the Company Culture Award for a mid-size company. But this likely didn't affect the stock. Rather, advertising technology is a hot stock market sector in general, and analysts continued to specifically favor Digital Turbine's potential.
Digital Turbine's software helps companies promote their smartphone and smart-TV apps. The company has deals in place with major telecom companies and its software comes preloaded on many Android phones. That said, the stock shot up at the same time Nikkei Asia reported Apple is increasing iPhone production by 30%.
Of course, iPhones don't run on Android, so the move looks illogical at first. But if Apple increases production, perhaps investors reason that other smartphone manufacturers are also increasing production. Since many of Digital Turbine's deals are new, it's poised to benefit more with more new phone sales.
Source Fool.com
