The Zacks Internet software industry participants like MDB, APPS and EGHT are benefiting from high demand for SaaS due to the increasing need for hybrid work, learning and diagnosis software, as well as cybersecurity applications.
Investors interested in stocks from the Internet - Software sector have probably already heard of Digital Turbine (APPS) and Zoom Communications (ZM). But which of these two companies is the best option for those looking for undervalued stocks?
Digital Turbine (APPS) has been upgraded to a Zacks Rank #1 (Strong Buy), reflecting growing optimism about the company's earnings prospects. This might drive the stock higher in the near term.
APPS beats Q3 earnings estimates as revenues rise 12% year over year, but shares slide despite margin expansion and higher EBITDA.
Digital Turbine, Inc. faces structural headwinds: high debt, weak margins, and a challenged mobile advertising model post-Apple privacy changes. Despite raising FY26 revenue guidance to $553M–$558M and improving margins, APPS' free cash flow remains thin versus an 11.68% interest rate on $355M debt. APPS' valuation is highly sensitive to margin swings; even optimistic DCF assumptions only yield reasonable value, with downside risk if growth or margins slip.
Digital Turbine, Inc. (APPS) Q3 2026 Earnings Call Transcript
Internet Software stocks head into Q4 earnings with mixed expectations as cloud adoption, AI features and cautious enterprise IT spending shape results.
APPS' fiscal third-quarter performance is expected to have benefited from ODS and AGP growth, but macro uncertainty and competition remain risks.
Digital Turbine gains momentum while PubMatic shifts strategy amid changing DSP demand and tightening AdTech dynamics.
Digital Turbine's AGP business surges on a 30% jump in ad impressions, fueled by wider SDK reach, non-gaming gains and strong APAC momentum.
APPS' ODS business surges on stronger ad demand, higher smartphone shipments and rising global traction despite competitive pressures.
Digital Turbine's business continues to recover after facing a difficult multi-year period which saw its business evolve significantly. While revenue growth is improving, this is only really due to expansion of the business in Asia Pacific and China. Digital Turbine's margins are rapidly improving, supported by the fact that operating expenses are normalizing.